The Energy Republic September Edition

NIGERIA OIL AND GAS
NUPRC Outlines Cardinal Areas for Sustainable Gas,
Sets Up Teams for Gas Flare Commercialization
The Nigerian Upstream Petroleum
Regulatory Commission (NUPRC)
says it has placed focus on four
cardinal areas for sustainable gas
development and utilisation in the country.
The commission said that the four cardinal
areas were gas reserves growth, optimised
gas production, domestic gas utilisation and
gas flare elimination.
Mr Gbenga Komolafe, Commission’s Chief
Executive, NUPRC, made this known at the
2022 Society of Petroleum Engineers (SPE)
Nigeria Annual International Conference
and Exhibition (NAICE) on Monday in Lagos.
The conference had as its theme: “Global
Transition to Renewable and Sustainable
Energy and the Future of Oil and Gas in
Africa.”
Komolafe, represented by Mr Abel Nsa,
Head, National Oil and Gas Excellence
Centre (NOGEC), urged other African
countries to adopt suitable anchor points
and roadmaps similar to what had been
outlined by the commission.
According to him, this will enable them to
achieve the right energy mix while
d e c a r b o n i s i n g t h e i r o i l a n d ga s
development.
He noted that Nigeria had huge abundant
gas resources which had been adopted by
the country as its energy transition fuel.
Komolafe said the passage of the Petroleum
Industry Act (PIA) 2021 was aimed at
eliminating bottlenecks in the oil and gas
sector to attract more investments.
He said: “We are positioning gas as our
transition fuel while adopting phased down
approach in our energy transition quest
geared toward paying greater attention to
the development of untapped gas
resources.
“This energy source with low carbon
footprint would serve as the transition fuel
in meeting our energy security as a nation.
“Fortunately, several African countries
including Nigeria, Algeria, Mozambique,
Egypt and Libya, among others are blessed
with huge gas reserves.
“With a total of over 620 trillion cubic feet of
natural gas reserves and 125.3 billion
barrels of crude oil, the future of upstream
oil and gas in Africa is promising.”
Komolafe, however, noted that it required
the right legislative framework and a change
in policy direction for maximum economic
recovery and energy sustenance.
He added that the PIA had generous fiscal
provisions aimed toward attracting
investment not just for oil development but
for harnessing of the rich gas potential of
the nation which was among the highest in
the world.
In a recent news published by Nigerian
Tribune, the Nigerian Upstream Petroleum
Regulatory Commission (NUPRC), has
inaugurated a 12-member committee to
drive and coordinate the Flare Gas
Commercialisation Programme. The
programme is an initiative of FG to end gas
flaring by 2025.
Gas flaring in the oil and gas industry has
continued to be a menace which needs to
be eradicated because of its adverse effect
on the environment and the people.
The wasteful disposal of natural gas is not
o n l y f r a u g h t w i t h s e r i o u s
health/environmental consequences but is
also a major resource waste and value
erosion to the country.
Chief Timipre Sylva
Gbenga Komolafe, Commission’s Chief Executive, NUPRC
This is contained in a statement issued and
signed by Engr Gbenga Komolafe, the
Commission’s Chief Executive at the
weekend in Abuja.
According to him, monetising gas resources
is a positive step towards guaranteeing
energy security, especially in the global
energy transition period.
He stressed the need for Nigeria to ensure
that it harnesses all available gas resources
for value creation.
He also announced that NUPRC is
recommencing the process of issuing flare
sites to technically competent companies,
following a competitive bid process.
“This process has become crucial in view of
the policy direction of the Federal
Government to ensure all gas resources are
developed for National development,” he
said.
He further added that the Commission was
currently carrying out a study in conjunction
with external technical resources to identify
suitable flare sites for the auction process.
The steering committee members are K.O.
Ofoegbu and O.I. Anyanechi; while A.T.
Adeyiga, J.O. Ogunsola, J.C. Anyanwu, A.O.
Okwah, O.E. Oje, N.E. Odega, K. R. Abisoye,
J. C. Echendu, C. I. Chukwukaelo and G. L.
Umoru form the programme team.
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THE ENERGY REPUBLIC I SPECIAL EDITION