The Nigerian Upstream Petroleum Regulatory Commission has released the Upstream Petroleum Decarbonisation Template (UPDT) which will become a requirement for issuing licenses and permits effective January 2025.
The move is targeted at ensuring compliance with Nigeria’s broader climate objectives, including its commitment to Net Zero by 2060.
This was disclosed on Tuesday in a statement by the Commission chief executive (CCE), Gbenga Komolafe.
The NUPRC boss said the decarbonisation template is in line with Section 6 (d),(g),(h),(i),(j),& (k) of the Petroleum Industry Act, 2021(PIA) and other provisions mandating the commission to promote sustainability measures.
Komolafe said, “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.
“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 (UPDT) 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.
The CCE said the Commission is deepening its efforts to align the upstream petroleum industry with national priorities and international climate goals while ensuring sustainable value creation from oil & gas resources for Nigeria’s energy security and economic development.
The commission explained that UPDT requires licensees and lessees to reduce greenhouse gas emissions, adopt low-carbon technologies, implement energy efficiency measures, and incorporate renewables in their operations.
“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 (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 NUPRC said the UPDT also stipulates the development of carbon management and monetisation initiatives, including Carbon Capture and Storage (CCS), nature-based solutions, carbon offset projects.
But the CCE said the new regulation is not designed to constitute a regulatory hurdle.
He said, “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.”
Komolafe urged stakeholders to adopt the measures as a pathway to achieving long-term sustainability, operational excellence, and regulatory compliance whilst mitigating defunding and financing challenges.
He added, “In addition to technical guidance, the Commission will provide capacity building programmes and other support mechanisms to facilitate seamless implementation, commencing with an Industry-Wide Decarbonisation Workshop in Quarter 1 2025.
“With these efforts, the Commission reaffirms its business-enabling posture and commitment to ensuring that Nigeria’s upstream oil and gas industry thrives in the evolving global energy landscape.”