NUPRC: Evidence of low carbon emissions now required for oil licence applications

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says operators will be required to provide evidence of low carbon emissions for applications of oil licences and permits from January 1. 

In a statement on Tuesday, Gbenga Komolafe, chief executive officer (CEO) of the NUPRC, said the move is to ensure compliance with Nigeria’s broader climate objectives, including its commitment to net zero by 2060.

Presenting the upstream petroleum decarbonisation template, Komolafe said the policy would become a requirement for issuing licences and permits effective January 2025.

The NUPRC boss said the decarbonisation template is in line with Section 6 (d),(g),(h),(i),(j),& (k) of the Petroleum Industry Act (PIA), 2021 and other provisions mandating the commission to promote sustainability measures.

“The purpose of this policy statement is to 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,” he said.

“The commission, in keeping with its mandate for technical, commercial, and operational monitoring of upstream oil and gas operations in Nigeria, has issued the Upstream Petroleum Decarbonisation Template to the industry as a regulatory tool.

“This template is one of the measures to promote energy sustainability and environmental stewardship in Nigeria’s upstream operations in alignment with Nigeria’s commitment to net zero emissions and the imperatives for global energy transition.

“Against the foregoing, this template will become a mandatory component of applications for licences, permits, and approvals across upstream activities, commencing in January 2025.

“The UPDT mandates the integration of decarbonisation strategies/plans into upstream operations including field development plans, 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.”

Komolafe said the UPDT would also stimulate the development of carbon management and monetisation initiatives, including carbon capture and storage, nature-based solutions, and carbon offset projects.

However, he said the new regulation is not designed to constitute 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 standards,” Komolafe added.

“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.”

ADOPTING POLICY FOR LONG-TERM SUSTAINABILITY

Komlafe also urged stakeholders to adopt the measures as a pathway to achieving long-term sustainability, operational excellence, and regulatory compliance while mitigating defunding and financing challenges.

He added that the commission would provide capacity-building programmes and other support mechanisms to facilitate seamless implementation, commencing with an industry-wide decarbonisation workshop in the first quarter  (Q1) of 2025.