Data from the National Oil Spill Detection and Response Agency (NOSDRA) reveals that the Federal Government incurred losses of approximately N843 billion due to gas flaring between January 2022 and August 2023. According to NOSDRA’s latest gas flare report, oil and gas companies operating in the country flared 147.1 billion SCF of gas valued at $514.9 million (approximately N390 billion based on the Central Bank of Nigeria’s exchange rate of N757.5 to a dollar) during the same period in 2022. In the corresponding period in 2023, these companies flared 171.1 billion standard cubic feet of gas, valued at about $599 million (equivalent to N453 billion). This cumulative data reveals a total loss of approximately N847 billion between the same period in the previous year and the current year.
According to the report, the volume of gas flared in the eight months this year was 16.28 percent higher than in 2022.
It added that the gas flared in the first eight months of this year could generate 17,100 gigawatts/hour of electricity; while it emitted 9.1 million tons of carbon dioxide into the atmosphere.
In addition, it noted that the offending companies were liable for penalties of $342m, about N251bn, adding, however, that a large chunk of the penalties was never collected by the Federal Government.
In comparison, the oil spill remediation agency stated that between January and August 2022, the oil firms were liable for penalties of about $294m (N223bn) and that the gas lost had a power generation potential of 14,700 GWh of electricity, while it was equivalent to carbon dioxide emissions of 7,800 tonnes.
Some of the offending companies, according to NOSDRA include Shell Petroleum, Development Company, Nigerian Petroleum Development Company, Chevron Nigeria, Mobil Oil, Elf Petroleum Nigeria, Nigeria Agip Oil Company, Addax Petroleum, Texaco Overseas (Nigeria), Cromwell and South Atlantic Petroleum, among others.
These companies flared gas from Oil Mining Leases 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 Licenses 222, 316 and 306, among others.
The report comes on the heels of FG’s pledge to the United Nations in 2020, to attain zero gas flare by 2060, ten years after the UN’s 2050 target.
