Oil & Energy

Oil Firms Still Flaring Gas – NNPC Report

Published

6 years ago

June 3, 2019

Gas flare figures released in the most recent monthly financial and operational report of the Nigerian National Petroleum Corporation shows that oil companies in Nigeria are still flaring the commodity in large volumes.
Flare gas is essentially associated gas that is produced with oil, as they both come out of the ground. Flare gas pollutes the environment, causing sickness and other environmental hazards, particularly in locations where the International Oil Companies operate in the Niger Delta.
An analysis of NNPC’s latest monthly report for January 2019 showed that as much as 610.07 million standard cubic feet of gas were flared daily by oil companies in the first month of this year.
Although this volume is 119.48mmscfd lower than what the firms flared daily in December 2018, it was far from the Federal Government’s target of zero gas flare in Nigeria.
It also indicated that there was still enough flare gas that should be commercialised, and as such should adequately fit into the plan of the Nigerian Gas Flare Commercialisation Programme.
On the off-take of natural gas, commercialisation and utilisation, the latest NNPC report stated that out of the 244.65 billion standard cubic feet of gas supplied in January 2019, a total of 151.5BCF of gas was commercialised, consisting of 38.03BCF and 113.47BCF for the domestic and export markets respectively.
This translates to a total supply of 1,226.83mmscfd of gas to the domestic market and 3,780.24mmscfd of gas supplied to the export market for the month.
This implies that 61.73 per cent of the average daily gas produced was commercialised while the balance of 38.27 per cent was re-injected, used as upstream fuel gas or flared.
Gas flare rate was 7.52 per cent for the month under review, which was 610.07mmscfd compared with average gas flare rate of 9.76 per cent, i.e. 770.31mmscfd for the period January 2018 to January 2019.
The report noted that total gas supply for the period January 2018 to January 2019 stood at 3,081.17BCF, out of which 468.23BCF and 1,342.99BCF were commercialised for the domestic and export markets respectively.
Gas re-injected, fuel gas and gas flared stood at 1,269.95BCF.
The figures above, therefore, showed that the volume of gas being flared in the oil sector was still high.
Senior government officials told our correspondent that this was why the NGFCP was initiated to help address the issue and possibly end gas flaring. Gas flaring can be solved with cogeneration

They stated that the Federal Government recently received statements of qualification from a total of 240 firms that want to commercialise flared gas in Nigeria.
It was gathered that the interested parties submitted their statements of qualification in response to the request for qualification package of the Nigerian Gas Flare Commercialisation Programme.
This was contained in an email on updates about the NGFCP, which was sent to our correspondent by the Chairman, Ministerial Steering Committee, NGFCP and Group Executive Director, NNPC/Senior Technical Adviser, Refineries, Gas, Power and Downstream Infrastructure to the Minister of State for Petroleum Resources, Rabiu Suleiman.
“NGFCP is very pleased to advise that 240 SOQs (Statements of Qualification) were received. As you are aware, a Proposal Evaluation Committee and an Independent Observer Group were appointed and inaugurated on the 11th of April, 2019 by the Minister of State for Petroleum Resources, Ibe Kachikwu,” Suleiman said.
He added, “The PEC shall evaluate the SOQs submitted by the applicants to determine qualified applicant status in compliance with the design criteria of the request for qualification and also to evaluate the proposals that would be submitted by qualified applicants to determine those bidders that achieve preferred bidder and reserved bidder status.”
Suleiman said the PEC and IOG would begin their work of evaluating the SOQs starting from June 2019, adding that it was expected that the results would become known at the end of the exercise within four weeks.
“The general public and all applicants will be advised thereafter on the names of the candidates adjudged successful who shall be invited to submit their proposal for flare gas utilisation through the request for proposals phase of the NGFCP,” he stated.

Oil & Energy

TotalEnergies, Conoil Sign Deal To Boost Oil Production

Published

2 days ago

November 24, 2025

The Tide

TotalEnergies has signed agreements with Conoil Producing Limited under which to acquire from Conoil a 50 per cent interest in Oil Processing Licence (OPL) 257, a deep-water offshore oil block in Nigeria.

The deal entails Conoil also acquiring a 40 per cent participating interest held by TotalEnergies in Oil Minining Lease (OML) 136, both located offshore Nigeria.

Upon completion of this transaction, TotalEnergies’ interest in OPL257 would be increased from 40 per cent to 90 per cent, while Conoil will retain a 10% interest in this block.

Covering an area of around 370 square kilometres, OPL 257 is located 150 kilometers offshore from the coast of Nigeria. “This block is adjacent to PPL 261, where TotalEnergies (24%) and its partners discovered in 2005 the Egina South field, which extends into OPL257.

Senior Vice-President Africa, Exploration & Production at TotalEnergies, Mike Sangster, said “An appraisal well of Egina South is planned to be drilled in 2026 on OPL257 side, and the field is expected to be developed as a tie-back to the Egina FPSO, located approximately 30 km away.

“This transaction, built on our longstanding partnership with Conoil, will enable TotalEnergies to proceed with the appraisal of the Egina South discovery, an attractive tie-back opportunity for Egina FPSO.

“This fits perfectly with our strategy to leverage existing production facilities to profitably develop additional resources and to focus on our operated gas and offshore oil assets in Nigeria”.

Oil & Energy

“COP30: FG, Brazil Partner On Carbon Emissions Reduction

Published

2 days ago

November 24, 2025

The Tide

The Federal Government and Brazil have deepened collaboration on climate action, focusing on sustainable agriculture, renewable energy, and the reduction of black carbon emissions.

