Oil Firms Flare 139bscf of Gas Valued at N374bn in 6-Months
Despite dwindling financial resources, high cost of living and rising hardship among Nigerians, the country lost $485.3 million, about N374.166 billion, to gas flaring in six months, as oil and gas companies operating in the country burnt 138.7 billion standard cubic feet (SCF) of gas in the first half of 2023, according to latest data released by the National Oil Spill Detection and Response Agency (NOSDRA).
Over the years, Nigeria had suffered immense losses to gas flaring, especially in the area of environmental pollution and loss of revenue. The gas flared would have been harnessed for a number of purposes, such as electricity generation, as well as for industrial and domestic use.
NOSDRA, in its gas flare report for the six months period, disclosed that the amount lost to gas flaring in the first half of 2023 was 9.97 per cent higher than the $441.3 million, about N340.242 billion, lost to flaring in the same period in 2022.
Apart from equivalent amount lost to flaring, NOSDRA reported that the offending companies were liable to pay penalties of $277.3 million, about N213.798 billion, using current exchange realities of about N771 to a dollar.
The oil spill watchdog also stated that the volume of gas flared in the first six months of 2023 was equivalent to carbon dioxide emission of 7.4 million tonnes; while it had power generation potential of 13,900 gigawatts hour (GWh).
In comparison, in the first half of 2022, oil and gas firms flared 126.1 billion SCF of gas valued at $441.3 million, about N340.242 billion; with power generation potential of 12,600 GWh, an equivalent of 6.7 million tonnes of carbon dioxide emission, while the companies were liable to pay penalties of $252.1 million, about N194.369 billion.
Giving a breakdown of gas flared across different locations in the first half of 2023, NOSDRA disclosed that oil firms operating offshore flared 74.5 billion SCF of gas valued at $260.7 million, about N200.99 billion, an equivalent of 4.0 million tonnes of carbon dioxide emission, with power generation potential of 7,400 GWh, while the companies are liable for penalties of $149 million, about N114.879 billion.
Specifically, the companies operating offshore flared 10.805 billion SCF of gas, 15.009 billion SCF and 13.305 billion SCF of gas in January, February and March 2023, while in April, May and June 2023, the companies flared 7.347 billion SCF, 13.22 billion SCF and 14.794 billion SCF of gas.
On the other hand, the agency noted that companies operating at onshore oil fields cost the country a loss of $224.6 million, about N173.167 billion, as they flared 64.2 billion SCF of gas, with penalties payable at $128.4 million, about N98.996 billion, equivalent carbon dioxide emission of 3.4 million tonnes and power generation potential of 6,400 GWh.
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In particular, in January, February and March 2023, the companies operating onshore flared 12.391 billion SCF, 12.11 billion SCF and 12.569 billion SCF of gas, while 9.463 billion SCF, 11.485 billion SCF and 6.165 billion SCF of gas was flared in April, May and June 2023.
According to the NOSDRA report, some of the offending companies include Shell Petroleum Development Company, Nigerian Agip Oil Company (NAOC), Chevron Nigeria Limited, Mobil Producing Nigeria, Nigerian Petroleum Development Company (NPDC), Addax Petroleum Limited, Famfa Oil and Elf Petroleum, among others, who flared gas from their various oilfields both onshore and offshore.
