Oil firms flare N264bn gas in 10 months

Gas flaring ublin, Ireland -Nigeria continues to

loss of revenue from its oil and gas resources, as companies operating in the country’s petroleum industry flared 170.5 billion standard cubic feet, BSCF, of gas in 10 months, between January and October 2022, according to latest data released by the National Oil Spill Detection and Response Agency, NOSDRA.

NOSDRA put the value of total gas flared in the ten-month period at $596.9 million. Using the Central Bank of Nigeria’s, CBN, current official exchange rate of N443 to a dollar, this translates to a loss of N264.427 billion potential revenue to Nigeria.

The oil spill remediation authority also disclosed that the defaulting companies were liable to fines totaling $341.1 million, an equivalent of N151.107 billion, which it said are hardly paid by the companies.

NOSDRA further stated that the volume of gas flared in the tenmonth period under review was equivalent to carbon dioxide emission of 9.1 million tonnes; and had power generation potential of 17,100 gigawatts hour, GWh.

Giving a breakdown of the volume of gas flared across oilfields, NOSDRA reported that companies operating in Nigeria’s offshore oil fields flared 86.8 billion standard cubic feet of gas valued at $303.9 million (N134.628 billion).

It added that carbon dioxide emissions from the volume of gas flared offshore was 4.6 million tonnes; while its power generation potential was 8,700 gigawatts-hour of electricity.

Specifically, in January, February, March, April, May and June 2022, 10.83BSCF, 13.09BSCF, 6.003BSCF, 14.85BSCF, 12.58BSCF and 4.81BSCF of gas were flared, respectively; while 3.73BSCF, 6.3BSCF, 7.3BSCF and 7.34BSCF of gas were flared in July, August, September and October 2022, respectively.

In addition, the agency stated that the companies which flared gas offshore were liable for fines of $173.6 million, an equivalent of N76.905 billion, for the volume of gas flared.

On the other hand, companies operating onshore caused the country loss of $293 million, about N129.799 billion, and were liable for $167.4 million (N74.158 billion) fines, for flaring 83.7 BSCF of gas in the ten-month period, January to October 2022.

Specifically, 19.14BSCF, 14.03BSCF, 10.49BSCF, 6.63BSCF, 8.72BSCF, 4.87BSCF and 5.58BSCF of gas were flared in January, February, March, April, May, June and July 2022, while in August, September and October 2022, 5.39BSCF, 3.34BSCF and 5.52BSCF of gas were flared

IKE AMOS

Kfinyeasr,i

respectively.

Some of the oilfields from which gas flaring was detected, according to NOSDRA, are Oil Mining Leases, OMLs, 11, 13 and 14, operated by Shell Petroleum Development Company, SPDC; OML 63 and Oil Prospecting Licences, OPLs, 316 and 209, operated by Nigeria Agip Oil Company, NAOC; OMLs 64 and 111, operated by Nigerian Petroleum Development

Company, NPDC; OPL 209, operated by Esso Exploration and Production Nigeria Limited; and OPL 216, operated by Famfa Oil Limited.

Others are OML 49, operated by Chevron Petroleum Nigeria Limited; OML 70, operated by Mobil Producing Nigeria; OMLs 100, 101 and 102 (Elf Petroleum Nigeria); and OML 86 (Texaco Overseas (Nigeria) Petroleum Company), among others.