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Nigerian DPR boss laments flaring
Barry Morgan
Outgoing Nigerian Department of Petroleum Resources director Tony Chukwueke lamented that the volume of gas flared in Nigeria remains unchanged despite the government's insistance that all non-routine flaring end by 2008.
Chukwueke said "all companies are equally in default" of making arrangements to scale down the problem ahead of the deadline. This was also despite a large increase in non-associated gas production in other projects in Nigeria.
He said the proposed licensing round for Nigerian natural gas, planned originally for the end of 2006, would include new policies aimed at encouraging new investment in gas projects.
“We will want to see pipeline access provided to third parties for stranded and unutilised gas located in blocks operated by joint venture partners of the Nigeria National Petroleum Corporation (NNPC) and other operators,” he said.
In addition, common carriage provisions would be imposed on all Nigeria’s backbone infrastructure on a tariff basis, he said. The use of tax waivers to encourage the oil sector to subside gas projects would also end.
To encourage the growth of domestic gas markets and independent power producers, Chukwueke said the government intends to decouple gas prices from competing liquid fuels and “introduce full value chain economics for gas monetisation projects”.
The use of taxation waivers to allow the oil sector to subsidise gas projects will also cease, he said.
Chukwueke also hinted at “slight adjustments to fiscal terms” governing production sharing contracts in the upcoming 2006 licensing round but gave no further details.
Friday, 01 December, 2006, 23:43 GMT | last updated: Saturday, 02 December, 2006, 01:46 GMT
