The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced a significant policy shift requiring oil operators to provide evidence of low carbon emissions as part of their applications for licences and permits. The new regulation, which takes effect on January 1, 2025, aligns with Nigeria’s broader climate commitments, including achieving net zero emissions by 2060.
Decarbonisation Template Becomes Mandatory
Gbenga Komolafe, CEO of NUPRC, revealed this initiative during the presentation of the upstream petroleum decarbonisation template. The policy, rooted in the Petroleum Industry Act (PIA) of 2021, aims to integrate sustainability into Nigeria’s upstream oil and gas operations.
“This policy strengthens the decarbonisation agenda, enhancing Nigeria’s global competitiveness and investment appeal amidst the energy transition,” Komolafe stated.
Key Requirements for Oil Operators
Effective January 2025, the Upstream Petroleum Decarbonisation Template (UPDT) will be a mandatory component for all upstream oil and gas licence applications. Key aspects include:
- Integration of Decarbonisation Plans: Operators must incorporate greenhouse gas reduction strategies into field development, drilling, and project engineering.
- Compliance with Methane Regulations: Adherence to the 2023 Gas Flaring, Venting, and Methane Emissions Regulations is required to eliminate routine flaring and venting.
- Methane Management Programs: Companies must implement leak detection, energy-efficient technologies, and renewable energy integration.
- Carbon Management Initiatives: Operators are encouraged to explore carbon capture, storage, and monetisation projects.
Driving Sustainable Energy Investments
Komolafe emphasized that the measures are not intended to create regulatory barriers but to position Nigeria’s upstream sector as a sustainable and attractive energy hub. The UPDT aligns with global Environmental, Social, and Governance (ESG) standards, ensuring continued access to funding as the energy industry transitions to low-carbon solutions.
“These steps aim to enhance the sector’s environmental credentials, attract sustainable investments, and support operational excellence,” Komolafe explained.
Capacity Building and Industry Support
To ease the implementation process, the NUPRC plans to provide capacity-building programs, including an industry-wide decarbonisation workshop in Q1 2025. The commission remains committed to supporting operators in achieving long-term sustainability while maintaining compliance with global energy transition mandates.
The Path Ahead
The adoption of this policy represents a pivotal moment for Nigeria’s oil and gas sector, signaling its readiness to embrace low-carbon practices. Operators are urged to align their operations with the nation’s climate goals, leveraging the decarbonisation template as a roadmap for sustainable growth and investment attraction.
