Oil & Energy

Why Gas Flaring Deadline Is Hardly Met -Don

Published

11 years ago

March 24, 2014

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

Christ Oluoh

Oil & Energy

Reps Launches Probe Into N200bn CBN Loan To DISCOs

Published

12 hours ago

May 12, 2025

The Tide

The House of Representatives has launched an investigation into the disbursement and utilisation of the N200billion Central Bank of Nigeria (CBN) loan allocated for the National Mass Metering Programme (NMMP) to Electricity Distribution Companies (DISCOs).
Chairman, House Committee on Public Assets, Rep. Uchenna Okonkwo, disclosed this in a statement in Abuja.
He confirmed that a 19-member sub-committee had been inaugurated to probe the matter thoroughly.
Okonkwo recalled that the NMMP, initiated in 2020, was designed to provide free electricity meters to Nigerian consumers through the Licensed Electricity Distribution Companies (DISCOs).
He said the programme was a joint initiative of the CBN, the Nigerian Electricity Regulatory Commission (NERC), and other stakeholders in the Nigerian Electricity Supply Industry (NESI), aimed at eliminating estimated billing, improve transparency in energy usage, and enhance customer satisfaction.
Speaking on the launch of the NMMP, the Rep said the programme was to be implemented in three phases to ensure the reduction of collection losses and improve market remittances in the industry.
“Under the pilot phase of the programme’s implementation, CBN commenced with the sum of N59.280 billion for procurement and installation of one million meters in 2020 at an interest rate of 9 per cent after a two year moratorium.
“Preliminary research on the NMMP has shown that instead of the pronounced amount of N59.280 billion naira for the phase 0, what was released was N55.4 billion for procurement and installation of 962,832 meters instead of one million meters pronounced by CBN”, he noted.
Okonkwo stated futher that concerns have been raised regarding repayment, with the committee noting discrepancies in the repayment of the funds by the DISCOs.
According to Okonkwo, “Research has also shown that the eleven Electricity Distribution Companies who received the loan have paid back to CBN as refund for the N54.4 billion they received in 2020 without mentioning the 9 per cent interest on the loan.”
The lawmaker, however, said the subsequent phases of the programme, which were expected to significantly expand metering across the country, have stalled, explaining that Phase 1, which was to be funded by the CBN and Deposit Money Banks (DMBs) for 1.5 million meters, and Phase 2, expected to be financed by the World Bank for four million meters, are yet to take off.
He said the House, exercising its constitutional powers under Sections 88(1) and (2) of the 1999 Constitution, resolved to investigate the matter with a view to safeguarding public interest.
According to him, the sub-committee is expected to scrutinise all aspects of the NMMP funding, from disbursement and meter procurement to distribution and repayment mechanisms.
The 19-member committee comprises Reps. Obed Shehu, Ali Shettima, Abel Fuah, Salisu Koko, Ahmed Munir, Sani Umar Bala, Gbefwi Jonathan, Abdulmaleek Danga, Chinedu Obika, and Okunlola Lanre.
Others include Reps. Abass Adekunle, Akinosi Akanni, Obuzor Victor, Peter Akpanke, Ngozi Lawrence, Ogah Amobi Godwin and Ikeagwuonu Onyinye.
It would be noted that the NMMP was expected to be a game-changer in Nigeria’s power sector by reducing estimated billing, enhancing energy accountability, and restoring consumer trust.
However, the current revelations point to implementation failures and possible mismanagement of public funds.
Analysts believe that the outcome of the House probe could lead to reforms in electricity metering policy and strengthen regulatory oversight of loan disbursements to DISCOs.

Oil & Energy

“Renaissance Energy, NNPC JV Donate ICU Equipment To RSUTH

Published

12 hours ago

May 12, 2025

The Tide

Renaissance Africa Energy Company Limited and its joint venture partners, including the Nigerian National Petroleum Company Limited (NNPC), have donated vital medical equipment and essential drugs to the Intensive Care Unit (ICU) of the Rivers State University Teaching Hospital (RSUTH).
Among the equipment are three ventilators, a laser therapy machine, as well as significant supply of seed stock drugs targeted at enhancing the hospital’s capacity to provide critical care and ensuring consistent drug availability.
Speaking at the Handover Ceremony at Renaissance Energy Headquarters, in Port Harcourt, the General Manager, Relations and Sustainable Development, Renaissance Africa Energy, Igo Weli, said, “The gesture by Renaissance and our partners is to enhance the capacity of the hospital to provide critical care to patients in need; improve the training of upcoming healthcare personnel; and provide support to dedicated healthcare professionals in their mission to save lives and improve patient outcomes.”
The Chief Upstream Investment Officer, NNPC, Oluwaseyi Omotowa, noted that the donations were part of a broader social intervention strategy of the Renaissance-operated joint venture.
Omotowa, who was represented by the Lead, Stakeholder Relations, NNPC Upstream Investment Management Services, Mrs. Uzo Ejidoh, further said “the JV has a deliberate corporate social responsibility strategy to serve the people.
“This is an unchanging commitment, hence our steadfast support and investment in social impact projects for the healthcare sector to continue to transform lives”.
Recieving the donations, the Chief Medical Director, RSUTH, Professor Chizindu Alikor, stated that the hospital was committed to the delivery of excellent healthcare along with research and training.
Alikor said, “The teaching hospital is on an upward trajectory. The ICU facilities were over stretched, and we are excited that our request to Renaissance and its partners for assistance was granted.
The CMD expressed the hospital’s confidence in Renaissance’s capacity and people-centric interventions, especially as it concerns Corporate Social Responsibility (CSR) in the health space.

