By Abdullahi Lukman
Nigeria’s upstream oil regulator has warned investors involved in gas-flare commercialisation projects that their awards could be revoked if development fails to make sufficient progress, as the government steps up efforts to eliminate routine gas flaring by 2030.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it would review awarded projects one year after approval and take regulatory action, including revocation, where investors fail to meet expected development milestones.
NUPRC Chief Executive Oritsemeyiwa Eyesan disclosed this during a briefing with the Minister of State for Petroleum Resources, Ekperikpe Ekpo.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Eyesan said.
She added that projects showing insufficient progress could face regulatory sanctions, including withdrawal of the award.
The move is part of efforts to accelerate the Nigerian Gas Flare Commercialisation Programme (NGFCP), which seeks to capture and commercialise natural gas that would otherwise be burned at oil-production facilities.
Eyesan said 27 of the 43 gas-flaring sites identified under the programme had been awarded to investors, with development work already in progress.
Nigeria is seeking to reduce gas flaring while converting wasted natural gas into an economic resource for power generation and industrial development.
The country has more than 215 trillion cubic feet of proven gas reserves and regards natural gas as an important fuel for supporting economic growth and its energy transition.
Eyesan said stronger enforcement was necessary to ensure that awarded projects translate into actual investment, employment and emissions reductions rather than remain inactive.
The regulator’s tougher stance underscores the government’s push to ensure investors move from project awards to implementation as Nigeria works towards its 2030 target for ending routine gas flaring.
