Texas — The Federal Government has shifted the gas flare-out deadline to December 31, 2011 for the umpteenth time, five months after the expiration of the December 2008 deadline, underscoring funding constraints, dwindling production and security challenges in the Niger-Delta.Despite government posturing, no closures of any fields were carried out by the Department of Petroleum Resources (DPR).

Mr. Igo Aguma, Chairman, House of Representatives Committee on Gas, said this yesterday while speaking with newsmen at the on-going Offshore Technology Conference (OTC).

He added that the consideration of 2011 date by the National Assembly is a follow-up to the request of the Nigerian National Petroleum Corporation (NNPC).

This, according to him, is to enable the operators of the Joint Venture (JV) fields on behalf of the Federal Government to address factors militating against the attainment of zero flare.

These operators include multinational oil firms: Shell Petroleum Development Company (SPDC), Chevron Nigeria Limited, Mobil Producing Nigeria Unlimited (MPN), Nigeria Agip Oil Company (Naoc) and Elf Petroleum Nigeria Limited (EPNL).

Aguma said infrastructure needed to transmit associated gas from the oil fields to the markets instead of flaring was a major challenge which will require a minimum of two years to complete successfully.

"We are all aware that there is currently a gas utilisation programme ongoing to support the power industry. We also know the capacity of the industry to receive the gas that is being flared. So, projects needs to go on before we can have a zero flare out date," he said.

The chairman, who spoke while inspecting exhibition stands of companies registered by the Petroleum Technology Association of Nigeria (Petan) participating at OTC lamented that the flare-out date is also subject to the availability of funds for investment in the industry.

He noted that the NNPC is a major stakeholder in each of the gas utilisation projects needed to achieve the flare-out deadline.

"If NNPC that is trusted with the management of JV operations on behalf of the Federal Government has agreed that adequate time is needed to raise funds required to complete major infrastructure and gas utilization projects, without pre-empting the final decision of the House of Representatives on the gas re-injection bill which we have just concluded the public hearing as the chairman of the Gas Committee, there is already a consensus about 2011 as the possible date feasible for ending gas flaring in Nigeria," he noted.

It would be recalled that Mr. Billy Agha, Acting Director, DPR who was then the head of Gas Division had threatened to penalize oil firms after the expiration of the December, 2008 deadline regardless of the likely impact on the country's production.

The expectation was that the move would compel the companies to take the President Umaru Yar'Adua administration serious.

The gas flare-out deadline has been postponed severally after expiration of the first deadline in 1984 without a significant reduction in volume of flared gas.

However, Agha who was appointed as acting director of DPR in February 2009 two months after the expiration of the December 31, 2008 deadline denied knowledge about the choice of the 2011 date.

He also failed to disclose the number of fields shut down and errant companies penalised for flaring gas since the beginning of this year.

Checks with some of the multinational oil firms revealed that even the 2011 date is also unrealistic as a result of delay suffered by projects designed by them for bringing an end to gas flaring.

"If there is commitment by the Federal Government in terms of providing adequate funds to finance its equity in these projects, we can then look at 2013 date as the possible date," a multinational operator assured.

"It will be a waste of resources to talk of deadline without finding an immediate solution to the activities of Niger Delta youths disrupting execution of gas projects by our contractors."

It would also be recalled that in early 2008, senior officials of Chevron Corporation who made a presentation to Mr. Emmanuel Odusina, former minister of State for Gas had suggested 2013 as the possible date for ending gas flaring.

The company listed vandalism and insecurity in the Niger Delta as the reasons for making arrangement for the construction of an offshore gas pipeline to connect the existing Escravos Lagos Pipeline to the Olokola Liquefied Natural Gas (LNG), power stations in Lagos and the West African Gas Pipeline.