The Federal Government says it is targeting the monetization of 50 percent flared gas in the country through the Nigerian Gas Flare Commercialization Programme.
Chief Executive of Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, stated this when the leadership of the Human and Environmental Development Agenda visited him in his Abuja office, on Friday.
Komolafe also disclosed that Nigeria has already achieved a 60 per cent fugitive methane emission reduction target from oil and gas for the first time.
The NUPRC boss said immediately he assumed office; he commenced work by gazetting 12 regulations in line with the provisions of the PIA 2021 to ensure smooth operation of the industry. He added that 13 others are currently at different stages of being gazetted.
On the issue of oil theft and other crises bedeviling the sector, he said the NUPRC had been working with security agencies and other relevant entities of government to curb the menace which had almost crippled the sector.
He stated that the efforts were already yielding results as the country has started witnessing increased crude oil production.
To forestall leakages in revenues accruing to the government, Komolafe said the commission has developed regulations around proper and efficient accounting of crude oil production and advanced cargo declaration.
Speaking of efforts by NUPRC to generate revenue for the government, Komolafe said the commission recently offered 49 flare sites to preferred winners to monetize the flared gas and eliminate gas flaring.
“In pursuit of its investment promotion and value creation in the industry, the commission has pursued the NGFCP, accounting for the monetization of approximately 50 per cent of gas currently being flared towards achieving the Net Zero target.
“It has already achieved a 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 monetization, the commission, Komolafe said, had established an energy transition and carbon monetization unit and formulated the regulatory framework for energy transition, decarbonisation and carbon monetization in Nigeria’s Upstream Petroleum Sector.
In addition, he stressed that it had commenced the process of enabling carbon credit 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 have been incorporated.
“The commission with an Original Equipment Manufacturer developed a digital portal, HostComply, to create an online platform to ease regulatory compliance and oversight functions for the regulator and enable the settlers 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 settlers 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 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.
