July 13, 2024

Nigeria attributes N662bn loss to gas flaring in 5 months

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Adewale Akintaro

Nigeria has reportedly lost $445.6 million, (about N661.716 billion), to gas flaring in five months, as oil and gas companies operating in the country flared 127.3 billion Standard Cubic Feet (BSCF) of gas between January and May 2024.

This was revealed by the National Oil Spill Detection and Response Agency (NOSDRA).

NOSDRA, in its gas flare data for the period, noted that the amount lost to gas flaring was 8.05 per cent higher than the $412.4 million, about N612.414 billion, lost to flaring in the same five-month period in 2023.

The oil spill tracking agency reported that the volume of gas flared in the five-month period of 2024 contributed 6.8 million tonnes of carbon dioxide emissions into the atmosphere, had power generation potential of 12,700 gigawatts hours (GWh); while the companies were liable of fines of $254.7 million, about N378.229 billion.

In contrast, in the period, January to May 2024, the oil firms flared 117.8 billion SCF of gas, valued at $412.4 million, an equivalent of N612.414 billion; contributing 6.3 million tonnes of carbon dioxide emission into the atmosphere; had power generation potential of 11,800 GWh; while the firms were liable for penalties of $235.6 million, about N349.866 billion.

Giving a breakdown of gas flared across the various segments of the oil and gas industry in the period under review, NOSDRA stated that companies operating in the country’s onshore oil space accounted for 50.67 per cent of total gas flared with 64.5 billion SCF of gas valued at $225.8 million, about N335.313 billion.

In addition, the onshore companies contributed greenhouse gases of 3.4 million tonnes of carbon dioxide to the atmosphere; had power generation potential of 6,500 GWh of electricity; while the companies were liable for penalties of $129 million, about N191.565 billion.

In comparison, in first five months of 2023, onshore oil firms flared 58.1 billion SCF of gas, which was valued at $203.5 million (N302.198 billion), had power generation potential of 5,800 GWh, emitted 3.1 million tonnes of carbon dioxide; while the companies were liable for penalties of $116.3 million (N172.706 billion).

Furthermore, NOSDRA stated that companies operating in Nigeria’s offshore oil space emitted 3.3 million tonnes of carbon dioxide and caused the country a loss of $219.9 million (N326.552 billion) from the flaring of 62.8 billion SCF of gas between January and May 2024, which also has power generation potential of 6,300 GWh; while the companies were liable for penalties payment of $125.6 million (N186.516 billion).

In contrast, the 59.7 billion SCF of gas flared from January to May 2023 by offshore companies had power generation potential of 6,000 GWh; contributed 3.2 million tonnes of carbon dioxide emission; was valued at $208.9 million (N310.217 billion), while the companies were liable for penalties of $119.4 (N177.309 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.

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