Connect with us

Oil & Energy

Why Gas Flaring Deadline Is Hardly Met -Don

Published

on

When at last, the
Federal Government set the current deadline for the stoppage of gas flaring by oil exploration and development companies in the country, most Nigerians heaved  a sigh of relief that the disturbing issue of gas flaring would soon be a thing of the past, but surprisingly, many years after the Federal Government’s deadline, gas flames still dot oil-producing areas of the Niger Delta.
The Acting Director of Pollution Studies (IPS) of the Rivers State University of Science and Technology, Port Harcourt, Dr. Tubonimi Joseph Ideriah, identified some factors as being responsible for the deadlines not being adhered to.
He said, “There are many factors that contribute to why it is so. One, the operators find it difficult because when you stop the flaring, where do you channel the gas to? That arrangement or provision has not been made or put in place for them to divert the gas to such areas.”
“Again, like every other area in our system where laws are made and people flout the laws as good enforcement is lacking to follow up defaulters of these laws,” he said, noting that the laws are made but that people go behind to receive gratifications, they mellow down and allow unacceptable practices to continue unabated.
Dr. Ideriah expressed the belief that if properly followed up, the operators could definitely look for alternative ways of channeling the gas being flared such that it could be utilized.
The IPS director, who is an expert in Environmental Analytical Chemistry said that though he could not give the value of the nation’s wealth being wasted through gas flare figure-wise but that the nation is losing so much.
He advised that the new power companies that bought over Power Holding Companies of Nigeria (PHCN) could benefit if the gas being flared is channeled to them to solve the problem of gas shortage which they often complain about.
The expert regretted that apart from the huge wealth being wasted in flaring the gas, the environment is being polluted by the activities of unpatriotic Nigerians who sabotage the nation by vandalizing gas pipelines because of survival or agitations.
He advised that sabotaging the effort of government through vandalism of gas pipes should stop and Nigerians should be patriotic while to the agitators, the environmentalist advised them to channel their request to the appropriate quarters and give sometime for the government to attend to such requests. “But when you go the other way round to sabotage, you create problems for the community on behalf of whom may be you think you are fighting for because the environmental effects for such activities could be disastrous as the pollutants emitted into the air may linger for decades and children yet unborn could come to meet them.
The Niger Delta region, he said, is comparatively polluted basically because of the oil exploration and exploitation activities heavily going on in the area as there is no way such activities could be carried on in the area without the pollution associated with such economic activities.
“Since the advent of these oil companies in the Niger Delta, we began to see serious changes in the environment. For instance, houses that are in communities where you have oil exploration activities taking place, farmers and fishermen who managed to buy a bundle of zinc to build house, hoping that the house could be for life, but we have started experiencing fast decay of roofing sheets in most communities especially the riverine area”.
“The gases are mixed with the air that we breathe, so you can see that the air we breathe is polluted, the water we use from the River that we fish as Niger Deltans whose major occupation is fishing as we depend on it and once the river is polluted, whatever we get from the River is contaminated and once you take a contaminated seafood, definitely it gets to the food chain,” he explained.
Ideriah urged the Federal Government through the National Assembly to not only put in place necessary laws but to effectively implement such laws to the latter.
“It is a thing of development and therefore no well-meaning person will contest that these oil activities should stop,” he said but emphasised the need for adoption of international best practices.
These international best practices should be put in practice here also. What is obtained to make other developed places who are also oil exploiting and exploration countries live environmentally clean life should also be applied here,” he advised and wondered why a particular law could effectively work in such countries and not work here where they are operating similar activity.
“If a law is put in place, that law should also be implemented to the latter. There should be no question of short cuts because there are certain things you can’t caught corners without it telling on the system”, he continued.
Noting that we have some good laws because some of them were adopted  from some countries that have similar operations going on there and remarked that inefficiency in their implementations make them look as if they were different laws.
The IPS director accepted that quick passage of the Petroleum Industry Bill (PIB) is desirable for the nation and urged the National Assembly to pass the bill without further delay.
“There could be definitely a lot of proposals that were being made that would sanitise the sector, but we don’t know how effective these  proposals that have been made could be implemented. The first stage is for the bill to be passed because without passing it you cannot get to the stage of how effective the implementation would be”, he stated, stressing that whether they were playing politics with it would be know later.
The National Assembly, he said has committees to monitor its implementations but expressed hope that it would contain proposals geared towards sanitizing the industry.
Commenting on the institute, the Acting Director said, “IPS as the pioneer Institute for Environmental Studies in Nigeria, has done so much towards raising the standard and quality of environmental research in the region since its inception in 1982.
“The institute since its inception in 1982 has been living up to expectations especially in the Niger Delta. For example, the document that is being used in the whole of Nigeria by the Federal Ministry of Environment. In 1991, the institute was part of the team that worked to put those standards that guide operations”, he said.
Some of the major goals of IPS, he said, are to raise the standard and quality of environmental research in the region and to ensure utilization of such research findings in sustainable environmental management and development.
According to him, IPS has achieved those goals through the delivery of world class environmental research studies and reports and cited instances with Environmental Baseline Studies for Establishments of Control Criteria and Standards against Petroleum related Pollution in Nigeria (RPI) report of 1985 and the Niger Delta Environmental Survey (NDES) report of 2000.
He said while RPI covers all spectrum of the environment, Air, Aquatic and Terrestrial, NDES is a regional survey covering the nine states of the Niger Delta and noted that both reports were world class by every standard and were widely referenced document.
He, however, regretted that inspite of the fact that it was the foremost in Nigeria  some of the companies and establishments that were beneficiaries of our studies have changed their policies to what you could describe as lowest bidder kind of thing so that the lowest bidder is given the study job,” he said, remarking that before it was not like that as it was based on recognition and capability.

