By Obas Esiedesa, Abuja    

The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, yesterday directed companies operating in the   oil and gas industry to take measurable steps to reduce of greenhouse emissions in the industry. 

The Commission in a policy template on decarbonisation and energy sustainability in Nigerian upstream oil and gas sector signed by the Commission Chief Executive, Engr Gbenga Komolafe said the template will become a mandatory component of applications for licences, permits, and approvals across upstream activities, commencing in January 2025.

He noted that the Upstream Decarbonisation Template, UPDT will make the Nigerian operating environment sustainable and competitive.  

Komolafe explained that the regulation will “strengthen the Decarbonisation and Sustainability Agenda of Nigeria’s Upstream Oil & Gas operations to enhance its global competitiveness and foster investment attractiveness of the sector, amidst global energy transition imperatives”.    

  “To this end, UPDT requires licensees and lessees to reduce greenhouse gas emissions, adopt low-carbon technologies, implement energy efficiency measures, and incorporate renewables in their operations. By implementing these, the Commission ensures compliance with Nigeria’s broader climate objectives, including its commitment to Net Zero by 2060. 

He disclosed that the template “mandates the integration of decarbonisation strategies/plans into upstream operations including Field Development Plans (FDPs), wells, drilling & rig operations, and project/facility engineering.   

“Operators would therefore establish measurable and time bound greenhouse gas reduction goals aligned with national targets. Companies are also required to demonstrate compliance with the Gas Flaring, Venting, and Methane Emissions Regulations, 2023, and related Guidelines, to eliminate routine flaring and venting in their operations. 

“Additionally, operators must implement methane management programmes such as leak detection and repair, optimise operations using energy-efficient technologies, and integrate renewable energy sources into their projects and operations. The UPDT also stipulates the development of carbon management and monetisation initiatives, including Carbon Capture and  Storage (CCS), nature-based solutions, carbon offset projects, etc”, he added.  

  Komolafe pointed out that “rather than constituting a regulatory hurdle, these measures are designed to enhance Nigeria’s upstream sector’s environmental credentials, attract sustainable energy investments, and ensure alignment with international Environmental, Social, and Governance (ESG) standards. 

“By embedding sustainability at the core of upstream operations, the Commission aims to enable continued access to funding for projects amidst the global shift towards low-carbon energy solutions”.