Nigeria Gas Flaring and Methane Abatement Playbook for Upstream Operators

Executive Analytical Scope & Summary

Core Strategic Deliverables Included

1. 01

   Chapter 1: Regulatory Overview and Compliance Context

   This chapter outlines the statutory framework governing gas flaring and methane emissions, as set forth by PIA 2021 Sections 104-107 and the 2023 Regulations. It clarifies the roles and jurisdictional authority of the NUPRC, highlighting the regulatory objectives aimed at environmental preservation and energy transition.

2. 02

   Chapter 2: Flare Elimination and Monetisation Plan (FEMP)

   Comprehensive guidelines for the development, submission, and approval of Flare Elimination and Monetisation Plans as mandated by PIA 2021 Section 104(2-7). This chapter details the obligatory timeline of six months from regulation commencement for submission and the structural elements required within the FEMP.

3. 03

   Chapter 3: Permit System and Access to Flare Gas

   An analytical breakdown of the permit requirements, including Data Access Permits and Permits to Access Flare Gas, per the 2023 Regulations Part III. Focuses on application processes, durations, and the implications of permit revocations under Section 7 and related subregulations.

4. 04

   Chapter 4: Penalties and Flare Reporting Protocols

   Exploration of the financial and administrative penalties stipulated under the 2023 Regulations Parts IV and V, including the $2.00/Mscf penalty for unauthorized flaring. Discusses the comprehensive reporting obligations for gas data, production logs, and annual reporting demands.

5. 05

   Chapter 5: Commercialization Bidding Rounds

   Strategic insights into the competitive bidding process for gas commercialization rights under the NGFCP. This section elucidates procedural requirements for participation and the statutory right of the Commission to take gas at flare points under competitive terms.

6. 06

   Chapter 6: Methane Monitoring and Environmental Obligations

   Focuses on the monitoring requirements for fugitive methane emissions as prescribed by the 2023 Regulations Part IV. Outlines the framework for maintaining FMED logs and the integration of methane data into broader gas data submissions to the Commission.

7. 07

   Chapter 7: Decommissioning, Abandonment, and Environmental Funds

   Critical examination of the decommissioning responsibilities and financial instruments, such as the Decommissioning and Abandonment Fund, required for compliance with the 2023 Regulations Part V. Reviews the obligations related to environmental remediation contribution and fund establishment.