The House of Representatives Speaker, Rep. Tajudeen Abbas, has set up an Ad hoc Committee to probe the reported $9.05 billion revenue loss from gas flaring over the past decade in Nigeria.
During the committee’s inauguration on Monday, Abbas urged its members to thoroughly investigate the reasons behind gas flaring and propose solutions to put an end to this detrimental practice.
He emphasized that the investigation is crucial to recognizing and addressing the pressing environmental, social, and economic consequences associated with gas flaring.
“The task before this ad hoc committee is a very critical one that lies at the heart of the health of our people and the economic well-being of our nation.
“You have been charged with the responsibility of investigating, perhaps, one of the most harmful practices in the oil and gas industry in Nigeria.
“Gas flaring and venting have been a significant environmental, economic, health, and social concern in our country for many years.
“The flared gas represents lost revenue that could have been generated through its sale or utilization. Offical records indicate that we lose about 2.5 billion dollars annually to gas flaring,” he said.
He stated that gas flaring, being a significant contributor to climate change and environmental degradation, has both direct and indirect impacts on soil, water, and wildlife.
The Speaker emphasized that gas flaring results in a considerable waste of valuable resources, as it represents a precious energy source that could be harnessed for various essential purposes, including electricity generation, heating, and industrial processes.
Earlier, the committee’s Chairman, Rep. Babba Munir (APC-Kaduna State), reassured that the committee members were dedicated to representing the interests of all Nigerians.
He noted that despite various commitments by oil companies to end gas flaring, the issue has persisted for decades.
“We are here to give everyone a fair hearing, to know where the loopholes are, and where we need to tweak our laws to ensure we get optimal results.
“We do not have to revisit how important it is to our revenue drive needed for infrastructure, security, education, and health.
“It is a win-win situation for even the oil companies because if revenues are generated, they are spent on securing our nation and on infrastructure that will improve their operations.
“We are insisting and putting our feet down that all agencies of government and oil companies
“Once you are invited, we expect you to come with your full submissions and with the highest representation of your organization,” he said.
The committee has summoned several companies and regulatory bodies to appear before them on Tuesday at 10 a.m. The invited entities include Total/Mobil V Domestic wing, Total/Oando JV, Total Energies, African Petroleum Pic. (now Ardova PLC), Azman Oil and Gas Limited, Matrix Oil And Gas Shata Ltd, Nigerian Electricity Regulatory Commission, National Council on Climate Change, Nigerian Petroleum Development Company, Yinka Folawiyo Petroleum Company (Aje Oil Field-Offshore), Sterling Oil Exploration & Energy, Belemaoil Producing Limited, Walter Smith Petroman Oil Limited, Green Energy International Limited, Millenium Oil and Gas Company Limited, Folawiyo Energy, Eroton Exploration and Production Nigeria Limited, and Niger Delta Petroleum Resources Ltd.
According to a report by the Nigerian Oil Spill Detection and Response Agency, Nigeria lost N891 billion to gas flaring over the course of 18 months.
Based on data from NOSDRA as of August 8, 2022, Nigeria suffered a total financial loss of N891 billion. In 2021, the loss amounted to N707 billion, and in the first half of 2022, it reached N184 billion.
According to the NOSDRA report, oil and gas companies operating in Nigeria flared approximately 126 billion standard cubic feet of gas in the first half of 2022, resulting in a financial loss of $441.2 million (approximately N183.54 billion) during that six-month period.
The agency’s data further revealed that in 2021, about 23,862.271 barrels of oil (equivalent to 3,770,238.864 liters or 119 tanker trucks) were spilled.
Breaking down the gas flaring statistics for the first half of 2022, NOSDRA disclosed that offshore oilfields contributed to 62.2 billion SCF of gas flaring, while onshore operations accounted for 63.9 billion SCF of gas flaring, valued at $223.6 million.
In 2021, there were 382 publicly reported oil spills. Of these, 33 were not investigated by a joint team, and 122 did not have estimates of the amount of oil spilled given by the companies involved.
The report indicated that two major oil spills occurred in 2021, with over 250 barrels spilled into inland waters and over 2,500 barrels spilled on land, swamps, shorelines, and the open sea.
Additionally, there were seven medium oil spill incidents in 2021, involving 25 to 250 barrels spilled into inland waters, or 250 to 2,500 barrels spilled on land, swamps, shorelines, and the open sea.