Ideriah

Ideriah

Christ Oluoh

Continue Reading

Oil & Energy

NCDMB Unveils $100m Equity Investment Scheme, Says Nigerian Content Hits 61% In 2025 ………As Board Plans Technology Challenge, Research and Development Fair In 2026

Published

on

The Nigerian Content Development and Monitoring Board (NCDMB), has unveiled a $100 million Equity Investment Scheme among a raft of fresh initiatives to bolster indigenous capacity and participation in the oil and gas industry.
Executive Secretary of the Board, Engr. Felix Omatsola Ogbe, disclosed this while delivering his keynote address at the opening of the 14th Practical Nigerian Content Forum, held in Yenagoa, Bayelsa State.
Ogbe said the $100 million Equity Investment Scheme would provide equity financing to high-growth indigenous energy service companies, while diversifying the income base of the Nigerian Content Development Fund (NCDF).
In furtherance of the scheme, a memorandum of understanding (MOU) was signed at the event between Engr. Ogbe and the Managing Director of the Bank of Industry, Dr. Olasupo Olusi toward the management of the scheme, which is a new product of the Nigerian Content Intervention Fund (NCI Fund).
The NCDMB Scribe also announced that 61 per cent Nigerian Content level has already been attained in the oil and gas sector by the third quarter of 2025 from projects being monitored by the Board.
Ogbe further expressed the board’s readiness to onboard a new set of Project 100 Companies after the successful implementation of approved interventions relating to the first set of Project 100 Companies, launched in 2019, for which an exit plan is slated for April 2026.
The ‘Project 100 Companies’, TheTide learnt, is an initiative of the Ministry of Petroleum Resources and the NCDMB under which 100 indigenous companies in the oil and gas industry were nurtured and empowered to higher levels of competitiveness through capacity building and access to market opportunities.
The NCDMB helmsman also said the Board has concluded plans to launch its NCDMB Technology Challenge in the first quarter of 2026 and to hold a Research and Development Fair in the second quarter of 2026.
In addition to its ongoing initiatives, the board further stated that a review of its seven current guidelines would be undertaken between the first and second quarter of 2026.
“The Board has completed the framework for issuance of NCDF Compliance Certificate, an instrument to confirm that a company in the oil and gas industry has complied with the one per cent remittance obligations.
“The Certificate will become effective on Ist January 2026 and would be required to obtain key permits and approvals from the Board”, Ogbe said.
In his address, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, said the theme of the PNC Forum, “Securing Investments, Strengthening Local Content, and Scaling Energy Production,” captures Nigeria’s national priorities that guide interventions by the Board and his Ministry.
He insisted that investment remains the lifeblood of the energy sector, and that the Board and the Ministry were committed to providing stable policies, transparent processes, and market-driven incentives, to attract long-term capital,  assuring that the ministry would continue to strengthen local capacity across fabrication, engineering, technology services, manufacturing of components, and research and development.
On his part, the Minster of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, noted with satisfaction that a decade-long stagnation in the oil and gas industry was overcame with the enactment of the long-delayed Petroleum Industry Act (PIA), 2021, and Presidential Directives issued by the Administration of President Bola Ahmed Tinubu in March 2024.
