Nigeria reduces gas flaring and raises investment

Nov 23, 2002 01:00 AM

Utilisation of Nigeria's gas got a boost as government says that flared gas in the upstream sector of the oil and gas industry has been reduced from 68 % in 1998 to 51 % in 2002 and has raised investment in the sector by about 100 % over what it spent in 1998.
The Special Assistant to the President on Petroleum Matters Engr. Funsho Kupolokun disclosed this at the workshop of the Nigerian Association of Petroleum Explorationists (NAPE) held in Lagos. He said that by 1998, 68 % of the total gas produced during oil production was flared, but presently flared gas stands at 51 % indicating a reduction of 17 % in three years while government capital expenditure in the industry has also risen from $ 4.65 bn in 1998 to $ 9.47 bn in 2002.

Engr. Kupolokun said that presently the country has about 5 bn barrels of oil reserves while gas reserves is 19 tcf. In his words, "With the steady rise in reserves since 1993 and acceleration of same in the last three years, at the end of 2001, the nation's oil reserves stood at 31.6 bn barrels. Consequently, as against a year 2003 reserve-target of 30 bn barrels previously set by government, it believes that by end of 2002, reserves would have risen to 33 bn barrels," he said.
These developments, he said, were brought about by government's drive for foreign capital inflow into the country. He noted that government through its Joint Venture partners presently account for 95 % of the nation's oil production.

On capacity building and local content, Kupolokun stated that government maintains its mandatory minimum 30 % local content for all multi-national oil companies operating in Nigeria with a directive to utilize Nigerian goods and services and the involvement of Nigerians in management and professional cadres. He said this directive is achieving results saying that currently various big projects executed outside Nigeria are undertaken in Nigeria by Nigerians.
These include: Three TotalFinaElf's Amenam drilling deck in Warri, three SNEPCO's Bonga topside modules, three Shell EA drilling jackets in Warri, Agip/NPDC's Okpoho drilling platform in Port Harcourt and Quality Assurance for Forcados Yokri project among others.

He said that against flares down date of 2008, flared gas will essentially be eliminated before the end of 2006 adding that structures are being put in place to accommodate all associated gas with a significant increase in local consumption. He pointed out that when all the export projects come on stream, it is expected that by 2008, production will rise as follows: 31 mm tpy of LNG, 6 mm tpy of LPG and 5 mm tpy of condensates noting that government expects a net cash flow of $ 4.3 bn from these projects by 2010.
Kupolokun stated that government's efforts at accomplishing these targets at the earliest possible time are to reduce the country's dependency on OPEC quota for revenue which he said is currently 82 % and the highest among OPEC members and to create permanent employment for over 4,000 Nigerians.

Source: Vanguard
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