Dublin, Ireland — Nigeria lost $705.4 million, about N289.658 billion, in ten months as oil and gas firms operating in the country flared 201.5 billion standard cubic feet, SCF, of gas between January and October 2021, according to data obtained from the National Oil Spill Detection and Response Agency, NOSDRA.
The NOSDRA report disclosed that the total gas flared in the 10-month period is capable of generating 20,200 gigawatts hour, GWh, of electricity and equivalent to 10.7 million tonnes of carbon dioxide emission.
The oil spill agency further stated that the oil firms are expected to pay the Federal Government penalties of $403.1 million, an equivalent of N165.525 billion.
Giving a breakdown of the gas flare volume, NOSDRA reported that oil firms operating onshore flared 104.3 billion SCF in the 10-month period under review, while 97.3 billion SCF of gas was flared offshore.
Furthermore, the agency explained that the 104.3 billion SCF of gas flared onshore was equivalent to revenue loss of $364.9 million, about N149.839 billion; penalties payable of $208.5 million, an equivalent of N85.616 billion.
The gas flared offshore also has power generating potential for 10,400 gigawatts hours and is equivalent to carbon dioxide emission of 5.5 million tonnes.
Specifically, NOSDRA noted that in January, February, March, April and May 2021, 21.44 billion SCF, 15.55 billion SCF, 14.08 billion SCF, 14.13 billion SCF and 4.42 billion SCF of gas was flared onshore, respectively, while 8.51 billion SCF, 11.75 billion SCF, 2.1 billion, 3.47 billion SCF and 8.79 billion SCF of gas was flared in June, July, August, September and October 2021, respectively.
On the other hand, the 97.3 billion SCF of gas flared offshore translated to a loss of $340.5 million, an equivalent of N139.82 billion; carbon dioxide emissions of 5.2 million tonnes; power generating potential of 9,700 gigawatts hours and penalties payable is $194.6 million, about N79.91 billion.
Further breakdown showed that 18.33 billion SCF, 11.07 billion SCF, 10.09 billion SCF, 6.55 billion SCF and 8.99 billion SCF of the commodity was flare offshore in January, February, March, April and May 2021, while in June, July, August, September and October 2021, respectively, 6.72 billion SCF, 3.53 billion SCF, 11.78 billion SCF, 8.77 billion SCF and 11.64 billion SCF of gas.