NUPRC THREATENS TO WITHDRAW INACTIVE GAS-FLARING PERMITS

The Nigerian Upstream Petroleum Regulatory Commission has warned investors operating under the country’s gas-flaring commercialisation programme that their licences could be revoked if they fail to make meaningful progress on their projects. The regulator said the move is part of efforts to accelerate the reduction of routine gas flaring and ensure that awarded projects do not remain inactive. 

NUPRC Chief Executive, Oritsemeyiwa Eyesan, disclosed the enforcement position during a briefing with the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo. She explained that the commission reviews awarded sites one year after approval to determine whether developers have made sufficient progress, adding that licences may be withdrawn where investors fail to meet expectations. 

The regulatory action is linked to the Nigerian Gas Flare Commercialisation Programme, which seeks to stop the wastage of gas routinely burnt at oil production facilities by encouraging investors to capture and commercialise the resource. The programme is expected to reduce emissions while creating additional economic opportunities from Nigeria’s gas resources. 

Eyesan said investors have so far secured 27 of the 43 gas-flaring sites identified under the programme, with development work already ongoing on the awarded locations. The commission’s position is aimed at ensuring that investors who obtain the rights to develop the sites move quickly from award to actual project implementation. 

The NUPRC said the enforcement of development timelines is also intended to unlock the economic value of Nigeria’s estimated 215 trillion cubic feet of proven gas reserves. By reducing flaring and encouraging the commercial use of associated gas, the government expects the sector to support new investments, job creation and cleaner energy solutions while working towards its target of ending routine gas flaring by 2030.