The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Dr. Oritsemeyiwa Eyesan, has warned that awardees of gas flare sites risk losing their permits if they fail to utilise the sites.
Speaking during a working visit to the Minister of State for Petroleum Resources (Gas), Dr. Ekperikpe Ekpo, in Abuja, Dr. Eyesan Eyesan said that the commission would evaluate each award one year after it was granted to determine whether significant progress had been made.
The statement by Eniola Akinkuotu, Head, Corporate Communications and Media of the NUPRC said that Eyesan, had during the meeting, presented an update on the Nigerian Gas Flare Commercialisation Programme (NGFCP).
“Where there is insufficient progress, the commission will take appropriate regulatory action, including revocation of the award where necessary,” she said.
She said that despite initial resistance from some operators, the NGFCP had continued to make significant progress.
According to her, 43 gas flare sites were initially identified for award, with 27 sites successfully awarded so far.
“Implementation efforts are ongoing,” she said.
Eyesan disclosed that Nigeria currently has over 215 trillion cubic feet (TCF) of proven gas reserves and an estimated total reserve base of about 600 TCF.
“These resources provide a strong foundation for power generation, industrialisation, exports and broader economic development,” she said.
On host community development, Eyesan said that the Petroleum Industry Act (PIA) introduced the Host Community Development Trust framework to address longstanding concerns in host communities and promote sustainable development.
She said that available data indicated that the implementation of the trusts had contributed to reductions in oil theft and oil spills, while improving relationships between operators and host communities.
Eyesan said that 173 Host Community Development Trusts had so far been incorporated, with 147 funded.
She added that over 1,001 projects were currently ongoing, while over 200 projects had been completed and commissioned across host communities.
Responding, the minister called for deliberate and aggressive implementation of the Nigerian 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 move toward productive resource utilisation,” the minister said.
GIK/APA