The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has awarded flare sites to 42 companies operating in the petroleum sector as part of the 2022 Nigerian Gas Flare Commercialisation Programme (NGFCP). Among these, 38 companies have received 40 flare sites for standalone development, while four entities were awarded nine sites to be developed as clusters. The NUPRC has also granted reserve bidder status to certain companies in case preferred bidders fail to meet stipulated terms and conditions.
Key Points:
- 42 companies in the petroleum sector have been awarded flare sites in the NGFCP.
- 38 companies received 40 flare sites for standalone development, and four entities were awarded nine sites for cluster development.
- Reserve bidder status has been granted to some companies as a contingency measure.
- The NGFCP was re-launched in 2022 to align with the Petroleum Industry Act and current economic realities.
- The success of the NGFCP bid process is attributed to focused engagements with various stakeholders.
Analysis: The awarding of flare sites under the NGFCP marks a significant step towards reducing gas flaring in Nigeria. By engaging with a wide range of stakeholders, the NUPRC has created an environment conducive to investment and participation. The re-launch of the NGFCP in line with the Petroleum Industry Act demonstrates a commitment to aligning policies with industry needs. The awarded companies are now tasked with executing viable projects that will effectively harness flared gas, contributing to a more sustainable and efficient petroleum sector in Nigeria.
