Nigeria: FG neglects to recuperate N13.33bn gas flaring fines

Nigeria: FG neglects to recuperate N13.33bn gas flaring fines

By Ahmad Hadizat Omayoza, Mamos Nigeria

The Federal Government recorded an revenue  shortfall of N13.33bn from gas  flaring penalties gave against oil and gas firms in January and February 2023, as per discoveries by The PUNCH.

The PUNCH previously reported that oil and gas companies operating onshore would face a $49 million (N22 billion) fine from the Federal Government for flaring approximately N40 billion (86 million) worth of gas between January and February 2023.

This was by a new gas flare information by the Public Oil slick Identification and Reaction Office, which noticed that the organizations working coastal would suffer the consequences for disregarding the gas erupting rule.

The agency wrote, “Companies operating onshore flared 24.5 billion SCF of gas valued at $85.8 million, with $49 million penalties payable.”

The report said organizations erupted 19.14 billion SCF of gas in January and 14.04 billion SCF of gas in February 2023, contributing 1.3 million tons of carbon dioxide discharge, with power age capability of 2,500 gigawatts hours.

Then again, organizations working seaward erupted 25.8 billion SCF of gas esteemed at $90m; fit for creating 2,600 gigawatts long stretches of power and had a likeness 1.4 million tons of carbon dioxide outflow.

In particular, in January and February of 2023, the offshore companies flared 10.84 billion SCF and 13.09 billion SCF of gas, respectively. NOSDRA didn’t state how much punishments seaward organizations would pay for the flare.

In any case, discoveries by the PUNCH showed that the Central Government didn’t get up to N22bn from gas erupting punishments in January and February.

According to the Central Bank of Nigeria’s quarterly statistical bulletin for the first quarter of 2023, the Federal Government made N4.6 billion in January and N4.07 billion in February.

This implies that a sum of N8.67bn was procured among January and February 2023, leaving a deficiency of N13.33bn.

Gas is scorched off or erupted as a feature of the oil creation process. Be that as it may, the Central Government had, lately, drove lobbies for gas monitisation, as against erupting.

The PUNCH also said that the amount of gas that was flared in both months was 11.9% less than the 57.1 billion SCF of gas that was flared in the same time period in 2022.

The oil slick remediation organization noticed that the gas erupted in the period under survey was comparable to carbon dioxide emanation of 2.7 million tons and had power age capability of 5,000 gigawatts hour of power; while the organizations are responsible for punishments of $101m, about N46b.

Shell Petroleum Development Company, which reported gas flaring from oil mining leases 11, 13, 14, 17, 18, 22, 23, 26, 28, 30 and 39, among others, was one of the affected businesses, according to the NOSDRA report. Nigerian Agip Oil Organization which revealed gas erupting from OML 61, 62; also, Chevron Nigeria which recorded gas erupting from OML 49, 54, 95, among others.

Other impacted organizations incorporate Mobil Creating Nigeria, Nigerian Oil Improvement Organization, Addax Oil Restricted, Famfa Oil and Mythical being Petrol, among others.

NOSDRA mourned that notwithstanding endeavors to lessen it, gas has been erupted in Nigeria since the 1950s, delivering carbon dioxide and other vaporous substances into the air, and has persistently prompted natural and wellbeing challenges in oil-creating regions.

The Director, Society of Petrol Designers, SPE Nigeria Chamber, Prof. Olalekan Olafuyi, said the Central Government would increment gas flare punishments as Nigeria races towards accomplishing its obligation to the Unified Countries net zero objectives by 2060.

Post a Comment

Translate »