By: Lady Godknows Ogbulu

Oil & Energy

Tight Now, Loose Later: Oil Futures Flash Warning

Published

12 hours ago

May 12, 2025

The Tide

Last week, OPEC+ announced it will once again accelerate the pace of unwinding of production cuts, with output targets for June increasing by 411,000 barrels per day, equivalent to three monthly increments.
This follows a similar move in April, with the organization appearing willing to stay the course amid low oil prices and fears of weakening demand.
We reported that global crude inventories remain low enough, thus giving OPEC+ a window to scale back its voluntary cuts until the market surplus finally arrives.
Saudi Arabia appears intent on “punishing” OPEC+ rascals such as Kazakhstan and Iran for repeatedly violating their quotas.
Commodity analysts at Standard Chartered have reported that the latest OPEC survey of secondary sources reveals that Kazakhstan’s crude oil output clocked in at 1.852 mb/d in March, 384 kb/d above its OPEC+ quota.
Further, the country also failed to keep its promise to cut 38 kb/d in compensation for overproduction in March, bringing its total overproduction to 422 kb/d.
The same scenario is expected to unfold in the coming months. Kazakhstan produced 240 kb/d more y/y in March, a sharp contrast from the other eight OPEC+ members who produced a combined 612 kb/d less.
And now, the oil futures markets are sending a dire warning that oil bulls could find themselves in trouble quite soon due to a combination of the OPEC+ output hike and Trump’s tariffs.
Oil futures curve has formed a rare “smile” shape, a structure Morgan Stanley says was last seen briefly in February 2020 just before the infamous oil price crash.
On Wednesday, Brent futures’ July contract was trading at a premium of 74 cents to the October contract, a market structure known as backwardation, foreshadowing immediate tight supply.
However, prompt prices from November have formed a contango, with forward prices flipping to a discount, indicating oversupply as traders predict Trump’s tariffs will eventually weaken oil demand. Having backwardation and contango together leads to the rare “smile” shaped curve.
According to the latest available data by the International Energy Agency (IEA), global oil inventories stood at 7.647 billion barrels in February, down from 7.709 billion barrels for last year’s corresponding period and close to the bottom of their historical five-year range.
Meanwhile, refiners’ appetite for crude is climbing ahead of the peak driving season in July and August, “Refinery maintenance in the Atlantic basin will start to taper off, increasing oil demand (for refining)… Summer driving should provide some support,” BNP Paribas analyst told Reuters.
Global oil demand is expected to rise by 1.3 million barrels per day in the third quarter of the current year, up from an average of 104.51 million bpd in the second quarter, the IEA has predicted.
The 1 million bpd output increases announced by OPEC+ so far, coupled with another 400 kb/d increase in July, almost matches the predicted demand increase, implying oil markets will not face a surplus till late in the year.
Meanwhile, oil prices jumped in Thursday’s session after the Trump administration announced it has struck a trade deal with the UK. Brent crude for July delivery was up 2.7% to trade at $62.75/bbl at 12.50 pm ET while WTI crude contract for June delivery added 3.0% to change hands at $59.86 per barrel. However, terms of the deal appear to fall well short of the “comprehensive” package Trump earlier touted.
According to Trump, UK Prime Minister, Keir Starmer, will further reduce non-tariff barriers and fast-track U.S. goods into his country.
Meanwhile, another solid week of jobless claims underscored the Federal Reserve’s ongoing unwillingness to cut rates. U.S. jobless claims fell 13,000 to 228,000 for the period ending on May 3.
Continued claims, however, clocked in at just over 1.9 million, near the highest levels since 2021, suggesting workers are still finding it difficult to secure new jobs as the economy stalls.
That said, commodity analysts at Standard Chartered have predicted that path of least resistance for oil prices is lower in the coming months, with oil prices to remain low before beginning a gradual recovery later in the year as U.S. oil output declines.
StanChart, however, says there’s some technical support in the short-term, with fundamentals remaining fairly positive. Recently, StanChart cut its 2025 oil price forecast to $61/bbl from $76 and also lowered its 2026 forecast to USD 78/bbl from $85 citing Trump’s tariffs.