NUPRC threatens oil firms with sanctions over unutilised gas flare sites

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By Obas Esiedesa, Abuja

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has threatened to sanction companies awarded flare gas sites under the Nigerian Gas Flare Commercialisation Programme (NGFCP) if they fail to make significant progress in utilising the sites.

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The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, disclosed this in Abuja during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo.

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A statement by the Commission’s Head of Corporate Communications and Media, Eniola Akinkuotu, said Eyesan, who presented an update on the implementation of the NGFCP, disclosed that the Commission would evaluate the performance of awardees one year after the award was granted.

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According to the statement, “One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress.

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“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary.”

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The NUPRC chief said the NGFCP had continued to record significant progress despite initial resistance from some operators.

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According to her, 43 flare gas sites were initially identified for award under the programme, with 27 sites successfully awarded so far and implementation efforts ongoing.

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Eyesan said Nigeria currently had more than 215 trillion cubic feet (TCF) of proven natural gas reserves and an estimated total reserve base of about 600 TCF.

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She also said the country’s vast gas resources provided a strong foundation for power generation, industrialisation, exports and broader economic development.

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In his remarks, Ekpo called for a deliberate and aggressive implementation of the country’s gas commercialisation programme to ensure Nigeria meets its 2030 target of eliminating routine gas flaring.

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The minister said Nigeria must move away from allowing gas resources to be wasted through flaring and instead convert them into products and services that would contribute to economic development.

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“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,” Ekpo stated.

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