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Business Day (Nigeria): Shell plans to spend N228.6bn to stop gas flare

June 11th, 2007
OLUSOLA BELLO

Royal Dutch Shell plc says it plans to spend $1.8-billion to end gas flaring in the Niger Delta, even though it may not meet the 2009 deadline it set for itself to end gas flaring.

The company says it has spent a total of $3-billion (N381-billion) in tackling the problem.

The company is blaming it inability to meet the deadline on the security situations in the Niger Delta, which has delayed it plans to end gas flaring.

It had earlier declared that it would not be able to meet the 2008 deadline given by the Federal Government, but rather January 2009.

Malcolm Brinded, head of Shell’s exploration and production business, told Thomson Financial News on the sidelines of an oil and gas conference in London, that ‘security and funding remain a challenge’ to the group’s plan to stop flaring.

Shell’s facilities in the oil-rich Niger Delta have been the target of the series of violent attacks by separatist militants who have been kidnapping employees of foreign oil companies and blowing up pipelines. This has forced the Anglo-Dutch oil giant to shut some of its key facilities in the area.

Outages in Nigeria were partly behind the decline in Shell’s 2006 volumes to 3.473-million barrels of oil, equivalent per day. Shell is the largest oil producer in Nigeria, contributing nearly half of country’s daily output of over 2.5-million barrels.

Information from the Department of Petroleum Resources indicated that the company flared a total of 141,214.94-million standard cubic feet of gas or 20 percent total gas generated in the country, which was put at 717,174.99MMscf, while it utilises 575,960.05 of the gas produced.

A high court in Nigeria ruled in November 2005 to put an end to oil companies’ damaging practice of burning off waste gas.

Shell appealed on the court action, along with the other oil and gas producers, who were given until April this year to stop gas flaring.

Nigeria has been the world’s biggest gas flarer, and the practice has contributed more greenhouse gas emissions than all other sources in sub-Saharan Africa combined, according to Friends of the Earth, quoting a 2002 World Bank report.

The toxic substances which have been emitted in the flares for over 40 years have exposed Niger Delta communities to health risks and property damage, Friends of the Earth said.

http://www.businessdayonline.com/?c=52&a=13821

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1 Comment on “Business Day (Nigeria): Shell plans to spend N228.6bn to stop gas flare”

  1. #1 udosen Emmanuel
    on Jun 13th, 2007 at 11:48

    hi.

    Thanks for considering spending huge amount to tackle this issue of gas flaring,really i feel bad to believe that Nigeria as a country still flares gas.
    Honestly,your company`s is in the positive direction to reduce the impact of gas flaring and its associated implication to our environment.
    i happen to come from the rich Niger-Delta region and also a Petroleum Engineering undergraduate of the University of Port Harcourt,Port Harcourt,Nigeria.

    Recently, i wrote a research paper titled:TACKLING THE ENVIRONMENTAL CHALLENGES:A CASE STUDY OF THE NIGERIAN GAS INDUSTRY.

    Once again,thanks for a positive drive towards ensuring that the Niger-delta becomes environmental friendly.

    from: udosen emmaunel

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