By Teddy Nwanunobi
There are strong indications that the Upstream Petroleum Regulatory Commission (NUPRC), may not likely take further excuses from oil majors operating in Nigeria for not meeting the 2030 gas flare out deadline.
The Commission said that it will stick to the timeline on gas flare out date, so as not to derail the Federal Government’s gas development initiatives.
As a result, the Commission advised major oil firms to take additional steps towards investing in gas gathering infrastructure and avoid sanctions that will follow any infractions.
“It is in this wise, that we urge you all to join hands with us in building confidence in the industry for robust investment”
According to a recent GlobalData report, Nigeria and other nations involved in such act, could lose up to $82 billion a year due to global gas flaring,
The report identified biggest gas flarers, accounting for over 87 per cent of all flared gas in 2020, to include Nigeria, Algeria, Angola, Indonesia, Iran, Iraq, Libya, Malaysia, Mexico, Russia, the US and Venezuela.
Though the Federal Government had pledged to end the burning of gas as a by-product of oil production by 2030, under its latest climate plan submitted to the United Nations, independent sources state that Nigeria flared an average of 11.1m3/bbl of gas last year.
Addressing members of the Oil Producers Trade Section (OPTS), in Lagos State, the Commission Chief Executive (CCE), of NUPRC, Engr. Gbenga Komolafe, said that the Commission would take into account key challenges facing operators with a view to creating an enabling environment to further grow the sector.
“Upon my assumption of office as the pioneer Chief Executive of the newly created (the) Nigerian Upstream Petroleum Regulatory Commission (NUPRC), I identified the Oil Producers Trade Section (OPTS) association as a critical stakeholder and partner in the development and operations of Upstream assets in the Nigerian Oil and Gas Industry,” Komolafe said.
He said it was against that backdrop that he decided to host the meeting in Lagos to reinforce his acknowledgment of their association and to solicit their collaboration as industry stakeholders.
“Therefore, our meeting is to formally unveil the NUPRC to you and to familiarise and identify with you as a regulator business enabler in upstream operations.
“This is coming at a critical point in the industry when the clamour from the global community is focused on energy transition from fossil fuels to cleaner energy which is competing with the need for enhanced revenue to fund critical infrastructure through monetisation of our hydrocarbon resources. On our part, NUPRC will remain committed to its mandate to optimise revenue for government and investors.” he said.
Komolafe said he expects the meeting to distill issues/challenges militating against their optimisation of project investments in key areas of the upstream sector.
“Permit me also to say that this is the first in the series of engagements with you as our vision is to build a 21st century regulator that will be fair, just and be a critical enabler in the upstream petroleum sector.
“It is in this wise, that we urge you all to join hands with us in building confidence in the industry for robust investment,” he said.
But responding to issues on reviewing the timeline on gas flare out date, head of NUPRC, Joseph Tolurunse said that the 2030 deadline remains sacrosanct, as operators have a nine-year opportunity to exit gas flare from their fields.
Tolurunse said that any other plan outside that would not only truncate national flare out plans, but would also discourage Nigeria’s Gas commercialisation programmes.