Ike Amos
Dublin, Ireland — Nigeria lost $412 million, about N310.446 billion, to gas flaring in five months, as oil and gas firms operating in the country flared 117.7 billion standard cubic feet (SCF) of gas from January to May 2023, according to latest data released by the National Oil Spill Detection and Response Agency (NOSDRA).
In its gas utilisation report, NOSDRA stated that the amount loss to gas flaring between January and May 2023 was 1.13 per cent lower compared with the loss of $407.4 million, about N306.98 billion, in the same period in 2022.
The oil spill reporting and remediation agency further stated that the volume of gas flared in the review period was equivalent to 6.3 million tonnes of carbon dioxide emissions; has power generation potential of 11,800 gigawatt-hour of electricity, while the companies are liable to payment of $235.4 million, about N117.376 billion, as fines.
In comparison, NOSDRA noted that in the first five months of 2022, oil and gas firms flared 116.4 billion SCF of gas valued at $407 million, about N306.98 billion; which is equivalent to 6.2 million tonnes of carbon dioxide emission; capable of generating 11,600 gigawatts-hour (Gwh) of electricity; while the companies were liable for penalties of $232.8 million, about N175.417 billion.
Giving a breakdown of volume of gas flared in different segments of the petroleum industry between January to May 2023, NOSDRA stated that companies operating onshore flared 58 billion SCF of gas valued at $203.1 million, with power generation potential of 5,800 Gwh; carbon dioxide emission capabilities of 3.1 million tonnes and penalties payable at $116 million.
In particular, 12.391 billion SCF of gas, 12.110 billion SCF, 12.569 billion SCF, 9.463 billion SCF and 11.485 billion SCF of gas were flared, respectively, in January, February, March, April and May 2023.
On the other hand, NOSDRA reported that offshore oil and gas companies flared 59.7 billion SCF of gas, valued at $208.9 million, about N157.408 billion, was equivalent to 3.2 million tonnes carbon dioxide emissions and capable of generating 6,000 Gwh of electricity; while the companies were liable for fines of $119.4 million, about N89.969 billion.
Specifically, in January, February, March, April and May 2023, 10.805 billion SCF, 15.009 billion SCF, 13.305 billion SCF, 7.347 billion SCF, and 13.221 billion SCF of gas was flared, respectively.
Some of the offending companies, according to NOSDRA include Shell Petroleum Development Company, who recorded gas flaring from Oil Mining Leases (OML) 11, 13, 14, 17, 18, 22, 23, 26, 28, 30 and 39 among others; Nigerian Agip Oil Company (NAOC), which reported gas flaring from OML 61, 62; and Chevron Nigeria which recorded gas flaring from OML 49, 54, 95, among others.
Other companies, NOSDRA stated, include Mobil Producing Nigeria, Nigerian Petroleum Development Company (NPDC), Addax Petroleum Limited, Famfa Oil and Elf Petroleum, among others.
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