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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Friday, announced that it was targeting the monetisation of 50 per cent flared gas in the country through the Nigerian Gas Flare Commercialisation Programme (NGFCP).
Speaking when the leadership of the Human and Environmental Development Agenda (HEDA) visited him in his Abuja office, the Chief Executive of the commission, Gbenga Komolafe, stated that Nigeria has already achieved 60 per cent fugitive methane emission reduction target from oil and gas for the first time.
On assumption of office, he said he immediately set to work by gazetting 12 regulations in line with the provisions of the PIA 2021, with 13 others currently at different stages of being gazetted.
He stated that the NUPRC had been working with security agencies and other relevant entities of government to curb the menace of oil theft, which had almost crippled the sector.
According to him, the effort was already yielding results as Nigeria was witnessing increased production, while the commission has also developed regulations around proper and efficient accounting of crude oil production and advanced cargo declaration.
These, Komolafe said, were done to forestall leakages in revenues accruing to the government.
“Nevertheless, the federal government has declared gas as our transition fuel and the commission has so far made successful moves at converting flared gas into commercial gains.
Recently we offered 49 flare sites to preferred winners to monetise the flared gas and eliminate gas flaring.
“Also in pursuit of its investment promotion and value creation in the industry, the commission has pursued the NGFCP, accounting for the monetisation of approximately 50 per cent of gas currently being flared towards achieving Net Zero target.
“It has already achieved 60 per cent fugitive methane emission reduction target from Oil and Gas for the first time based on robust data provided by the NUPRC and has engaged the International Finance Corporation regarding opportunities surrounding Carbon Capture Utilisation and Storage (CCUS),” he stated.
In the area of energy transition, decarbonisation and carbon monetisation, the commission, Komolafe said had established an energy transition and carbon monetisation unit, formulated the regulatory framework for energy transition, decarbonisation and carbon monetisation in Nigeria’s Upstream Petroleum Sector.
In addition, he stressed that it had commenced the process for enabling carbon credits earnings through a defined framework for key climate action initiatives and related activities.
“Permit me to also inform you that in line with the PIA on Host Community Development, 124 Host Community Development Trusts (HCDT) have been incorporated.
“The commission with an Original Equipment Manufacturer (OEM) developed a digital portal, HostComply, to create an online platform to ease regulatory compliance and oversight functions for the regulator and enable the settlors to meet regulatory requirements in a timely, efficient, cost-effective manner as spelt out in the PIA.
“It is also meant to offer comfort to the Host Community Development Trust by providing a robust technology tool for them to interface and engage the settlors and professionally manage projects in their respective communities.
“This conforms to global ESG best practices and will foster an enabling environment for the seamless conduct of upstream operations,” he stated.
Komolafe said recent divestments by International Oil Companies (IOCs) have no doubt raised concerns among stakeholders, stating that as the regulator, it is NUPRC’s responsibility to ensure that these divestments are conducted fairly and transparently to benefit all parties, including the Nigerian people.
This, Komolafe said, led him to put stringent regulatory frameworks and guidelines subjected to thorough scrutiny and approval by the commission to govern the divestment process.
According to him, this was to ensure transparency, accountability and adherence to global best practices.
“We have established mechanisms to monitor and evaluate the performance of divested assets pre and post-transactions. This includes regular audit inspections and reviews to ensure that operators meet their obligations and that the divested assets are managed efficiently and responsibly,” he added.
Emmanuel Addeh
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