He said Nigeria has regained investor-confidence as signalled by the recent surge in FIDs and the increase of oil rigs from 14 to over 60, with 40 currently in active service.
“Our investment climate now is globally competitive, our fiscal terms are globally competitive. Our policies must be seen to be consistent at all times. The Federal Government is prepared to support Nigerian Content and the oil and gas industry, but then, things have to be done responsibly., he said.
In a goodwill message, the Managing Director, BOI, Dr. Olasupo Olusi, said that the collaboration between the NCDMB and BOI marked a significant expansion of a longstanding relationship, while assuring that through the $100 million NCIF Equity Investment Fund, the Bank of Industry would deploy equity and quasi-equity capital to support high-potential Nigerian companies to complement traditional debt financing and strengthening access to the long-term risk capital required for scale, competitiveness, and value creation.
“With a single obligor limit of $5 million, the Fund is designed to catalyze multiple high-impact investments while maintaining strong governance and prudent risk management”, the BOI Managing Director said.
On her part, the Special Adviser to the President on Energy, Mrs. Olu A. Verheijen, commended the NCDMB for sustaining the PNC Forum, which she said, accelerates change, drives competitiveness, and pushes the industry toward global standards.
She urged stakeholders to remain intentional and not incidental about in-country value addition, as they chart the path toward building a resilient, competitive industrial base in Nigeria.
By;  Ariwera Ibibo-Howells, Yenagoa
Continue Reading

Oil & Energy

Power Supply Boost: FG Begins Payment Of N185bn Gas Debt

Published

on

In the bid to revitalise the gas industry and stabilise power generation, President Bola Ahmed Tinubu has authorised the settlement of N185 billion in long-standing debts owed to natural gas producers.

The N185 billion legacy government obligations to gas producers for past supplies had strained cash flow and hindered operations, discouraged further exploration and production, and reduced gas supply for power generation, thereby worsening Nigeria’s power shortages and unreliable electricity supply.

The payment, to be executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers who have long expressed concern about persistent indebtedness in the sector.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the move, endorsed by the National Economic Council (NEC) headed by Vice President, Kashim Shettima, marked one of the most significant interventions in Nigeria’s energy sector in recent years.
In a statement issued by the his Spokesman, Louis Ibrahim, Ekpo described the approval as a “decisive step towards revitalising Nigeria’s gas sector and strengthening its power-generation capacity in a sustainable manner,”
While noting that the intervention aligned with the ‘Decade of Gas’ initiative, which aims to unlock more than 12 billion cubic feet per day (bcf/d) of gas supply by 2030, Ekpo said clearing the arrears would deliver wide-ranging benefits, beginning with restoring investor confidence in the sector.

According to him, settling the debts is crucial to rebuilding trust between the government and gas producers, many of whom have withheld or slowed new investments due to uncertainty over payments.

Ekpo explained that improved financial stability would help revive upstream activity by accelerating exploration and production, ultimately boosting Nigeria’s gas output adding that Increased gas supply would also boost power generation and ease the long-standing electricity shortages that continue to hinder businesses across the country.

