NUPRC: Awardees of Gas Flare Sites May Lose Unutilised Permits
• 27 of 43 locations successfully given out
•Says host community development trust curbed oil theft
Emmanuel Addeh in Abuja and Peter Uzoho in Lagos
Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said awardees of its flare gas sites could have their permits revoked if they do not utilise them.
NUPRC Chief Executive, Mrs. Oritsemeyiwa Eyesan, gave the warning during a working visit to Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.
Eyesan presented an update on the Nigerian Gas Flare Commercialisation Programme (NGFCP) at the meeting, a statement in Abuja yesterday by the commission’s spokesman, Eniola Akinkuotu, said.
Eyesan stated, “One year after an award has been granted, the commission conducts an evaluation to determine whether there has been considerable progress.
“Where there is insufficient progress, the commission will take appropriate regulatory action, including revocation of the award where necessary.”
According to her, despite initial resistance from some operators, NGFCP had continued to record significant progress. She stated that 43 flare gas sites were originally identified for award.
So far, 27 sites, she explained, had been successfully awarded, and implementation efforts were ongoing.
NUPRC said Nigeria currently had 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,” Eyesan said.
On host community development, Eyesan said the Petroleum Industry Act (PIA) introduced the Host Community Development Trust (HCDT) framework to address longstanding concerns in host communities and ensure that petroleum resources were utilised for sustainable development.
According to her, available data indicates that the implementation of the trusts has resulted in significant reductions in oil theft and oil spillage while fostering more harmonious relationships between operators and host communities.
She disclosed that significant progress had been recorded since 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 the country achieved its 2030 target of eliminating routine gas flare.
He stated, “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.”
