By Adewale Sanyaolu
The Federal Government is to spend about $3 billion in capital investment to fund various projects under the Nigerian Gas Flare Commercialization Programme. (NGFCP) which targets to create 300,000 jobs.
The $3 billion expenditure is tied to the process for the 2024 oil bid round aimed at boosting activities in the oil and gas sector.
The NGFCP seeks to attract investments and develop a transparent market mechanism through a competitive procurement process for allocating gas flares, under clear and transparent criteria, to competent third-party investors using proven technologies in commercial applications globally.
The programme is an opportunity for Government, industry, State Government, ethnic nationalities, and local communities to work together to resolve an oil field unacceptable practice.
The $3 billion expenditure is tied to the process for the 2024 oil bid round aimed at boosting activities in the oil and gas sector.
Government is offering of 12 oil blocks alongside seven deep offshore blocks from last year’s bid round.
Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, dropped the hint in his presentation at the inaugural NEITI House Dialogue in Abuja.
Komolafe while disclosing government’s ambitious targets, announced plans to infuse $3 billion in capital investment to fuel projects under the NGFCP which will lead to the creation of 300,000 jobs.
Highlighting the potential socio-economic impact of the flare gas commercialization programme, Komolafe projected substantial benefits, including the provision of clean energy to six million households through Liquefied Petroleum Gas (LPG) and the elimination of 20 million tons of carbon dioxide emissions annually.
Additionally, he anticipated the unlocking of 600,000 metric tons of LPG per year and the generation of 2.5 gigawatts of power from new and existing Independent Power Producers (IPPs).
Providing deeper insights into the bid round, Komolafe detailed the offerings, which include six acreages on the continental shelf, four deep offshore blocks, and two onshore blocks in the Niger Delta region.
He assured stakeholders of a fair and competitive bidding process, underpinned by stringent regulations aimed at ensuring regulatory certainty, dismantling entry barriers, and fostering global competitiveness.
“The licencing round that we are putting in place is designed to enhance the quality data set and it is going to be conducted in a fair, and competitive bidding process in a non-discriminating manner,” he said.
Emphasizing the criteria for block acquisition, Komolafe outlined the importance of technical competence, financial capacity, and viability. He also shared the Commission’s financial performance, noting a commendable 15 per cent increase in revenues to N4.344 trillion in 2023.
He outlined various initiatives introduced by the Commission to enhance crude oil production, including expedited approvals of field development plans, adoption of cutting-edge technologies, reduction of unit technical costs, and transparent hydrocarbon metering and accounting practices.
Dr. Orji Ogbonnaya Orji, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), noted the importance of the NEITI House Quarterly Dialogue in facilitating constructive engagements among policymakers from Nigeria’s extractive industries.
He emphasized the pivotal role of the platform in addressing pertinent industry issues and promoting transparency and accountability across the sector.
