Sufuyan Ojeifo
26 November 2008
Abuja — Department of Petroleum Resources (DPR) yesterday told the Senate Committee on Gas that N15 billion were paid as penalty for gas flaring by oil companies in the last three years.
The total collection for gas flaring paid through the DPR, which was presented to Senator Osita Izunaso-led Committee at yesterday's public hearing on a gas flaring bill, indicated that the money was paid as penalty between 2006 and October 2008.
According to the presentation, $20,420 million (N2.2 billion) was collected in 2006; $81.9 (N10.26 billion) was collected in 2007, while $18.283 million (N2.123 billion) was collected between January and October this year.
In all, the DPR said a total of $120.67 million (N15.008 billion) was collected as fine for gas flaring.
DPR officials who spoke at the Senate Public Hearing, also said oil companies were yet to commence paying the new $3.5 per million standard cubic feet (scf) fine prescribed for gas flaring which commenced in April, 2008.
Also yesterday, officials of Shell and Agip, in their presentations said they were committed to the objective of gas flare down by the Federal Government.
Upstream Business Division Manager, Nigerian Agip Oil Company Limited, Mr Akintunde Carim, told the Committee that it was supplying its generated electricity to the national grid.
Carim said this while responding to Senator Patrick Osakwe's observation on the company's supply of electricity to its neighbouring communities in Kwale, where it produces 480 MW of electricity.
On what proportion of electricity generation it was supplying to the community, Carim, however, could not give an answer.
In a related development, the Nigerian National Petroleum Corporation (NNPC) will today hold a meeting with the Host Communities in Abuja.
The meeting, according to an Executive Director of NNPC, Mr Chris Ogienmwonyi, was geared towards resolving issues otherwise articulated by militants in the oil rich region.
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