The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that beneficiaries of flare gas sites risk losing their awards if they fail to demonstrate meaningful progress in utilising the resources.
The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, gave the warning during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in Abuja on Tuesday.
NUPRC Head of Corporate Communications and Media, Mr Eniola Akinkuotu, disclosed this in a statement issued yesterday.
Eyesan, who provided an update on the Nigerian Gas Flare Commercialisation Programme (NGFCP), said the commission would assess the performance of awardees one year after the granting of each award.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” she said.
She added, “Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary.”
The NUPRC boss said that despite initial resistance from some operators, the NGFCP had continued to make significant progress.
According to her, 43 flare gas sites were initially identified for award, while 27 have so far been successfully awarded, with implementation currently ongoing.
Eyesan said Nigeria’s vast gas reserves offered the country an opportunity to accelerate industrialisation, improve power generation and expand its export capacity.
“Nigeria currently has over 215 trillion cubic feet (TCF) of proven gas reserves and an estimated total reserve base of about 600 TCF,” she said.
“These resources provide a strong foundation for power generation, industrialisation, exports and broader economic development.”
She also highlighted progress in the implementation of the Host Community Development Trust framework established under the Petroleum Industry Act (PIA).
According to Eyesan, the framework was designed to address longstanding grievances in oil-producing communities and promote sustainable development through greater participation by host communities in petroleum operations.
She said available data showed that the implementation of the trusts had contributed to reductions in oil theft and spills while improving relations between operators and host communities.
“To date, 173 Host Community Development Trusts have been incorporated, 147 have been funded, over 1,001 projects are currently ongoing, while more than 200 projects have been successfully commissioned across host communities,” she said.
In his remarks, Ekpo urged stakeholders to pursue an aggressive implementation of the country’s gas commercialisation programme to ensure Nigeria meets its 2030 target of ending routine gas flaring.
He said the focus should be on transforming gas currently being flared into products and services that would contribute to economic growth.
“The core objective is to add value to our gas resources by converting them into critical products and services.
“We must move away from environmental pollution and toward productive resource utilisation,” the minister said.
