The Nigerian Upstream Petroleum Regulatory Commission has introduced the Upstream Petroleum Decarbonisation Template, which will be mandatory for obtaining licenses and permits starting in January 2025.
This initiative aims to ensure that the petroleum sector aligns with Nigeria’s climate goals, including its commitment to achieving Net Zero emissions by 2060.
Thee Commission Chief Executive, Gbenga Komolafe, made this disclosure in a statement on Tuesday in Abuja.
Komolafe stated that the decarbonisation template aligns with Section 6 (d), (g), (h), (i), (j), and (k) of the Petroleum Industry Act, 2021 (PIA), as well as other provisions requiring the commission to implement and promote sustainability initiatives.
The NUPRC boss “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 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.”
Komolafe stated that the commission is intensifying efforts to align the upstream petroleum industry with national priorities and global climate goals while ensuring sustainable value creation from oil and gas resources to support Nigeria’s energy security and economic development.
The commission further explained that the Upstream Petroleum Decarbonisation Template (UPDT) mandates licensees and lessees to reduce greenhouse gas emissions, adopt low-carbon technologies, implement energy efficiency measures, and integrate renewable energy into 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, 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 noted that the UPDT also requires the development of carbon management and monetisation initiatives, such as carbon capture and storage, nature-based solutions, and carbon offset projects.
However, the NUPRC boss emphasized that the new regulation is not intended to create a regulatory burden.
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 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 embrace the measures as a pathway to achieving long-term sustainability, operational excellence, and regulatory compliance, while addressing defunding and financing challenges in the sector.
