Gas flaring: FG to revoke operating licences of erring firms
.Gives 2019 as commencement date
By Joel ThankGod (In Abuja)
The Federal Government has declared that oil companies still flaring gas in the country would have their operating licences withdrawn, if nothing is done to stop such practice.
The Minister of State for Petroleum Resources, Dr Ibe Kachikwu made this known while addressing stakeholders at the 2018 Buyers’ Forum, organised by Gas Aggregation Company of Nigeria, GACN, in Abuja.
The Minister revealed that government would start revocation of operating licences of erring oil companies, which are not ready to end gas flaring in the country from 2019 economic year.
According to him, “Gas flaring by oil companies is not good for the economy. As such, government is ready to end such practice in the country but oil companies are still giving reasons why they cannot stop it”.
He said, “The bottom line is cash call and money. The reality is that whether or not we deal with cash call issues, it is not an optional agenda, it is a compulsive immediate agenda.
The Minister pointed out, “Gas flaring is destructive to the populace. We are also aware of the fact that such practice is intolerable in developed countries, therefore we would not tolerable it here again. I said to the Department of Petroleum Resources, DPR, that beginning from 2019, we are going to get quite frantic about this and companies that cannot meet up with extended period. The issue is not how much you pay in terms of fines for flaring the gas, the issue is that you would not produce. We need to look at foreclosing of licences and this is very urgent”.
His words, “Infact, future renewals of oil and gas licences would involve assessment of the gas components and gas flare rate of each company seeking renewals. The ones that came recently for renewals insisted they are building massive gas processing plants. We are going to follow this right through, so that the supply obligation, processing facility, treatment of gas, their submissions are very accurate and aggressive”.