Ike Amos
Dublin, Ireland — Nigeria loses $598.7 million, about N453.515 billion in eight months, as oil and gas companies operating in the country flared 171.1 billion standard cubic feet (SCF) of gas between January and August 2023, according to a report by the National Oil Spill Detection and Response Agency (NOSDRA).
NOSDRA, in its latest gas flare report, disclosed that the volume of gas flared in the eight-month period was 16.28 per cent higher compared with the $342.1 million, about N390.037 billion lost to gas flaring in the same period in 2022, using Central Bank of Nigeria’s current exchange rate of N757.5 to a dollar.
It added that the gas flared in the period under review has the potential of generating 17,100 gigawatts hour (GWh) of electricity; while it emitted 9.1 million tonnes of carbon dioxide (CO2) into the atmosphere.
In addition, it noted that the offending companies were liable for penalties of $342.1 million, about N251.141 billion, adding, however, that a large chunk of the penalties were never collected by the Federal Government.
In comparison, the oil spill remediation agency stated that between January and August 2022, the oil firms flared 147.1 billion SCF of gas, valued at $514.9 million, about N390.037 billion; were liable for penalties of $294.2 million, about N222.857 billion; had power generation potential of 14,700 GWh of electricity, while it was equivalent to carbon dioxide emissions of 7,800 tonnes.
Giving a breakdown of the gas flared in the different oil operating areas between January and August 2023, NOSDRA disclosed that oil companies operating offshore accounted for 54.4 per cent of total gas flared, with 93.0 billion SCF of gas, causing the country to lose $325.6 million, about N246.642 billion.
In addition, the volume of gas flared by the firms emitted 4.9 million tonnes of carbon dioxide into the atmosphere and had a power generation potential of 9,300 GWh.
In comparison, in the same period in 2022, offshore companies flared 72.2 billion SCF of gas, which was equivalent to 3.8 million tonnes of carbon dioxide emission and had power generation potential of 7,200 GWh, while the gas flared was valued at $252.7 million, with penalties payable of $144.4 million.
On the other hand, between January to August 2023, oil companies operating onshore flared 78.0 million SCF of gas, representing 45.6 per cent of total gas flared in the period.
The gas flared by onshore oil companies was valued at $273 million, an equivalent of N206.798 billion; penalties payable of $156 million, about N118.17 billion; with power generation potential of 7,800 GWh and carbon dioxide emission of 4.1 million tonnes.
In the same period in 2022, companies operating in Nigeria’s onshore oil space caused Nigeria to lose $262.2 million, as they flared 74.9 billion SCF of gas, with power generation potential of 7,500 GWh, carbon dioxide emission of 4.0 million tonnes and penalties payable at $149.8 million.
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), 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.
