By Milcah Tanimu
Amidst Nigeria’s declining revenue, oil and gas companies within the country have flared approximately 12.7 million standard cubic feet (mscf) of gas in July 2023, as revealed by the latest data from the National Oil Spill Detection and Response Agency (NOSDRA).
This figure marks a notable 35 percent increase in comparison to the 9.4 mscf of gas that was flared during the same period in 2022.
The 12.7 mscf of gas flared in July 2023 is valued at $44.3 million, as stated by NOSDRA. Based on the Central Bank of Nigeria’s official exchange rate of N768.77 per dollar, this translates to an estimated loss of N34.1 billion in potential revenue for the country.
NOSDRA further indicated that companies responsible for the gas flaring could potentially face fines totaling $25.3 million, equivalent to around N19.4 billion.
In terms of environmental impact, NOSDRA highlighted that the gas flaring produced carbon dioxide emissions equivalent to 673.1 thousand tonnes and possessed a power generation potential of 1,300 gigawatt-hours (GWh).
Breaking down the volume of gas flared across various oilfields, NOSDRA reported that offshore operators flared 5.1 mscf while onshore operators flared 7.6 mscf.
NOSDRA expressed concern over the persistence of gas flaring in Nigeria, which has been ongoing since the 1950s, contributing to the release of carbon dioxide and other gaseous pollutants into the atmosphere.
In response to this ongoing issue, Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), emphasized that the recently enacted Petroleum Industry Act (PIA) includes provisions aimed at ending gas flaring. He mentioned that the PIA carries substantial penalties against flaring, and the winners of the CV are expected to play a significant role in curbing gas flaring activities.
