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RIGZONE.com: Shell to Spend $1.55 Billion to End Gas Flare in Nigeria

Shell to Spend $1.55 Billion to End Gas Flare in Nigeria 

    

By Vincent Nwanma, Dow Jones Newswires     

 

LAGOS (Dow Jones Commodities News via Comtex)

 

Shell Petroleum Development Company of Nigeria, a unit of Royal Dutch Shell PLC (RDSB) (RDSB.LN) says it will spend an additional $1.55 billion to end gas flaring from its operations in Nigeria.

 

This amount will be used to capture gas still being flared from 28, out of its 75 flowstations in Nigeria, SPDC said in a statement sent to Dow Jones Newswires Wednesday.

 

Tuesday a Nigerian court ruled that SPDC must stop gas flaring in the Iwherekan community in Delta State by April 2007, the U.K.'s Guardian newspaper reported Wednesday.

 

The statement by SPDC made no reference to the judgment. “We are yet to receive the text of the judgment, so we cannot comment on it,” an official of the company told Dow Jones Newswires.

 

The statement said SPDC is committed to ending gas flaring in Nigeria operations in 2009. “This requires the company to gather and bring to market gas from more than 1,000 wells, which is a big undertaking,” the company said.

 

It said the joint venture between SPDC and the Nigerian government has made a “significant” investment of $2.3 billion “to develop major associated gas gathering projects to collect gas from our fields scattered across the Niger Delta.”

 

The Nigerian government has set 2008 as the deadline to end gas flaring in the country. However, SPDC said last year the deadline was not feasible, citing constraints imposed by inadequate funding for gas projects.

 

Copyright (c) 2006 Dow Jones & Company, Inc. 

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