Nigeria lost $198.775 million, about N31.8 billion, in one month to gas flaring, as companies in the oil and gas sector flared 50.098 billion Standard Cubic Feet (SCF) of gas in February 2014.
And United States Energy Information Administration, EIA, put the price of natural gas in the international market at $3.89 per million British thermal unit, BTU, of gas. One SCF of gas is equal to 1,020 BTU of gas.
According to recently released data by the Nigerian National Petroleum Corporation, NNPC, on activities in the Nigerian petroleum sector in the month of February, the amount of gas flared is about 23.2 per cent of the total gas produced in the period.
According to the NNPC, total gas produced in the period was 215.93 billion SCF, dropping by 5.19 per cent or 11.81 billion SCF from 227.74 billion recorded in January 2014.
Of the total amount of gas produced, only 165.83 billion SCF of gas was utilised, representing 76.8 per cent of the total amount of gas produced.
Sole Risks/Independent oil companies were the worst offenders, flaring 87.25 per cent of their total gas production.
Specifically, Sole risks/Independents oil companies produced 17.42 billion SCF of gas, utilised 2.22 billion SCF and flared 15.2 billion SCF.
Marginal fields’ operators followed, flaring 55.49 per cent or 1.066 billion SCF of their total gas production of 1.92 billion SCF.
Production Sharing Companies, PSC, flared 22.79 per cent or 9.477 billion SCF of gas from their total production of 41.58 billion SCF, while Joint Venture, JV, operators produced 155.01 billion SCF of gas, utilised 130.65 billion SCF and flared 24.36 billion SCF of gas, representing 15.71 per cent of the total.
Six companies – Seplat, First Hydrocarbon, ND Western, Express Petroleum, Energia, and Midwestern Oil and Gas flared 100 per cent of the gas they produced, while Dubri Oil, Platform Petroleum, and Pillar Oil flared 98.76 per cent, 96.8 per cent and 88.97 per cent respectively, of their total gas production.
In General, the NNPC further stated that only Shell Petroleum Development Company, SPDC, Mobil Producing Nigeria, MPN, and Addax Petroleum carried out exploration/drilling activities during the month under review, stating that the operation was carried out on eight wells.
Continuing, it stated, “Terminal (fiscalised) production total for the month was about 63.86 million barrels representing 2.28 million barrels per day, and lower by 10.19 per cent of January 2014 production of 71.11 million barrels or 2.29 million barrels per day.
“Total crude oil and condensates lifting for both domestic and export were about 69.57 million barrels. Oil companies lifted about 38.78 million barrels, representing 51.79 per cent, while NNPC lifted 30.79 million barrels, representing 48.21 per cent.
“Lifting by fiscal regime shows 33.73 million, 26.20 million, and 9.6 million barrels for JVC, PSC/SC, and others respectively. Out of NNPC’s liftings, 24.15 million barrels was for Federation Account, while 5.70 million barrels was for domestic use.
“The total Natural Gas Liquid, NGL, produced for the month of February 2014 was 118,096MT out of which Mobil had about 51 per cent or 60,228MT and NNPC 49 per cent or 57,868MT. A total of 109,209MT was lifted for the month !!!