Nigeria, Norway Seal Deal on Gas Flaring, Oil Spill
•FG sets up ad hoc flare committee
By Chika Amanze-Nwachukwu, 01.07.2008
Determined to achieve zero gas flare-out by Dece-mber 31, 2008, the Federal Government in conjunction with oil companies operating in the country has set up an ad hoc Flare Reduction Committee with a mandate to come up with a road map for elimination of routine gas flaring within a realistic time frame.
This is coming on the heels of an agreement signed by the Federal Government and the Kingdom of Norway on how the latter could assist the country to check oil spills and reduce gas flaring.
President Umaru Musa Yar'Adua had late last year announced the new Gas Flare-out date following the inability of oil companies to meet the January 1, 2008 deadline earlier agreed.
The two countries met in Abuja last October 29 to discuss issues affecting their petroleum sectors under the Memorandum of Understa-nding (MoU) on Development and Co-operation in Oil and Gas Related Industries signed by both countries in 2000.
Minister of State for Petroleum, Mr. Odein Ajumogobia, SAN, who led other top government officials to the meeting, had solicited the support of Norway on the possibility of trapping and storing carbon dioxide from oil production, power plants and industrial operations as part of measures to protect Nigerian environment.
The minister had also canvassed more information on trapping and storing of the greenhouse gas, based on Norway’s experience.
In a communiqué issued at the end of the meeting obtained by THISDAY, it was agreed that Norway would assist Nigeria in its aspiration to reduce gas flaring. It was further agreed that the Norwegian Government would assist Nigeria in developing oil spill monitoring and environmental regulations as well as to develop competencies and capacities in environmental impact assessment analysis.
Based on its experience, Norway, the parties agreed, would provide the requisite training and transfer of knowledge, while the Nigerian government would provide counterpart funding as may be required under the partnership.
Confirming the setting up of the committee at the weekend, Group General Manager (GGM), Public Affairs of the Nigerian National Petroleum Corporation (NNPC), Dr. Levi Ajuonuma, stated that the committee was currently working with experts in the preparation of assessments on the environmental, health and financial impacts of ending or continued routine gas flaring in the country after December 2008.
He explained that the Flare Reduction Committee would limit its mandate to gas flare reduction adding that its terms of reference include the review of each company’s flare reduction programme to ascertain whether any acceleration is realistic and, where possible, to a decision on how this can be achieved.
The committee, he noted, was directed to conduct an assessment of health and environmental consequences of continuation of routine flaring and to integrate individual company plans into a Nigeria Flare Reduction Plan and Nigeria’s Gas Master Plan.
The GGM added that the gas committee would look for opportunities for co-operation between operators and for demand clusters and amend the Flare Reduction Plan as required following agreement with all stakeholders.
Other tasks before the committee include developing and implementing of a communication strategy that clearly lays out how and when flare reduction will take place; agree on clear milestones and action plan with the assistance of the Department of Petroleum Resources (DPR) and monitoring the implementation of the integrated Nigeria Flare Reduction Plan.
“In an effort to achieve the gas flare-out target set for 2008, major stakeholders recently came together in a newly created forum for cooperation that will develop a road map for the elimination of flaring within a realistic time frame, taking into account the complex challenges that inhibit a faster reduction of gas flaring in Nigeria.
“High-level representatives from several ministries and sector companies agreed at the meeting to establish an ad hoc Flare Reduction Committee to reduce routine flaring to a minimum within the shortest possible time frame. The work of the Committee, which is being facilitated by the World Bank Global Gas Flaring Reduction Partnership (GGFR), aims to be forward looking, act quickly, with a clear deadline and mandate to manage flare reduction in Nigeria," Ajuonuma said.
“In the process of oil production, Nigeria flares or burns about 24 billion cubit meters (or 0.84 trillion cubic feet) of associated natural gas every year. The World Bank GGFR estimates that globally, 150 billion cubic meters (or 5.3 trillion cubic feet) of associated natural gas are being flared and vented annually. That is equivalent of 25 per cent of the United States gas consumption or 30 per cent of the European Union gas consumption per year. It is also estimated that global gas flaring releases about 400 million tons of CO2 per year into the atmosphere," he said.
Some of the major inhibitors to a faster gas flaring reduction in Nigeria include: lack of adequate infrastructure to transport the gas, inequitable gas pricing, lack of capital for gas utilisation projects, security issues in the Niger Delta.
Speaking on the issue, Minister of State for Gas, Mr. Emmanuel Odusina, who is also the chairman of the committee, assured Nigerians that government and the industry remained fully committed to the elimination of routine flaring.
"We share responsibility for not achieving bigger results, some progress in flaring reduction has been achieved but it is clearly not enough. That is why we have created this Flare Reduction Committee to come up with a road map for elimination of routine flaring within a realistic time frame, in a joint effort by government, industry and other stakeholders so we can attain bigger gas flaring reduction," Odusina said.
The World Bank had at the last December Global Forum on Flaring Reduction and Gas Utilisation in Paris, called on oil producing countries and companies to step up efforts in reducing the flaring of natural gas as a way of mitigating the impact of climate change and lowering greenhouse gas emissions.
The Gas Flaring Committee is made up of heads of Ministry of Energy (Gas), Ministry of Energy (Petroleum), Ministry of Finance, Department of Petroleum Resources, National Planning Comm-ission, Special Advisors to the President on Petroleum, Revenue Mobilisation Allocation and Fiscal Commission, NNPC, World Bank GGFR and all the multi-national oil companies.