The minister noted that these gains were expected to stimulate broader economic growth, as reliable energy underpins industrialisation, job creation and competitiveness.

In his intervention, Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said the approved plan to clear gas-to-power debts sends a powerful signal of commitment from the President to address structural weaknesses across the value chain.

“This decision underlines the federal government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured. It could unlock stalled projects, revive investor interest and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.

Continue Reading

Oil & Energy

The AI Revolution Reshaping the Global Mining Industry

Published

on

The global mining industry is undergoing a rapid digital transformation, driven by the dual pressures of the energy transition and increasingly complex extraction environments. A new market report projects the global Artificial Intelligence (AI) in mining market will nearly quadruple in value over the next seven years, reaching $9.93 billion by 2032.
This surge in adoption comes as miners face a “perfect storm” of challenges: declining ore grades, labor shortages, and an insatiable global appetite for the critical minerals required to power electric vehicles (EVs) and renewable energy grids.
According to data released this week, the market for AI in mining is valued at approximately $2.6 billion in 2025 and is expected to expand at a Compound Annual Growth Rate (CAGR) of 21.1 percent through 2032.
While the mining sector has historically been viewed as slow to modernize, the need for efficiency is forcing a change. The integration of autonomous haulage systems, predictive maintenance analytics, and “digital twins”—virtual replicas of physical mine sites—is shifting from pilot projects to standard operational necessity.
The “Operations & Process Optimization” segment is currently the dominant application, expected to account for more than 35 percent of the market in 2025. This technology allows companies to squeeze higher yields out of lower-quality rock, a capability that is becoming essential as easily accessible high-grade deposits are depleted worldwide.
The driving force behind this investment is the global scramble for critical minerals. The report highlights that the metal mining segment held the largest market share in 2024, directly correlated to the demand for lithium, copper, cobalt, and nickel—the backbone of the green energy economy.
“Metal mining operations involve highly complex processes—from ore body modeling and exploration to drilling, blasting, grinding, and material movement,” the report notes.
“AI supports these functions through predictive analytics… enabling cost reduction and higher yield recovery.”
For Western nations, this technological pivot also holds geopolitical weight. With China currently dominating the processing of rare earth elements, Western mining majors are under pressure to ramp up domestic production and efficiency to secure supply chains for battery manufacturing and clean energy infrastructure.
Beyond productivity, the industry is leveraging AI to address its most persistent operational risk: safety. The “Safety, Security & Environmental” segment is projected to record the highest growth rate during the forecast period.
Mining remains one of the world’s most hazardous heavy industries. Companies are increasingly deploying AI-powered video analytics and real-time worker tracking to prevent accidents involving heavy machinery and to monitor for gas leaks or ventilation failures in underground operations.
Furthermore, stricter Environmental, Social, and Governance (ESG) criteria from investors are pushing miners to adopt AI for environmental compliance. New tools allow operators to monitor tailings dams for stability, track emissions in real-time, and optimize water usage, ensuring that the intensifying race for minerals does not come at the cost of environmental stewardship.
Geographically, the Asia Pacific region commanded the largest share of the AI in mining market in 2024 and is expected to maintain the highest growth rate.
This dominance is underpinned by massive production volumes in China and Australia. Major industry players in the region, including BHP and Rio Tinto, have been early adopters of autonomous technologies. In Western Australia, for example, autonomous haulage trucks and drill rigs are already commonplace, moving millions of tons of iron ore with minimal human intervention.
China’s adoption is further accelerated by government support for “smart mining” initiatives aimed at modernizing its vast coal and mineral sectors to reduce fatalities and improve environmental performance.
As the world moves toward 2032, the “mine of the future” will likely bear little resemblance to the labor-intensive operations of the past. With generative AI now entering the sector to assist in complex mine planning and exploration, the industry is pivoting toward a model where data is as valuable as the ore itself. For energy markets, this efficiency is not just a bonus; it is a prerequisite for meeting the material demands of a decarbonized world.
By: Charles Kennedy
Continue Reading

Trending