Flare Gas Ownership and Legal Rights: Filling the Analytical Gap in Nigerian Petroleum Law

This study addresses an underanalysed question in Nigerian petroleum law: the legal ownership of associated gas that is currently flared at oil production facilities, and the implications of this ownership question for the commercial development of flare gas under the NGFCP and PIA 2021. Nigeria's gas flaring volumes represent a massive wasted commercial resource, yet the legal right to monetise flare gas at specific well locations remains analytically ambiguous in the existing legal literature. Using a doctrinal analytical methodology, the research examines oil prospecting licence and oil mining lease conditions, associated gas re-injection regulations, NGFCP bid process documents, and PIA 2021 gas ownership provisions. Comparative analysis draws on flare gas ownership frameworks from the United States and the United Kingdom, where case law has clarified the legal status of associated gas distinct from crude oil. Findings identify that Nigerian petroleum law does not clearly distinguish associated gas ownership from crude oil title, creating legal uncertainty for NGFCP investors. The study proposes a statutory definition of associated gas ownership and a licensing framework that clearly establishes rights for flare gas commercialisation projects. Keywords: flare gas ownership, petroleum law, NGFCP, Nigeria, associated gas.