Oil firms flare 116BSCF gas, burn N169bn in 5 months

DNigeria lost $407.3 million, about N169.44 billion in five months, as oil and gas companies operating in the country flared 116.4 billion Standard Cubic Feet (SCF) of gas between January and May 2022, according to data released by the National Oil Spill Detection and Response Agency, NOSDRA.

NOSDRA, in its gas flare report for the five months period, noted that the volume of gas flared had the potential of generating 11,600 gigawatts hour of electricity and led to 6.2 million tonnes of carbon dioxide emissions.

The companies are also liable for fines totalling $232.7 million, about N96.8 billion; which according to NOSDRA, are hardly ever collected.

NOSDRA’s analysis of the gas flared in the period revealed that in January 2022, a total of 29.97 billion SCF of gas was flared by the companies; in February, 27.12 billion SCF was flared; while in March, April and May, 16.49 billion SCF, 21.48 billion SCF and 21.3 billion SCF were flared respectively.

Furthermore, NOSDRA stated that the majority of the defaulting firms in the months under review, operated in onshore oil fields, flaring 59 billion SCF of gas, valued at $206.5 million, about N85.9 billion.

NOSDRA noted that the gas flared by companies operating onshore was capable of generating 5,900 gigawatts hour of electricity, equivalent to 3.1 million tonnes of carbon dioxide emissions; while the firms were liable for penalties of $118 million, about N49.09 billion.

Giving a breakdown of gas flared onshore in the five months period of 2022, the oil spill and gas flare watchdog disclosed that in January, February and March, 19.14 billion SCF; 14.03 billion SCF and 10.49 billion SCF of gas were flared, respectively; while 6.63 billion SCF and 8.72 billion SCF of gas was flared in April and May 2022, respectively.

On the other hand, NOSDRA reported that oil and gas companies operating offshore flared 57.4 billion SCF of gas, valued at $200.7 million, about N83.49 billion; capable of generating 5,700 gigawatt hours of electricity; engendered 3.0 million tonnes of carbon dioxide emissions; and attracted fines of $114.7 million, about N47.72 billion.