as much as N258b yearly, which would have accrued after a review of fiscal penalty, fine of $3.50 per 1, 000 standard cubic feet of gas flared.
While GFT has been handed over to the National Oil Spill Detection Response Agency , its satellite-generated data is reportedly safe from manipulation as it collects information on gas flare in oil fields across Nigeria every 24 hours, and sums them up every month. While the situation is projected to worsen challenges faced by the Federal Government’s attempt to ensure zero gas flaring latest by 2020, the Associated Gas Re-Injection Amendment Decree Seven of 1985 introduced a two kobo per million standard cubic feet as punishment for gas flaring, which was later increased to 50 kobo in 1990. It was N10 per Mscf in 1998 as a Ministerial Directive in 2011 proposed $3.50 per 1000 scf, but became effective in 2018.
An energy expert, Madaki Ameh, who said the development amounts to tax evasion by the IOCs, noted that the companies were deliberately adopting environmental standards different from what obtains in their countries, or elsewhere in the world where they operate. This, he said, was due to the country’s lax and compromised regulatory environment.
“Is it surprising that production cost of a barrel of oil in Nigeria is one of the highest in the world? The production costs go to the producers. The JV shares the profit. Gas flaring fines are paid by the JV partners. Do you see the perversity in the arrangement? It is impossible for the government to come down hard on the companies. They are inextricably connected in the business.
It is expected that if fines re increased for gas flaring, there should be a reduction in the flaring!
Thanks for sharing
The fine should be a lot more than it is. Flaring is killing our environment. stopgasflaring