IN THE SHADOWS OF OIL AND GAS FLARES:
Images of host communities in the Niger Delta region.
By Udeme Akpan & Obas Esiedesa
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued Permits to Access Flare Gas to 28 successful awardees under the Nigerian Gas Flare Commercialisation Programme (NGFCP), marking a pivotal shift from environmental liability to economic opportunity in Nigeria’s upstream petroleum sector.
The Commission awarded the permits to the winners at the official ceremony titled “Permit to Access Flare Gas Issuance” held on Friday, December 12, 2025, in Abuja.
The successful awardees are: Ace Energy Limited; Afagaf Company Limited; AGH Lero; Almina Resources Limited; Amazon Energy Limited; AUT Energy; Beluga Asiko; Bodej Investment Limited; Cainergy Limited; Cimcmonobuo Nigeria Limited; Dawcon Consortium; Dawnwatch Limited; Fargab Limited; Folstaj International Limited; Geospectra Energy Limited; Izzi Project Limited; and MMLet Energy Limited.
Others are: MSN Consortium; Newgaz Integrated Services Limited; NG Lyon Construction Limited; Oaks Cluster Energy; Seal Energy Limited; Tecnis EPS International Limited; Teobell International; Terms Energies; Zipora Gas; and Stelog Gas Company Limited.
The permit issuance marks a major milestone in NUPRC’s quest to utilise flare gas and move Nigeria towards achieving its net-zero target.
The Commission Chief Executive (CCE), Engr. Gbenga Komolafe, said the issuance of the Permit to Access Flare Gas (PAFG) under the 2022 NGFCP signifies the transition from legacy challenges to market-driven solutions that unlock economic opportunities, strengthen energy security, reduce emissions and improve operational efficiency across the industry.
The CCE stated that the permit aligns with the Presidential ambition and Nigeria’s carbon-reduction goals. He said the Commission is “pleased to announce that 28 awardees have fully executed the required suite of commercial agreements, which include the Connection Agreements, Milestone Development Agreements, and Gas Sales Agreements; and now qualify to receive the Permit to Access Flare Gas.
“These entities represent a strong blend of operational capability, financial readiness, and technological competence. To all our flare site awardees soon to become Permit Holders, I offer warm congratulations,” the CCE said.
He added that the award aligns with the vision of President Bola Ahmed Tinubu for the country to harness hydrocarbon resources, as reflected in the Executive Orders issued in 2024.
“Allow me to express deep appreciation to His Excellency, President Bola Ahmed Tinubu, GCFR. His reform-driven leadership and commitment to enabling the petroleum sector continues to shape the strategic direction of our work at NUPRC.
“The Presidential Executive Orders on NAG fiscal incentives and tax rebates, local content directives and cost efficiency demonstrate his emphasis on investment competitiveness for the sector,” he noted.
He explained that the NGFCP was redesigned after the enactment of the Petroleum Industry Act (PIA) and refined for transparency, commercial viability, and global competitiveness.
“From 300 initial expressions of interest, 139 applicants qualified for the RFP stage. Following a competitive and transparent evaluation process, 42 successful bidders were awarded 49 flare sites, an achievement widely recognized for its integrity and rigour,” the NUPRC boss said.
On the benefits of the award, Engr. Komolafe said the programme is expected to reduce carbon dioxide by six million tonnes yearly, attract US$2 billion in investments, and create over 100,000 jobs.
The NUPRC boss stated: “A total of 49 flare sites have been auctioned. Forty-two (42) bidders have been awarded the sites. Between 250 and 300 mmscfd of currently flared gas will be captured and commercialised, eliminating approximately six (6) million tonnes of carbon dioxide (CO₂) annually.
“The programme is expected to attract up to US$2 billion in investment. More than 100,000 direct and indirect jobs will be created. About one hundred and seventy thousand (170,000) metric tons of LPG will be produced annually, enabling clean energy access for approximately 1.4 million households. And nearly 3GW (gigawatts) of power generation potential will be unlocked.”
He disclosed that an NGFCP Forum and College of Awardees has been established to support project implementation and knowledge exchange.
He also revealed that the NUPRC has deepened engagement with international financiers and technology partners.
The CCE said it is important to note that although the issuance of this permit is significant, it only signals the start of the implementation phase.
He noted that while the competitive bid process may now be complete, the real work has just begun.
“Engineering, construction, financing, commissioning must begin in earnest. Be assured however, that the Commission remains fully committed to providing the needed regulatory support for the awardees and now Permit Holders to meet their timelines and obligations,” he added.
To ensure disciplined execution, the CCE said the Commission will closely monitor the implementation of milestone development agreements, conduct regular performance reviews, and proactively address emerging barriers.
This approach supports Nigeria’s broader ambition for a cleaner, more resilient energy system and enhances the competitiveness of the upstream petroleum sector.
Vanguard News