Nigeria Lost $779.9m In 6 Months, As Oil Firms Flare 228.8bscf Of Gas
Nigeria lost $779.9 million in the first half of 2020, as oil and gas companies operating in the country flared 222.8 billion standard cubic feet (bscf) of gas from within the period, according to data obtained yesterday from the Federal Government’s gas flare tracker.
In the gas flare tracker published by the National Oil Spill Detection and Response Agency (NOSDRA), majority of the flares were from onshore oil and gas sites, which accounted for 60.95 per cent of total gas flared, while offshore sites accounted for 39.05 per cent of the total.
Specifically, the report noted that 135.8bscf of gas was flared on the onshore sites in the six months period, while 87bscf was flared offshore.
In addition to the amount lost, the report also noted that the fine accruable to the country from the flaring of 222.8bscf of gas stood at $445.7 million.
Giving the impact of the flares to the environment, the report further stated that the volume of gas flared in the six-month period is an equivalent of 11.8 million tonnes of carbon dioxide (CO2) emissions, and is capable of generating 22,300 Gigawatts-Hour (GWH) of electricity.
Giving a breakdown of the figure, the report stated that the 135.8bscf flared onshore is valued at $475.5 million, would fetch a penalty of $271.7 million, and it translated to 7.2 million tonnes of CO2 emissions capable of generating 13,600 GWH electricity.
On the other hand, the report stated that the 87 billion SCF of gas flared offshore between January and June 2020, cost the country a loss of $304.4 million, an equivalent of N109.58 billion, in revenues; would lead to a penalty of $174 million, an equivalent of N62.64 million; CO2 emissions of 4.6 million tonnes and an equivalent of 8,700 GWH of electricity.
At the onshore sites, the NOSDRA report stated that Delta State suffered the most from this unhealthy practice in the six-month period, as it accounted for 38.4 per cent of total gas flared onshore and 23.4 per cent of total gas flared offshore.
