The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned companies awarded gas flare sites that their permits will be revoked if they fail to show immediate progress in utilising the sites.
The Commission’s Chief Executive (CCE), Mrs Oritsemeyiwa Eyesan, issued the directive during a visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo. The move is designed to ensure that companies holding these rights actually invest in the necessary infrastructure to capture and commercialise gas, rather than allowing the resource to be wasted through flaring.
This crackdown follows concerns regarding the slow pace of gas commercialisation despite numerous site awards. The NUPRC aims to reclaim unutilised sites to reallocate them to operators capable of meeting Nigeria’s domestic gas requirements and environmental obligations.
Driving gas commercialisation and environmental compliance
The warning comes at a critical time as the Nigerian government seeks to implement its “Decade of Gas” initiative. This policy framework is intended to position Nigeria as a leading gas producer and consumer, leveraging the resource to drive industrialisation and energy security. However, the continued practice of gas flaring remains a significant hurdle to these objectives.
By threatening gas flare beneficiaries with revocation over unutilised sites, the NUPRC is signalling a shift towards stricter enforcement of the Petroleum Industry Act (PIA). The regulator is monitoring the ability of awardees to transition from theoretical site rights to active gas-to-power or gas-to-industry projects.
Industry observers note that many awarded sites have remained dormant due to high capital expenditure requirements and logistical challenges in remote upstream locations. However, the Commission’s stance suggests that holding a permit without project commencement will no longer be tolerated. The regulator’s objective is to ensure that the gas released through flaring is instead integrated into the national gas value chain.
The meeting between Mrs Eyesan and Minister Ekpo also touched on the need for enhanced synergy between the NUPRC and the Ministry of Petroleum Resources (Gas) to streamline regulatory processes. The goal is to remove bottlenecks that prevent companies from moving from the licensing stage to full-scale production.
Companies currently holding awards for gas flare sites are expected to provide updated timelines and evidence of investment to avoid the loss of their licences. The NUPRC has indicated that it will conduct further assessments to determine which sites meet the criteria for continued ownership.
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