NUPRC Threatens Revocation Of Idle Flare Gas Permits

The Nigerian Upstream Petroleum Regulatory Commission has warned that companies sitting on flare gas commercialisation permits could lose their awards if they fail to develop the sites.

NUPRC chief executive Oritsemeyiwa Eyesan gave the warning during a working visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.

Eyesan said the regulator reviews each award one year after it is granted to check whether the operator has made enough progress. Where progress is inadequate, she said the commission can take regulatory action, including revoking the award.

The warning affects sites under the Nigerian Gas Flare Commercialisation Programme, which is meant to cut routine gas flaring and turn wasted gas into economic use. The commission said 43 flare gas sites were initially identified and 27 had so far been awarded to investors.

Daily Post reported that Eyesan also cited Nigeria’s gas reserves, putting proven reserves at more than 215 trillion cubic feet and the estimated total reserve base at about 600 trillion cubic feet. She said 173 Host Community Development Trusts had been incorporated, with 147 funded and more than 1,001 projects underway.

Sources: Punch, Vanguard, Daily Post