By Abiodun Folarin
WorldStage– The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has warned the 27 beneficiaries of Nigeria’s flare gas commercialisation programme that their awards could be revoked if they fail to demonstrate sufficient progress in utilising the flare gas sites.
The Commission disclosed that of the 43 flare gas sites originally identified for award under the Nigerian Gas Flare Commercialisation Programme (NGFCP), only 27 have so far been successfully awarded, with implementation efforts ongoing.
The Commission Chief Executive, NUPRC, Mrs. Oritsemeyiwa Eyesan, disclosed this during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in Abuja.
Speaking at the meeting, Eyesan presented an update on the implementation of the NGFCP, stressing that awardees would be subjected to performance evaluation.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Eyesan said.
“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary,” she added.
According to her, despite initial resistance from some operators, the NGFCP has continued to record significant progress.
She noted that 43 flare gas sites were initially identified for award, while 27 have successfully been awarded, with implementation currently ongoing.
Eyesan said 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 the Petroleum Industry Act (PIA) introduced the Host Community Development Trust framework to address longstanding concerns in host communities and ensure that petroleum resources are utilised for sustainable development.
According to her, available data indicate that the implementation of the trusts has resulted in significant reductions in oil theft and oil spills, while fostering more harmonious relationships between operators and host communities.
She further disclosed that significant progress had been recorded in the implementation of the initiative.
“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 called for a deliberate and aggressive implementation of Nigeria’s gas commercialisation programme to ensure that the country achieves its 2030 target of eliminating 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.
