Data released by the Nigerian Bureau of statistics indicate that oil exploration companies cut gas flaring by as much as 83 percent in 2014.
According to the NBS data, oil exploration companies in Nigeria burned 409,311,4300 thousand standard cubic feet of gas (mscf) in 2013 but the figure reduced to 289,600,014 mscf in 2014 representing 83 percent decrease in the volume of gas flared in the country.
Figures for 2015 are being compiled.
Within the same period domestic gas utilization increased from 1,916,531,001 mscf to 2,234,668,430 mscf representing a 16 percentage increase in the period showing that more gas was available for domestic utilization with cuts to gas flares.
It is noteworthy that gas production in Nigeria rose from 2,325,137,449 in 2013 to 2,524,268,444 in 2014 representing an 8 percentage increase and indicating commitment by oil and gas companies in Nigeria to reduce gas flares.
Nigeria follows United States and Russia on the list of countries notorious for gas flares in the world.
Oil and gas companies operating in Nigeria were fined N1.81 billion in nine months – January to September 2015, for failure to comply with the Federal Government’s directives on gas flaring from over 257 flow stations in the Niger Delta, according to data released by the Central Bank of Nigeria (CBN).
Penalties for gas flares were increased in 2011 by the then petroleum ministry to N10 or $3.50 per 1000 standard cubic feet (scf). Analysts maintain that the penalty for gas flaring is too low and does not offer any real incentive for defaulting companies to desist from the practice.
Legal expert Toyose Adenipekun, Principal Partner McCoy Barristers told BusinessDay that gas flaring was a preferred option for oil exploration companies. “It is cheaper to pay fines than invest in the technology required for reinjection of the gas flared back into the ground.”
Experts hold the view that gas flaring has serious implications for the environment.
Dele Olowogboye, a Lagos-based medical practitioner noted that prolonged exposure t an environment where gas flaring occurs poses dangers to the lungs and eyes. The associated pollution from gas flaring is believed to impair development of children.
ISAAC ANYAOGU
