Seplat Energy’s gas flaring penalties surge by 50% in 2023

In the period from January to September 2023, Seplat Energy reported penalties for gas flaring amounting to N2.6 billion, as per the company’s financial statement for the first three quarters of the year. This figure signifies a substantial 50% increase from the N1.3 billion that Seplat paid for the same period in 2022.

The financial statement indicated that operational and maintenance expenses encompass maintenance costs, warehouse operations expenses, security expenses, community expenses, clean-up costs, direct staff costs, fuel supplies, and catering services. Additionally, the statement highlights a gas flare penalty of N2.6 billion for the year 2023, compared to N1.3 billion in 2022.

This increase in penalties for gas flaring suggests a growing focus on environmental sustainability and the need to reduce harmful emissions in the oil and gas industry. Gas flaring penalties are imposed to discourage the wasteful practice of burning off excess natural gas during oil production and processing.

Data from the National Oil Spill Detection and Response Agency (NOSDRA) has revealed that gas flaring has had a significant economic impact, with the Federal Government reportedly losing approximately N843 billion between January 2022 and August 2023 due to gas flaring. This highlights the urgency for oil and gas companies to adopt cleaner and more environmentally responsible practices.