Nigeria proposes 2011 as new deadline for gas flaring

The Federal Government proposed 2011 as the new terminal date for oil exploration and production companies operating in the country to stop gas flares and said it was committed to ensuring that the flares were out before the end of the first tenure of the present administration.
But it was a proposal that met with stiff opposition by all the multinational oil firms who ironically operate in the oil fields in partnership with the Nigeria National Petroleum Corporation (NNPC). The disagreement came on the heels of revelations that as much as 2 bn cf of gas is flared across the Nigeria's vast oil fields and that the country loses an estimated $ 4 mm daily as a result of this continued waste of what would have been a major source of revenue.

Minister of State for Petroleum, Chief Odein Ajumogobia, disclosed that going by the plans of the Federal Government, 2010 should be the beginning of the drastic reduction of gas flares and oil companies should begin to cut down considerably on the quantum of gas flared while allowing a transitory period of another one year for the country to achieve zero flares in its oil fields. Ajumogobia, who spoke at the Joint Public Hearing of the House of Representatives Committees on Gas Resources and Justice said that under the new strategic plan, zero gas flare was feasible by 2011.
The public hearing was convened to give stakeholders an opportunity to exchange ideas on the bid by the House to amend the Associated Gas Re-injection Act No. 99 of 1979 Cap 25 Laws of the Federation of Nigeria.

Ajumogobia said that since the earlier deadline of 2008 could not be met due to excuses on the part of the oil firms, the Federal Government was putting in place the enabling environment for the nation to get it right this time. According to him, while the government has set in motion policies that would encourage gas utilisation on the domestic scene, it has also embarked on projects directed at encouraging gas exports.
Nigeria, the minister said, has already begun to export its gas through the West African Gas Pipeline and was also committed to the more ambitious Trans Saharan Gas Pipeline which is expected to move Nigeria's gas through Algeria to Europe.

Six oil firms namely Shell, Chevron, Agip, ExxonMobil, Total and Addax were present at the public hearing and in separate presentations they reeled out projects, programmes and proposals from their respective firms geared towards ending gas flares in their operations. They were however unanimous in their opposition to the 2010-2011 transitory period proposed by the Federal Government and preferred 2013.
They also gave the common excuse that funding was the major challenge faced by the oil firms in executing projects that will encourage gas utilisation and extinguish the gas flaring.

Chairman, House Committee on Gas Resources, Honourable Igochukwu Aguma, expressed dismay with the position of the oil firms and accused them of ganging up to hold the country to ransom.
He said that all the firms should be prepared to henceforth work under a strict regulatory framework where laws are enforced and legislative oversight functions strengthened to produce positive results.