Gas flare penalty increased to US$2 per 1000 scf

The Nigerian government have increased gas flare penalty from N10 to $2 or N612.8 per thousand standard cubic feet (scf) of gas.

This penalty applies to any firm that produces 10,000 barrels of oil per day and above. For firms producing less than 10,000 barrels, the penalty will be US$0.5 or N153.2 per 1000 scf of gas.

In respect to this increase, the government in its Flare Gas (Prevention of Waste and Pollution) Regulations 2018 publication, also notified the general public of a fine of N50,000 or a six months jail term or both, for anyone who gives an inaccurate flare data.

Mr Justice Derefaka, the Programme Manager of Nigerian Gas Flare Commercialisation Programme; said the new gas flare regulation demands that the producer will not accountable for situations where; “the flaring was as a result of war, community disturbance, insurrection, storm, flood, earthquake or other natural phenomenon beyond the reasonable control of the producer.”

According to the new regulation, all gas flare logs must use data on metering equipment at the various producers’ facilities. Also the logs must be in the producers’ safe custody for no less than 36 months.

source: Vanguard

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