DPR Not Equipped With Accurate Data On Gas Flaring Sites In Niger Delta

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Programme manager for the NGFCP, Mr. Justice Derefaka, said that Nigerians would be amased with what the study found out compared to figures bandied by DPR.

Without accurate gas flare data, then this programmed is dead on arrival. What we are doing beyond the data we have at the DPR is that we are going beyond what they have and have sent a special template with the World Bank and USAID, asking for unique from producers and it would amase you what we have found out”, said Derefaka

Tunminu Micheal, an energy expert, posited that If indeed, it is correct that the country losses so much in revenue as a result of gas flaring, the question that comes to mind is why gas flaring has not been eradicated?

‘’Some argue it is as a result of lack of political will on the part of the government. Others believe it is as a result of the unavailability of the infrastructure required to control gas flaring. There are some who may also suggest there is no available market for domestic gas products and the low price of gas is discouraging.

‘’Whatever the case may be, the focal point is that an end to gas flaring is achievable as evidenced in countries like Netherlands and Norway which have gas-flaring policies that are worthy of emulation. In Norway for example, the Norwegian Petroleum Directorate which is a department within the petroleum ministry, is dedicated to supervising petroleum activities, gas flaring and air emissions. Furthermore, every company applying for a gas flaring permit in Norway is required to identify the measures it has put in place to ensure that the effect of gas flaring on environmental pollution is minimal’’.

Lawmakers’ Discovery

Also, Hon Jarigbe Agom Jarigbe, Chairman House of Representatives Adhoc Committee investigating revenue leakages in Nigeria’s oil and gas industry, said that huge gas flaring was still ongoing in many parts of the Niger Delta despite recent revelation that the practice has now reduced in the country

Hon Jarigbe said that the development has led to huge loss of revenue to the federal government

According to him, gas flaring remains a major challenge in Nigeria as a result of many reasons, including limited funding of major gas projects, inadequate monitoring and weak enforcement of sanctions.

‘’From our preliminary findings, gas flaring is still ongoing in many oil and gas producing areas. This is unacceptable to the government. Nigeria has commercial gas reserves which should be harnessed for export and domestic applications. It is in the best interest of all stakeholders, especially oil companies, the Federal Government and states to bring gas flaring to an end.

‘’As a Committee, we will do our very best, including visiting all onshore and offshore platforms to monitor the operations of the companies.’’

Task For DPR

But, Hon. Ehiozuwa John Agbonayinma, a member of the Committee urged the Department of Petroleum Resources, DPR to compel oil companies to install meters targeted at harnessing associated gas for positive applications in the nation

To him: ‘’The DPR must rise to its responsibilities. Sanctions must be implemented to curb the menace of impunity and corruption in the industry’’

He implored the DPR to provide details of Offshore Safety Permit, OSP, National Data Repository, NDR and DPR account with the Central Bank of Nigeria, CBN, adding that it was necessary to know the percentage of the funds remitted to the Federation Account.

Also, the task force discovered that the Department of Petroleum Resources (DPR) is unable to independently track and measure gas volumes produced and flared since it depends on information operators provide

Promises

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has renewed the Federal Government’s commitment to end gas flaring by 2020.

The Minister, who gave this assurance in the monthly bulletin of Organisation of the Petroleum Exporting Countries (OPEC), said Nigeria’s desire is to end gas flaring 10 years ahead of the 2030 United Nations deadline on flare out.

According to him, Nigeria is about 70 per cent compliant on gas flare exit, and hopes to take away the other 30 per cent within the 2020 deadline.

Speaking on the gas policy, he said: “we are going to try and change our dynamics from being an oil producing country to being a gas producing country, because that is really what we are. Now we need to move from policies to directives.”

He reiterated that it was vital that “we get people back; we will define what the oil policy is, define what gas policy is, and people can have some predictability in terms of the business they are doing, and you begin to see a lot of them come back.”

The Minister also identified the downstream as an area requiring urgent attention, in which a directive had been is up and running by 2019.

He said many teams have been set up to deal with the issues, and there is a lot of financing interest, adding that “infrastructure is a major gap in the oil industry in Nigeria, so we need to think outside of the box.”

Race To End Routine Gas Flare

To nip gas flare in Nigeria in the bud, Ofoegbu suggested that government in consultation with industry stakeholders should fix a definite time frame to end flaring of associated gas and fully implement the Gas Re-injection Act.

He said While the government lead the way by honouring joint venture commitments in the form of paying their portion of the penalties, so as to have the moral-standi to ask IOCs to pay theirs; after-all the marginal differences comes back to the government of Nigeria in the form of revenue.

He added that in accordance with the recommendations of the Ribadu Committee Report, DPR should independently track and record gas production and sales data. The DPR should develop a proper process to independently track and record gas flare figures. This would ensure that there are no losses of revenues due to the Federation Account. It would also provide the important data necessary for reservoir management.

An energy expert, Tunminu Micheal suggested that Nigeria should be proactive with the measures to end gas flare  since it  has endorsed the World Bank’s Zero Routine Flaring by 2030 Initiative, which seeks to bring together governments, oil companies, and development institutions that recognise that flaring is unsustainable from a resource management and environmental perspective.

According to the World Bank, thousands of gas flares at oil production sites around the globe burn approximately 140 billion cubic meters of natural gas annually, causing more than 300 million tonnes of carbon dioxide to be emitted to the atmosphere.

The World Bank noted that gas flaring contributes to climate change and impacts the environment through emission of CO2, black carbon and other pollutants. It also wastes a valuable energy resource that could be used to advance the sustainable development of producing countries.

He said :’’By endorsing the World Bank Initiative,  the federal government  should earnestly begin  to provide a legal, regulatory investment, and operating environment that is conducive to upstream investments and to the development of viable markets and the infrastructure necessary to deliver the gas to the needed markets. For that objective to be realised, the federal government must stipulate in its new prospect offers that field development plans incorporate conservation of associated gas without routine flaring. Furthermore, the federal government should make every effort to ensure that routine flaring at existing oil fields end no later than 2030.

Above all, stakeholders in the nation’s oil and gas section   have tasked President Muhammadu Buhari to employ his change agenda in the governance process on the crusade to end the disturbing frequency of shift in the goal post of gas flaring dates in Nigeria.

They said ending gas flaring in Nigeria is a win-win situation for the parties in the value chain and must not be compromised in any form


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