Ike Amos
Dublin, Ireland — Nigeria lost $1 billion, an equivalent of N891 billion to gas flaring in one year, as oil and gas companies operating in the country burnt 275.2 billion standard cubic feet (SCF) of gas in 2023, according to data released by the National Oil Spill Detection and Response Agency (NOSDRA).
In its gas flare report for the period, NOSDRA disclosed that the volume of gas flared in 2023 was 27.03 per cent higher than the volume flared in 2022.
According to the environmental watchdog, 224.9 billion SCF (BSCF) of gas was flared by the companies in 2022, valued at $787.2, an equivalent of N701.395 billion, using Central Bank of Nigeria’s (CBN) exchange rate of N891 to a dollar.
NOSDRA noted that the 275.2 billion SCF of gas flared in 2023 emitted 14.6 million tonnes of carbon dioxide into the atmosphere; has power generation potential of 27,500 gigawatts hours (GWh), while the offending companies were liable for penalties of $550.4 million, an equivalent of N490.406 billion.
In 2022, the 224.9 billion SCF of gas flared had power generation potential of 22,500 GWh; was equivalent to 11.9 million tonnes of carbon dioxide emission; while the offending firms were liable of penalties of 449.8 million, about N400.772 billion.
Giving a breakdown of the volume of gas flared across segments in the petroleum industry, NOSDRA noted that companies operating in the country’s onshore oil space accounted for 44.95 per cent of total volume flared in the year, with 123.7 billion SCF of gas.
It added that the volume flared by onshore oil companies was valued at $432.8 million, about N385.625 billion; was capable of generating 12,400 GWh of electricity; led to the emission of 6.6 million tonnes of carbon dioxide; while the companies were liable for fines of $247.3 million, about N220.344 billion.
On the other hand, companies operating at oil fields offshore, accounted for 55.09 per cent of total gas flared, with 151.6 billion SCF of gas; which saw the emission of 8.1 million tonnes of carbon dioxide; was capable of generating 15,200 GWh of electricity.
The volume of gas flared by companies offshore was valued at 530.4 million (472.586 billion), while the companies were liable for penalties of $303.1 million, about N270.062 billion.
Some of the offending companies, according to NOSDRA include 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.
