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Pursuant to the Petroleum Industry Act 2021, the Nigerian Petroleum Regulatory Commission (NUPRC) has issued the Upstream Petroleum Decarbonisation Template (UPDT). The UDPT is a regulatory tool for promoting energy sustainability and environmental stewardship in Nigeria’s upstream operations. This is part of Nigeria’s commitment to net zero emissions by 2060 and in line with global energy transition plans. The UPDT will be implemented from 1 January 2025 as a mandatory component in applications for licences, permits, and approvals across upstream activities.
The UPDT aims to integrate decarbonisation strategies/plans into upstream operations including Field Development Plans (FDPs), wells, drilling & rig operations, and project/facility engineering with upstream operators setting measurable and timebound greenhouse gas reduction goals aligned with national emissions reduction targets. Upstream operators will also be required to demonstrate compliance with the Gas Flaring, Venting, and Methane Emissions Regulations, 2023 (the “Regulations”), and relevant guidelines, to eliminate routine gas flaring and venting.
Under the UDPT, 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 development of carbon management and monetisation initiatives, including Carbon Capture and Storage (CCS), nature-based solutions, carbon offset projects, etc are also incorporated under the UDPT to enhance the upstream sector’s environmental credentials, attract investment for sustainable energy projects, and ensure alignment with international environmental, social and governance (ESG) standards.
To ensure a successful implementation of the UDPT, the NUPRC will provide capacity building programmes and other support mechanisms which is billed to commence with an industry-wide decarbonisation workshop in the first quarter of 2025.
Lessees, licensees and stakeholders in the upstream sector are encouraged to adopt these strategies as a pathway to achieving long-term sustainability of Nigeria’s energy sector.
Contributor
Aaron Alasa – Associate