Michael Eboh
Dublin, Ireland — Nigeria loses $637.4 million, about N1.045 trillion, to gas flaring in eight months, as oil and gas companies operating in the country flared 182.1 billion standard cubic feet (SCF) of gas between January and August 2024, data released by the National Oil Spill Detection and Response Agency (NOSDRA) has revealed.
NOSDRA, in its gas flare data for the eight-month period of 2024, noted that the amount lost to gas flaring between January and August 2024 was 6.23 per cent higher than the $600 million, about N984 billion, lost to flaring in the same eight-month period in 2023.
In particular, NOSDRA noted that the 182.1 billion SCF of gas flared between January and August 2024 emitted 9.7 million tonnes of carbon dioxide to the atmosphere; had power generation potential of 18,200 gigawatts-hour (GWh) of electricity, while the firms were liable for penalties of $364.2 million, about N597.288 billion, using current exchange realities of N1,640 to a dollar.
In contrast, in the same period in 2023, the oil firms flared 171.4 BSCF of gas valued at $600 million (N984 billion); with 9.1 million tonnes of carbon dioxide emission; having power generation potential of 17,100 GWh, with penalties payable of $342.8 million, about N562.192 billion.
Giving a breakdown of flare activities across the various segments of the industry, NOSDRA reported that companies operating in the onshore segment of the petroleum industry flared 95.8 BSCF of gas, representing 52.6 per cent of total gas flared in the eight-month period, and causing the country to lose $335.3 million (N549.892 billion).
The onshore firms were also liable for penalties of $191.6 million, about N314.224 billion; while their actions saw the emission of 5.1 million tonnes of carbon dioxide to the atmosphere, while the gas flared would have been able to generate 9,600 GWh of electricity.
In comparison, in the eight-month period of 2023, onshore companies flared 78.5 billion SCF of gas valued at $274.6 million (N450.344 billion); were liable for fines of $156.9 million (N257.316 billion); emitted 4.2 million tonnes of carbon dioxide, while the volume flared had power generation potential of 7,800 GWh.
On the other hand, companies operating in the country’s offshore space caused the country to lose $302.1 million (N495.444 billion) between January and August 2024, as they flared 86.3 BSCF of gas, representing 47.4 per cent of total gas flared in the period under review.
The volume of gas flared offshore had power generation potential of 8,600 GWh; emitted 4.6 million tonnes of carbon dioxide in the atmosphere; while the offending firms were liable for penalties of $172.6 million, about N283.064 billion.
In the same period of 2023, NOSDRA stated that 93 BSCF of gas flared offshore, was valued at $325.3 million (N533.492 billion); had power generation potential of 9,300 GWh and attracted fines of $185.9 million (304.876), monies hardly collected from the offending firms.
NOSDRA listed the offending companies as Shell Petroleum, Development Company (SPDC), Nigerian Petroleum Development Company (NPDC), Chevron Nigeria, Mobil Oil, Elf Petroleum Nigeria, Nigeria Agip Oil Company (NAOC), Addax Petroleum, Texaco Overseas (Nigeria), Esso Exploration and Production Nigeria, Allied Energy Resources, Ultramar Petroleum, Atlas Petroleum; Cromwell, Afric Oil and Marketing, Famfa Oil, Moni Pulo, and South Atlantic Petroleum, among others.
These companies flared gas from Oil Mining Leases (OML) 04, 05, 11, 13, 14, 17, 18, 22, 28, 23, 24, 38, 40, 42, 43, 72, 49, 54, 90, 95, 67, 70, 104, 59, 99, 100, 101, 102 and Oil Prospecting Licences 222, 316 and 306, among others.
