Michael Eboh
Dublin, Ireland — Nigeria lost $520.2 million, an equivalent of N833.881 billion to gas flaring in six months, as oil and gas firms operating in the country flared 148.6 billion Standard Cubic Feet (BSCF) of gas in the first half of 2024, the National Oil Spill Detection and Response Agency (NOSDRA) has revealed.
In its gas flare report for the first half of 2024, NOSDRA stated that amount lost to gas flaring in the first half of 2024 was 7.06 per cent higher than the $485.9 million, about N778.898 billion, lost to the activity in the same six-month period in 2024.
According to the environmental protection and remediation agency, the volume of gas flared in the first half of 2024 contributed 7.9 million tonnes of carbon dioxide emissions into the atmosphere, had power generation potential of 14,900 Gigawatts hour (GWh); while the companies were liable for penalties of $297.3 million, about N476.572 billion.
In comparison, 138.8 billion Standard Cubic Feet (BSCF) of gas was flared in the first half of 2024, valued at $485.9 million, about N778.898 billion, led to the emission of 7.4 million tonnes of carbon dioxide; had power generation potential of 13,900 GWh, while the offending firms were liable for penalties of $277.7 million, an equivalent of N445.153 billion, using current exchange rate realities of N1,603 to a dollar.
Giving a breakdown of gas flared across different segments of the oil and gas industry in the first half of 2024, NOSDRA reported that companies operating onshore flared 75.5 billion SCF of gas, valued at $264.1 million (423.352 billion), representing 50.7 per cent of total amount lost to gas flaring in the country.
In addition, the agency noted that due to gas flared by companies onshore in the period under review, 4.0 million tonnes of carbon dioxide were emitted into the atmosphere; while the volume of gas flared had power generation potential of 7,500 GWh, with the offending companies liable for penalties of $150.9 million (N241.893 billion).
In comparison, in the first half of 2023, onshore oil firms flared 64.4 billion SCF of gas valued at $225.3 million (N361.156 billion), with penalties payable of $128.7 million (N206.306 billion); carbon dioxide emission of 3.4 million tonnes and had power generation potential of 6,400 GWh.
Conversely, 49 per cent of the amount lost to gas flaring was caused by the companies operating offshore, who flared 73.2 billion SCF of gas, valued at $256.2 million (N410.689 billion), with penalties payable at $146.4 million (N234.679 billion); greenhouse gas emission of 3.9 million tonnes of carbon dioxide and power generation potential of 7,300 GWh.
Comparatively, in the first half of 2024, offshore companies caused the companies a loss of $260.7 million, about N417.902 billion, with carbon dioxide emission of 4.0 million tonnes; power generation potential of 7,400, penalties payable at $149 million (N238.847 billion), all from the flaring of 74.5 billion SCF of gas.
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 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.
