YENAGOA: Nigeria’s upstream oil regulator has warned investors developing projects to capture and commercialise gas from oil-producing sites that they could lose their permits if they fail to make sufficient progress.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it will review awarded gas-flaring sites one year after permits are granted and may revoke awards where project development remains inadequate.
NUPRC Chief Executive Oritsemeyiwa Eyesan said stronger regulatory enforcement is aimed at ensuring investors deliver projects that generate economic value, create jobs and reduce emissions.
Under the Nigerian Gas Flare Commercialisation Programme, investors are being encouraged to capture gas that would otherwise be routinely burned at oil production facilities. The programme is part of Nigeria’s effort to reduce gas flaring and meet its target of ending routine flaring by 2030.
Of the 43 gas-flaring sites identified under the programme, 27 have so far been awarded to investors, with project development already under way, according to Eyesan.
Nigeria has more than 215 trillion cubic feet of proven natural gas reserves and considers gas an important source of energy for electricity generation and industrial development.
Why is Nigeria tightening enforcement on gas-flaring projects?
The government wants awarded projects to move beyond permits and translate into actual investment, employment and reductions in greenhouse gas emissions.
What happens to investors that fail to make progress?
The NUPRC said it can take regulatory action, including revoking project awards, after its one-year review if investors fail to demonstrate considerable progress.