NUPRC threatens to revoke gas flare site awards over non-utilisation

The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has cautioned gas flare site operators under the Nigerian Gas Flare Commercialisation Programme (NGFCP) that their permits may be revoked if they fail to utilize the awarded sites within a year. NUPRC Chief Executive Oritsemeyiwa Eyesan made the warning during a visit to the Minister of State for Petroleum Resources, Gas, Ekperikpe Ekpo, in Abuja.

The commission will evaluate each award one year after issuance to assess the operators' progress. Should insufficient progress be observed, the commission reserves the right to revoke the award, including through revocation, if necessary. Despite initial pushback from some operators, Eyesan asserted that the NGFCP has continued to make strides, with 27 out of 43 identified gas flare sites already awarded and the ongoing implementation efforts.

Nigeria currently holds more than 215 trillion cubic feet (TCF) of proven gas reserves, with an estimated total reserve base of about 600 TCF, positioning the nation for enhanced power generation, industrialization, and exports. In terms of host community development, the Petroleum Industry Act's Host Community Development Trust framework has been instrumental in reducing oil theft and spills while fostering better relations between operators and host communities.

So far, 173 Host Community Development Trusts have been established, with 147 receiving funding, over 1,001 projects underway, and more than 200 completed and commissioned. Minister Ekpo urged for swifter implementation of gas commercialisation initiatives to help Nigeria attain its goal of ceasing routine gas flaring by 2030, emphasizing the need to transition from environmental pollution to productive resource utilization.