Four African countries, Angola, Cameroon, the Republic of Congo and Gabon were among nine leading global crude oil producers that joined chief executives of major oil companies to agree with senior government officials to ending gas flaring at oil production fields by 2030.
It was, however, not clear why Nigeria, reputed as Africa’s largest crude oil and gas producer, was not listed among the signatories to the treaty even when she is faced with severe challenges arising from gas flaring at onshore/offshore production sites by international oil companies, including Shell.
More worrisome about Nigeria’s absence at the zero gas flare out signing ceremony is the fact that her outgoing Petroleum Resources Minister, Mrs. Diezani Alison Madueke, currently serves as the President of the Organisation of Petroleum Exporting Countries (OPEC).
However, a source, which pleaded anonymity attributed the country’s non-representation at the zero flare initiative to the impending change of political leadership following the outcome of the March 28 presidential election and the uncertainty over the new policy direction of the incoming Muhammadu Buhari administration.
The “Zero Routine Flaring by 2030” initiative – already endorsed by nine countries, 10 oil companies and six development institutions – was launched last weekend by United Nations Secretary-General, Ban Ki-moon and World Bank Group President, Jim Yong Kim. They were joined by Royal Dutch Shell Chairman, Jorma Ollila; Statoil CEO, Eldar Sætre; Norwegian Foreign Minister, Børge Brende; Gabonese Minister of Petroleum, Etienne Dieudonne Ngoubou and several other senior government and corporate officials, and representatives of international development banks. The group collectively represents more than 40 per cent of global gas flare out.
Every year, around 140 billion cubic meters of natural gas produced alongside with oil is wastefully “flared” at thousands of oil fields around the world, resulting in more than 300 million tonnes of carbon dioxide being emitted to the atmosphere – equivalent to emissions from approximately 77 million cars.
But if this amount of associated gas were used for power generation, it could provide more electricity (750bn KWh), which is more than what the entire African continent is consuming today. However, stakeholders were worried that this volume of gas is flared for a variety of technical, regulatory and economic reasons or because its use is not given high priority.
“Gas flare out is a visual reminder that we are wastefully sending CO2 into the atmosphere,” said Jim Yong Kim. “We can do something about this. Together we can take concrete action to end flaring and to use this valuable natural resource to light the darkness for those without electricity,” he stated.
By endorsing the initiative, governments, oil companies and development institutions recognise that routine gas flare out is unsustainable from a resource management and environmental perspective hence the agreement to cooperate to eliminate ongoing routine flare out as soon as possible and no later than 2030. They will publicly report their flaring and progress towards the target on an annual basis. Furthermore, routine flaring will not take place in new oil fields developments while governments will provide operating environments conducive to investments and to the development of functioning energy markets.
“As we head towards the adoption of a meaningful new international climate agreement in Paris in December, these countries and companies are demonstrating real climate action,” said UN Secretary-General, Ban Ki-moon. “Reducing gas flare can make a significant contribution towards mitigating climate change. I appeal to all oil-producing countries and companies to join this important initiative,” he said.
Oil companies and governments that have yet to endorse the initiative are currently undertaking comprehensive reviews of their gas flare out with hopes to join the initiative in the coming months.
Commenting on the development, Solomon Asamoah, Vice President, African Development Bank (ADB) said: “We welcome this global initiative to end routine flaring no later than 2030. The African Development Bank’s strategy for the period 2013 – 2022 has inclusive and green growth as the over reaching objectives and this initiative is clearly aligned with our strategic focus of sustainable development.”
Also reacting, Claudio Descalzi, the chief executive officer at Eni, a major producer said, “for many years, Eni has been committed to tackling climate change by reducing gas flaring and developing natural gas production and distribution programmes, contributing to the development of local energy systems. Eni’s endorsement of the initiative reflects our continuous commitment in pursuing our efforts to minimise the environmental impact of our operations.”
But according to Peter Enga, Production Manager, SNH (Cameroon), “launching this zero-routine-flaring initiative focuses global attention to various instruments to be put in place and targets to be set by adhering countries, companies and development partners to achieve the said goal.”
Also speaking, Jorma Ollila, Chairman, Royal Dutch Shell with extensive operations in Nigeria’s Niger Delta region, noted that, “ending routine flaring is a practical way to lower CO2 emissions while meeting the world’s energy needs. The “Zero Routine Flaring by 2030” initiative renews Shell’s existing efforts in this field. I call upon governments to support this initiative and work with the oil and gas industry to make it a success,” he maintained.
According to Patrick Pouyanné, CEO, Total, “Total believes that reducing flaring at oil fields is an important contribution towards mitigating climate change, and that is why we made the decision 15 years ago to eliminate routine flaring in all new projects. This policy continues to guide the company and that is why Total fully supports the global initiative to eliminate routine flaring by 2030,” he noted.
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