The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said
800 companies have indicated interest to manage 176 gas flare sites in Nigeria.
Kachikwu said on Thursday that the government had received bids of 226 firms that paid the stipulated fees out of the 800 companies that expressed interest in managing the sites.
He said that the government was working hard to stop gas flaring in the country by the year 2020, 10 years ahead of United Nation’s deadline.
“Over 800 companies have expressed interest to manage about 176 gas flare sites and out of the total companies, about 226 have paid the stipulated fees and their bids had been received,” he said.
He said that it was unfortunate that Nigeria had over the years failed to properly utilize its gas resources for the development of the economy.
According to him, the country is yet to use the tonnes of gas resources it has to achieve industrialisation and agricultural development, especially through fertilizer production.
He decried the practice of flaring a significant volume of gas produced in the country, thus depriving Nigeria the benefits that could have been accrued from the resources.
“Premised on the foregoing, the policy position of His Excellency, President Muhammad Buhari, is that gas flaring is totally unacceptable.
“In this regard, the Federal Government of Nigeria initiated a number of actions to reaffirm its commitment to ending the practice of gas flaring in our oil fields.
“Furthermore, in recognition that flared gas could be harnessed to stimulate economic growth, drive investments and provide jobs in oil producing communities and indeed for Nigerians through the utilisation of widely available innovative technologies.
“The Federal Executive Council in June 2016, approved the Nigerian Gas Flare Commercialisation Programme (NGFCP),” he said.
The minister explained that the NGFCP was a key component of the National Gas Policy, which sought to end gas flaring, create an enabling environment for investors, seek value addition for gas and improve governance in the sector.
He further stated that the NGCFP would ensure zero gas flare by 2020.
“We must stop gas flare and other hazards associated with gas flaring in Nigeria. We must also ensure that oil and gas production do not become harmful to our citizens,” he added.
In his remarks, the Chairman of the Ministerial Steering Committee of the NGFCP, Mr. Rabiu Suleiman, said the committee would endeavor to recommend the best governance structure prior to the Department of Petroleum Resources (DPR) carrying on with the programme as a statutory function immediately after the first auction rounds.
He noted that the NGFCP was designed as a strategy to implement the policy objectives of the Federal government for the elimination of gas flares with potentially enormous multiplier and development outcomes for Nigeria.
MM/GIK/APA