The Federal Government has concluded plans to impose a $49m (N22bn) fine on oil and gas firms over gas flaring across the country.
The companies operating onshore will be fined the sum for flaring 24b Standard Cubic Feet of gas valued at about N40b ($86m) between January and February 2023.
This was contained in the latest gas flare data by the National Oil Spill Detection and Response Agency (NOSDRA), which stated that the companies will pay the penalties for violating the gas flaring rule.
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“Companies operating onshore flared 24.5 billion SCF of gas valued at $85.8 million, with $49 million penalties payable,” the agency reported.
NOSDRA listed the affected companies to include Shell Petroleum Development Company, which recorded gas flaring from Oil Mining Leases 11, 13, 14, 17, 18, 22, 23, 26, 28, 30 and 39 among others; Nigerian Agip Oil Company which reported gas flaring from OML 61, 62; and Chevron Nigeria which recorded gas flaring from OML 49, 54, 95, among others.
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Also affected are Mobil Producing Nigeria, Nigerian Petroleum Development Company, Addax Petroleum Limited, Famfa Oil and Elf Petroleum, and others.
While gas is burnt off or flared during the oil production process, the Federal Government continue to lead campaigns for its monetisation against flaring.
The affected companies are said to have flared 19.14 billion SCF of gas in January and 14.04 billion SCF of gas in February 2023, which contributed to 1.3 million tonnes of carbon dioxide emission, which is is equivalent to the generation of 2,500 gigawatts hours of power.
Also, offshore companies flared 25.8 billion SCF of gas valued at $90m; which is capable of generating 2,600 gigawatts hours of electricity with an equivalent of 1.4 million tonnes of carbon dioxide emission.
The agency said offshore companies flared 10.84 billion SCF and 13.09 billion SCF of gas in January and February, 2023 respectively. However, NOSDRA did not state how much fine the offshore companies would pay for the flare.
NOSDRA said a total of 50.3 SCF gas was flared in the period under review, which amounted to about N81bn ($176m) lost in the months under review.
The volume of gas flared in both months was 11.9 per cent lower than the 57.1 billion SCF of gas flared in the same period in 2022.
The oil spill remediation agency said the companies are liable for penalties of $101m, about N46b for flaring gas equivalent to carbon dioxide emission of 2.7 million tonnes, which has power generation potential of 5,000 gigawatts hour of electricity in the period under review.
The agency further lamented that gas has consistently been flared in Nigeria since the 1950s, releasing carbon dioxide and other gaseous substances into the atmosphere that has inflicted environmental and health challenges in oil producing areas.
Currently, companies producing more than 10,000bpd pay a fine of $2 per 1000 Standard scf of gas flared, while those producing less than 10,000 bpd pay $0.5 per 1000bpd.
