Nigerian regulators require applicants for oil licenses to demonstrate low carbon emissions

The director of Nigeria’s upstream regulatory body announced on Tuesday that before approvals are given, applicants for oil licenses and permits will need to demonstrate evidence of low carbon emissions and a renewable energy program starting on Wednesday.

The Nigerian Upstream Petroleum Regulatory Commission’s chief executive, Gbenga Komolafe, stated that the policy was in line with the nation’s objective of having net zero carbon emissions by 2060.

To assist applicants, it released a template known as the Upstream Petroleum Decarbonization Template (UPDT).

According to Komolafe, enforcement will begin on January 1, 2025, and it will encompass all upstream sector permits, including divestitures.

“By this, 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 and gas resources for Nigeria’s energy security and economic development,” said Komolafe.

Additionally, the new requirement will force operators to use energy-efficient technologies to improve operations, integrate renewable energy sources into projects, and execute methane management programs including leak detection and repairs.