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Nigeria: Oil Coys to Fix Gas Flaring Terminal Date - FG
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Daily Trust (Abuja)
2 May 2008
Posted to the web 2 May 2008
Mohammed Shosanya
Lagos
Indications have emerged that the Federal government will no longer foist terminal date of gas flaring on multinational oil companies in the country.
In the light of the development, the Federal government said the volume of flaring by each oil company is now included in the supply obligation such that it attracts a penalty fee of $3.50/mscf for defaulters.
Director of Department of Petroleum Resources (DPR), Tony Chkwueke, who stated this during the agency's first quarter media briefing in Lagos, explained that the development will pave way for individual oil companies to determine their own terminal date for gas flaring.
The Federal government had initially fixed 2008 as end to gas flaring in the country. But the oil companies had said the date is not feasible citing the need for extended date to be able to tidy up their gas flaring date. The National Assembly and some non governmental agencies had however called the bluff of the oil companies insisting that the 2008 terminal date for gas flaring should hold.
According to Chkwueke: "DPR and exploration and production companies are presently revising the agreeable flare out date in the light of the new penalty.
He also said the agency has developed the approved National Development Domestic Gas Supply and Pricing Regulation as well as an updated production, utilization and flared up to 2007.
On the ongoing labour crisis in Exxonmobil Corporation in the country which forced the company to shut in about 800,000 barrel of oil production, the Director said the crisis will have a real effect on the country in terms of oil output.
He recalled that Total and Shell has shut in 400,000 and 170,000 barrels of crude oil respectively in recent time. "It is a real strategic national issue that should not be wished away."
Commenting on oil spillage during the quarter, he said 152 spill incidents were reported[i.e a spillage of about 239 barrels].
"Over 50 percent of the spillage were reported to have been caused by third party interference.Sabotage cases reduced between October 2007[16cases] to February 2008[zero]but significantly started increasing in 2008.
"10 accidents reported in the quarter under review with four fatalities.Comparatively the number of accidents and fatalities recorded for fourth quarter of 2007".
According to him, during the quarter, a total of one hundred and seventy four[174]vessels loaded a nominated volume of 129,515.9MB while 60,130.00 of crude oil were lost as a result of pipelines vandalization..
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He further revealed that the agency recorded increase in the number of application for license and permits.
"There is an increase in the numbers of applications from 542 in the last quarter to 1059 in 2008 first quarter.
He however said six companies were denied permits due to irregularities such as forged documents, lack of expertise etc.
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