The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned beneficiaries of gas-flare site awards that they risk losing their concessions if they fail to demonstrate meaningful progress in utilising the sites.
The warning was issued by the Commission Chief Executive, Oritsemeyiwa Eyesan, during a meeting with the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.
Eyesan said the commission would evaluate beneficiaries one year after awards were granted to determine whether sufficient progress had been made.
Where operators fail to demonstrate adequate progress, she said the NUPRC could take regulatory action, including revoking the awards.
The warning forms part of efforts under the Nigerian Gas Flare Commercialisation Programme (NGFCP) to reduce routine gas flaring and encourage the commercial utilisation of gas resources.
According to the NUPRC, 43 flare gas sites were initially identified for award, with 27 already awarded to investors.
Nigeria has significant proven natural gas reserves, but persistent gas flaring has remained an environmental, economic and regulatory concern.
Commercialising flare gas could create additional energy and industrial opportunities while reducing the environmental impact associated with routine flaring.
Eyesan said the commission would continue monitoring the performance of awardees rather than allowing licences to remain inactive.
The latest warning signals a tougher regulatory approach towards investors who receive gas-flare opportunities but fail to move projects towards implementation.