Oil & Energy
Nigeria Loses N197bn To Gas Flaring In Nine Months
Oil and gas firms operating in the country flared a total of 215.9 billion standard cubic feet of natural gas in the first nine months of last year, amounting to a potential loss of N197bn.
Data obtained by our correspondent from the Nigerian National Petroleum Corporation showed that 31.68 billion scf of gas was flared in January; 27.25 billion scf, in February; and 26.88 billion scf in March, and 23.06 billion scf in April.
The firms, including international and indigenous operators, wasted 21.20 billion scf of gas in May; 21.66 billion scf in June; 21.21 billion scf in July; 22.42 billion scf in August, and 20.54 billion scf in September.
With the price of natural gas put at $2.97 per 1,000scf as of Friday, the 215.9 billion scf flared translates to an estimated loss of $641.22m or N196.82bn (using the official exchange rate of N306.95/dollar).
According to the NNPC, out of the 238.91 billion scf of gas supplied in September 2018, a total of 142.09 billion scf of gas was commercialised, comprising 30.36 billion scf and 111.73 billion scf for the domestic and export market respectively.
It said, “This translates to a total supply of 1,011.96 mmscfd of gas to the domestic market and 3,724.26 mmscfd of gas supplied to the export market for the month.
“This implies that 59.47 per cent of the average daily gas produced was commercialised while the balance of 40.53 per cent was re-injected, used as upstream fuel gas or flared. Gas flare rate was 8.60 per cent for the month under review i.e. 684.69mmscfd compared with average gas flare rate of 10.17 per cent i.e. 800.59mmscfd for the period September 2017 to September 2018.”
It said total gas supply from September 2017 to September 2018 stood at 3.094 trillion scf, out of which 464.48 billion scf and 1.331 trillion scf were commercialised for the domestic and export market respectively.
The NNPC said, “Out of the 1.011 billion scfd of gas supplied to the domestic market in September 2018, about 614.55mmscfd of gas, representing 60.73 per cent was supplied to gas-fired power plants while the balance of 397.41mmscfd or 39.27 per cent was supplied to other industries.
“Similarly, for the period of September 2017 to September 2018, an average of 1.185 billion scfd of gas was supplied to the domestic market, comprising of an average of 743.85mmscfd or (62.75 per cent) as gas supply to the power plants and 441.58mmscfd or (37.25 per cent) as gas supply to industries.”
It said about 3.370 billion scfd or 90.50 per cent of the export gas was sent to Nigerian LNG Limited in September, compared with an average of 3.043 billion scfd or 89.58 per cent for the period September 2017 to September 2018.
Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor