Oil firms to pay N85.7bn for gas flaring
Some oil-producing companies in Nigeria are expected to pay penalties of $184.6 million (aboutN85.7 billion) for breaching the gas flaring laws in the first quarter of this year, according to a recent report by National Oil Spill Detection and Response Agency (NOSDRA).
The report noted that oil and gas companies operating in Nigeria flared 92.3 million standard cubic feet of gas, mscf, estimated at N150.8 billion, between January and April 2023.
In the same period in 2022, the 73.6 billion SCF of gas flared, led to carbon dioxide emissions of 3.9 million tonnes and had a power generation potential of 7,400 GWh of electricity.
It also noted that the volume of gas flared in the four months is equivalent to 4.9 million tonnes of carbon dioxide emission and has a power generation potential of 9,200 gigawatts of electricity per hour.
On a month-on-month basis, the report noted that in January, February, March and April, 23.2 mscf, 27.1 mscf, 25.9 mscf and 16.1 mscf of gas were flared, respectively.
Giving a breakdown of gas flared across different sectors of the petroleum industry in the first three months of 2023, NOSDRA stated that companies operating offshore flared 39.1 billion SCF of gas, valued at $136.9 million (N63.119 billion), were liable for penalties of $78.2 million (N36.05 billion); saw 2.1 million tonnes of carbon dioxide (CO2) emissions and had power generation potential of 3,900 GWh of electricity.
Specifically, NOSDRA disclosed that in January, February and March 2023, 10.805 billion SCF, 15.009 billion SCF and 13.305 billion SCF of gas were flared, respectively