The partnership is anchored in South-South cooperation through the Brazil-Nigeria Strategic Dialogue Mechanism, which facilitates the exchange of ideas, technology, and policy alignment within the global climate framework, particularly the Paris Agreement.

The Executive Secretary, Amazon Interstates Consortium, Marcello Brito, made the disclosure during an interview with newsmen, in Abuja, on the sidelines of the 2025 COP30 United Nations Climate Change Conference, held in Belem, Brazil.

Brito emphasized that both nations are committed to global efforts aimed at curbing black carbon emissions, a critical component of climate mitigation strategies.

“Nigeria and Brazil are collaborating on climate change remedies primarily through the Green Imperative Project (GIP) for sustainable agriculture, and by working together on renewable energy transition and climate finance mobilisation,” Brito said.

“These efforts are part of a broader strategic partnership aimed at fostering sustainable development and inclusive growth between the two Global South nations,” Brito added.

TheTide gathered that President Bola Ahmed Tinubu announced an ambitious plan to mobilize up to $3 billion annually in climate finance, through its National Carbon Market Framework and Climate Change Fund, positioning itself as a leader in nature-positive investment across the Global South.

Represented by the Vice President, Senator Kashim Shettima, Tinubu made the announcement during a high-level thematic session of the conference titled ‘Climate and Nature: Forests and Oceans’

Tinubu stressed that Nigeria’s climate strategy is rooted in restoring balance between nature, development, and economic resilience.

Hosted in the heart of the Amazon, on November 10—21, the 30th COP30 conference brought together the international community to discuss key climate issues, focusing on implementing the Paris Agreement, reviewing nationally determined contributions (NDCs), and advancing goals for energy transition, climate finance, forest conservation, and adaptation.

Oil & Energy

DisCo Debts, Major Barrier To New Grid Projects In Nigeria ……. Stakeholders

Published

2 days ago

November 24, 2025

The Tide

Energy industry leaders and lenders have raised concerns that the high-risk legacy debts of Distribution Companies (DisCos) and unclear regulatory frameworks are significant barriers to the financing and development of new grid-connected power projects in Nigeria.

The consensus among financiers and power sector executives is that addressing legacy DisCo debt, improving contractual transparency, and streamlining regulatory frameworks are critical to unlocking private investment in Nigeria’s power infrastructure.

Speaking in the context of new grid-connected power plants, during panel sessions at the just concluded Lagos Chamber of Commerce and Industry (LCCI) Power Conference, Senior Vice President at Stanbic IBTC Infrastructure Fund, Jumoke Ayo-Famisa, explained the cautious approach lenders take when evaluating embedded or grid-scale power projects.

Ayo-Famisa who emphasized the critical importance of clarity around off-takers and contract structures said “If someone approaches us today with an embedded power project, the first question is always: Who is the off-taker? Who are you signing the contract with?” . “In Lagos State, for example, there is Eko Electricity and Excel Distribution Company Limited. Knowing this is important,” she said.

She highlighted the nuances in contract types, whether the developer is responsible just for generation or for the full chain, including distribution and collection.

“Collection is very important because you would be wondering, ‘is the cash going to be commingled with whatever is happening at the major DISCO level, is it ring-fenced, what is the cash flow waterfall,” she stated.

Ayo-Famisa pointed out that the major stumbling block remains the “high leverage in the books of the legacy DisCos.” Incoming project financiers want to be confident that their cash flows won’t be exposed to the financial risks of these indebted entities. This makes clarity on contractual relationships and cash flow mechanisms a top priority.

Noting that tariff clarity also remains a challenge, Ayo-Famisa said “Some states have come out to clearly say that there is no subsidy; some are saying they are exploring solutions for the lower income segments. So, the clarity would be on who is responsible for the tariff, is this sponsored?, Can they change tariffs?, In terms of if their cost rises, they can pass it on, or they have to wait for the regulator.

“Unlike, what you find in the willing seller-willing buyer, where they negotiate and agree on their prices. Now they are going into grid, there is Band A, Band B, if my power goes into, say, Ikeja Electric, or I have a contract with them, “am I commingled with whatever is happening across their multiple bands?”

Also speaking, Group Managing Director and CEO of West Power & Gas Limited, Wola Joseph Condotti, stressed the dual-edged nature of decentralization in the power sector.

“Of course, decentralization brings us closer to the people as the jurisdiction is now clear. You also know that your tariff would be reflective of the type of people living in that environment. You cannot take the Lagos tariff to Zamfara, and this is what has been happening before now in the power sector. So, decentralization brings about a more customized solution to issues you find on the ground.

“Some of the issues I see are those that bother on capacity. It was a centrally run system that had 11 DISCOs. Of the 11 DISCOs, I think there are 3 or 4 of us today that are surviving or alive, if I may put it that way. If you go to electricity generation companies, they are doing much better,” she said.

Condotti highlighted regulatory overlaps as another complication, especially when power generation or distribution crosses state lines.

She said, “Investors would definitely have a problem. Say if you have a plant in Ogun State supplying power to another state, say Lagos State; you are automatically regulated by NERC. But the truth is that the state regulator of Ogun State and Lagos State wants you to comply with certain regulatory standards.”

With the growing demand for reliable electricity and an urgent need for infrastructure expansion, the ability to navigate these complex financial and regulatory landscapes would determine the pace at which new grid-connected power projects can be developed.