Nigeria’s Upstream Sector to Embrace Decarbonisation in 2025
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the implementation of a mandatory Upstream Petroleum Decarbonisation Template (UPDT), effective January 2025, to drive compliance with Nigeria’s climate commitments, including its Net Zero target by 2060.
This new directive, revealed in a statement by the Commission Chief Executive, Gbenga Komolafe, on Tuesday, underscores the country’s ambition to harmonise its upstream petroleum operations with global energy transition priorities.
Mandating Sustainability in the Oil Sector
Komolafe stated that the policy aligns with provisions of the Petroleum Industry Act (PIA) of 2021, which mandates the promotion of sustainable practices within the sector.
“The purpose of this policy is to strengthen the Decarbonisation and Sustainability Agenda of Nigeria’s Upstream Oil & Gas operations,” Komolafe explained. “It aims to enhance global competitiveness and attract investment in the sector amid growing energy transition imperatives.”
The UPDT will require operators in the upstream petroleum sector to adopt robust measures, including greenhouse gas reduction, low-carbon technologies, energy efficiency strategies, and renewable energy integration into their operations.
A Step Toward Global Standards
The UPDT builds on the 2023 “Regulatory Framework for Energy Transition, Decarbonisation, and Carbon Monetisation,” positioning Nigeria’s upstream industry to compete in global energy markets while ensuring adherence to international Environmental, Social, and Governance (ESG) standards.
Operators will need to incorporate decarbonisation strategies into all facets of their activities, including field development plans, drilling operations, and facility engineering. Compliance with the Gas Flaring, Venting, and Methane Emissions Regulations, 2023, will also be mandatory, with operators required to eliminate routine flaring and venting while implementing methane management programs.
Balancing Regulation and Opportunity
The NUPRC emphasised that the new regulations are designed to foster, not hinder, operational excellence and investment attractiveness.
“These measures are not regulatory hurdles,” Komolafe assured. “Instead, they are designed to enhance environmental credentials, attract sustainable energy investments, and enable continued access to project funding amidst the global shift towards low-carbon solutions.”
To support a smooth transition, the NUPRC will offer capacity-building programs and technical guidance, starting with an industry-wide decarbonisation workshop in the first quarter of 2025.
Towards a Greener Future
The commission’s initiative reaffirms its commitment to aligning Nigeria’s oil and gas sector with international climate goals while ensuring long-term energy security and economic growth.
“With these efforts, the NUPRC aims to embed sustainability at the core of upstream operations, enabling the sector to thrive in the evolving global energy landscape,” Komolafe concluded
