Oil Firms Waste N169.4bn Gas in Five Months

By Adedapo Adesanya

Gas that would have fetched the nation about N169.4 billion amid a strain in earnings has been wasted by oil and gas companies operating in Nigeria through gas flaring.

Data released by the National Oil Spill Detection and Response Agency (NOSDRA) disclosed that the gas wasted by these energy firms was between January and May 2022.

In measurement, the culprits flared 116.4 billion Standard Cubic Feet (SCF) of gas in the period under review and would have generated 11,600 gigawatts hour of electricity. The flared gas led to 6.2 million tonnes of carbon dioxide emissions.

The companies are also liable for fines totalling $232.7 million, about N96.8 billion; which according to NOSDRA, are hardly ever collected.

NOSDRA’s analysis of the gas flared in the period revealed that in January 2022, a total of 29.97 billion SCF of gas was flared by the companies; in February, 27.12 billion SCF was flared; while in March, April and May, 16.49 billion SCF, 21.48 billion SCF and 21.3 billion SCF were flared respectively.

Furthermore, NOSDRA stated that most of the defaulting firms in the months under review operated in onshore oil fields, flaring 59 billion SCF of gas, valued at $206.5 million, about N85.9 billion.

NOSDRA noted that the gas flared by companies operating onshore was capable of generating 5,900 gigawatts hour of electricity, equivalent to 3.1 million tonnes of carbon dioxide emissions; while the firms were liable for penalties of $118 million, about N49.09 billion.

Giving a breakdown of gas flared onshore in the five months period of 2022, the oil spill and gas flare watchdog disclosed that in January, February and March, 19.14 billion SCF; 14.03 billion SCF and 10.49 billion SCF of gas was flared, respectively; while 6.63 billion SCF and 8.72 billion SCF of gas was flared in April and May 2022, respectively.

On the other hand, NOSDRA reported that oil and gas companies operating offshore flared 57.4 billion SCF of gas, valued at $200.7 million, about N83.49 billion; capable of generating 5,700-gigawatt hours of electricity; engendered 3.0 million tonnes of carbon dioxide emissions; and attracted fines of $114.7 million, about N47.72 billion.

Giving a breakdown of the gas flared offshore in the five-month period, NOSDRA stated that 10.83 billion SCF of gas; 13.09 billion SCF of gas; 6.0 billion SCF of gas; 14.85 billion SCF and 12.58 billion SCF of gas was flared in January, February, March, April and May 2022, respectively.