Seplat Energy is budgeting $11.5m for the reduction of gas flare in the Niger Delta communities where it operates.
The oil and gas firm said in its annual report seen by THE WHISTLER that its target to eliminate routine flares was reduced to the minimum.
In 2021, the Nigerian National Petroleum Company Ltd report showed that Seplat recorded the worst flaring rate in percentage term as it flared 100 per cent of the 116 million Standard Cubic Feet (SCF) of gas it produced.
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It secured the Federal Government’s backing to end gas flaring in 2024. It also committed to net zero by 2050.
Seplat said, “In 2022, improvements in the performance of the AG compressor in Oben and Amukpe, alongside regular asset integrity checks and other facility improvement activities, were effective and AG flare volume was reduced by 18.2 per cent at Oben (5.7mmscfd against 6.97mmscfd in 2021) and by 39.9 per cent at Amukpe (1.1mmscd against 1.83mmscfd in 2021).”
But the oil firm said it has set aside $11.5m for projects that will end routine flares.
Seplat also said it has committed $1m to plant trees across the country.
It said, “We have committed $11.5 million in 2023 towards projects that will end routine flares in our operations, including $10.8 million towards installing gas compression facilities at the flow stations in Amukpe, Oben and Sapele, and $0.7 million towards incineration at the Amukpe flow station.
“Upon completion of these projects, we expect to improve our gas handling capacity and reduce flares by c.30 MMscfd in 2023 and c.20 MMscfd in 2024, which will in turn monetise flare gas in line with our corporate strategy and the national flare gas commercialisation initiative.
“In addition, we have committed $1 million towards planting trees across Nigeria as part of afforestation efforts that will capture residual emissions. Our focus in 2023 will be on mobilising community stakeholders and completing land acquisition to enable the commencement of tree planting in Imo, Edo and Abuja.”