FG Fines Oil Companies N22 billion for Gas Flaring.

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The Federal Government will punish oil and gas companies operating onshore for flaring 24 billion SCF of gas between January and February 2023, valued at around N40 billion ($86 million). The companies operating onshore will pay the penalty for breaking the gas flaring rule, according to the National Oil Spill Detection and Response Agency’s most recent statistics on gas flares.

When compared to the 57.1 billion SCF of gas flared over the same period in 2022, the amount of gas released in both months was 11.9% less. Despite efforts to limit it, gas has been flared in Nigeria since the 1950s, releasing carbon dioxide and other gaseous pollutants into the atmosphere and causing ongoing environmental and health issues, according to NOSDRA.

The Chairman, Society of Petroleum Engineers, SPE Nigeria Council, Prof. Olalekan Olafuyi, said the Federal Government would increase gas flare penalties as Nigeria races towards achieving its commitment to the United Nations net zero goals by 2060.

Although he did not state how much increase the flare rates would attract, he said the council was working closely with the Nigerian Upstream Petroleum Regulatory Commission on the matter. Currently, companies producing more than 10,000bpd pay a fine of $2 per 1000 Standard scf of gas flared, while those producing less than 10,000 bpd pay $0.5 per 1000bpd.

Punch.

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