By Kelvin Alohan
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned operators awarded gas flare sites that failure to demonstrate significant progress in utilising the sites could lead to the revocation of their permits.
The Commission Chief Executive (CCE), NUPRC, Oritsemeyiwa Eyesan, disclosed this during a working visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.
Eyesan, according to a statement issued by Eniola Akinkuotu, head, Corporate Communications and Media, NUPRC, presented an update on the Nigerian Gas Flare Commercialisation Programme (NGFCP) during the meeting.
She said the commission would conduct an evaluation of each gas flare site award one year after it was granted to assess the level of progress recorded.
“Where there is insufficient progress, the commission will take appropriate regulatory action, including revocation of the award where necessary,” she said.
Eyesan said the NGFCP had continued to record significant progress despite initial resistance from some operators.
She disclosed that 43 gas flare sites were initially identified for award, while 27 sites had so far been successfully awarded.
“Implementation efforts are ongoing,” she added.
The NUPRC boss said Nigeria currently had over 215 trillion cubic feet (TCF) of proven gas reserves, with an estimated total reserve base of about 600 TCF.
According to her, the country’s vast gas resources provide a strong foundation for power generation, industrialisation, exports and broader economic development.
On host community development, Eyesan said the Petroleum Industry Act (PIA) introduced the Host Community Development Trust framework to address longstanding concerns in oil-producing communities and promote sustainable development.
She said available data showed that the implementation of the trusts had contributed to reductions in oil theft and oil spills, while strengthening relationships between operators and host communities.
Eyesan disclosed that 173 Host Community Development Trusts had been incorporated, with 147 already funded.
She added that more than 1,001 projects were currently ongoing, while over 200 projects had been completed and commissioned across host communities.
In his remarks, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, called for deliberate and aggressive implementation of the country’s gas commercialisation programme to achieve Nigeria’s 2030 target of ending routine gas flaring.
“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.