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Oil firms to pay over $9bn in penalties for gas burning: House of Reps

“Currently, a lot of companies are flaring because what they’re flaring is nothing compared to the investment in the utilisation of gas that is being flared.

“But when the penalty is adjusted appropriately and we are not depending on their meters and are using the gas flare meter developed by NOSDRA, and they are paying heavily for flaring gases, I’m very sure all of them will begin to think of alternative use of gas being flared unabatedly.”

While delivering his keynote address, the speaker, Tajudeen Abbas, who was represented by the Chief Whip, Usman Kumo, observed that gas flaring and venting had been a significant environmental, economic, health and social concern in the country for many years.

“Firstly, gas flaring represents a tremendous waste of valuable resources. Natural gas is a precious energy source that could be utilized for various purposes, such as electricity generation, heating, or industrial processes.

”By simply burning off this gas, we are squandering a valuable resource that could contribute to energy security and sustainability.”

In his presentation, NOSDRA Director General, Mr. Idris Musa, who earlier explained that the extant penalties on gas flaring were to serve as deterrent, however, recommended that the penalties on gas flaring be increased.

While stressing the need for improvement on the penalty application process and procedure of the application and collection, he also harped on the need to abolish the dichotomy of penalty administration.

According to him, total of $3.8 billion Mscf was flared between 2013 to date, while $7.6 billion penalties are payable.

To this end, the lawmakers resolved to investigate the rationale behind $277,258,304.72 disparity in the gas flare penalties computed by NOSDRA and NUPRC.

The ad hoc committee also resolved to summon all the chief executive officers of 19 oil and gas companies and others to appear before it today.


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