By Adewale Sanyaolu

To ensure that the country records the gains of agreement reached at the recently concluded United Nations Conference of Parties (COP 26), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that it would henceforth ensure that all approved Field Development Plans(FDPs) incorporate full gas utilization and monetization progammes.

Before now, upstream investors concentrate more on oil exploration and production with little or no plans for gas development.

The development has led to a slow growth and retardation  of the gas sector with more oil firms, flaring gas than monetization same for the development of that critical industry capable of turning the country’s fortunes around.

The move to ensure a seamless energy transition agenda for the country was disclosed by the Commission Chief Executive (CCE), NUPRC, Mr. Gbenga Komolafe, at the 39th Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationist (NAPE) Annual International Conference and Exhibition, which ended in Lagos at the weekend.

He noted that, there is concerted effort by major stakeholders to secure commitment to limit greenhouse gas emission, adding that the global energy industry is progressively transiting from an energy mix dominated by fossil fuels in the last two decade to renewables.

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‘‘The recently held 26th Conference of the Parties (COP26) culminated in 31 statements covering various factors geared towards the achievement of the Paris Agreement and other protocols to limit global average temperature to 1.5oC. 

Among these statements is the pledge by developed nations to end offshore financing of “unabated” oil and gas projects, but with the exception of projects that include carbon capture and sequestration technology.

To this end,  he said NUPRC as a business enabler is committed to following initiatives that will ensure compliance with the above international objectives on clean energy which included;  to aggressively implement the Nigerian Gas Flare Commercialization Programme (NGFCP), ensure that all approved Field Development Plans (FDPs) incorporate full gas utilization and monetization programs,  introduce regulations that will ensure new E&P projects includes decarbonization elements to further attract foreign investments .

Others are; collaborate with NNPC Limited and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to encourage investment in refining and gas-based industries, collaborate with counterpart regulatory agencies within the Sub-Saharan region in order to create strong alliances that ensure sustainability and demand for our crude oil and refined products.

He maintained that against the challenge posed by energy transition, the regulatory focus of NUPRC will be targeted towards enabling sustained upstream investments, urging NAPE to take advantage of government incentivized environment to advise on policy initiatives that will add value to the upstream business.