House of Representatives Plans Legislation to Address Gas Flaring Issues in Nigeria

ABUJA - The House of Representatives Ad-hoc Committee investigating gas flaring in Nigeria from 2013 till date has announced plans to propose legislation aimed at enforcing the use of uniform meters for companies and regulators in the gas industry.

The committee, chaired by Hon. Ahmed Munir representing Lere Federal Constituency (APC, Kaduna), made this known during its resumed hearing at the National Assembly Complex, Abuja on Tuesday.

Hon. Munir expressed concerns that oil companies and officials from the Federal Ministry of Environment have not been adequately addressing the issue of gas flaring. He highlighted how the reported volumes of gas flared claimed by oil companies surprised government officials, signaling the need for a more accurate and transparent tracking system.

The primary goal of the investigative hearing is to promote synergy between regulators and oil companies in the gas industry and develop effective strategies for addressing gas flaring.

Hon. Munir stated, "The whole idea is to ensure that the gas industry, every player in this business, has a meter so that we can determine the actual amount of gas flared. And in cases where there is no meter, how can the gas tracker effectively fill the gap? We need legislation and policies to ensure that figures regarding the volume of gas flared are not solely determined by the players in the industry."

The committee aims to establish checks and balances to ensure accurate reporting and effective penalties for gas flaring. It will listen to stakeholders, collate information, and take necessary action based on its findings.

Idris Musa, the Director-General of the National Oil Spills Detection and Response Agency (NOSDRA), stressed the importance of metering as a critical issue in the gas sector. He highlighted how different meters used by operators make it challenging to determine the precise volume of gas flared and impose appropriate penalties.

Musa called for a benchmark for regulators, stating, "This is the grey area the committee should address; it is not just about Exxon Mobil alone, but all oil companies need to provide evidence."

During the hearing, Adesua Dozie, the Vice Chairman of Mobil Producing Nigeria Unlimited (MPN), revealed that Exxon Mobil paid $129 million as fines for gas flaring during the period under review. MPN also contributed $124.2 million to the federal government's consolidated revenue account as a penalty for gas flaring. Chevron PLC's Reservoir Manager, Chile Ogala, disclosed that their company paid a total of $72.66 million as fines for gas flaring from 2012 until now.

The proposed legislation will play a pivotal role in ensuring that gas flaring issues are effectively tackled in Nigeria. It aims to establish uniform meters and encourage cooperation and transparency among all stakeholders in the gas industry.

The House of Representatives Ad-hoc Committee's efforts are a step towards addressing environmental concerns, preserving natural resources, and promoting sustainable practices in the country's oil and gas sector.

Source of content: OOO News 2023-09-06 News

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