Nigeria Content Online

The Anglo-Dutch oil
giant, Shell Petroleum Development Company (SPDC), has been accused of
not being truthful in its decision to end gas flaring in Nigeria.

Friends of the
Earth International, an environmental organisation dedicated to
preserving the health and diversity of the planet for future
generations, said Shell has once again flouted its promise to cut down
on its gas flaring activities.

In a statement
yesterday, the group said, “Friends of the Earth International condemns
the increase of this unnecessary and harmful practice and calls on the
Nigerian government and the international community to force Shell to
stop flaring.”

The group’s
condemnation is coming a week after Shell announced the signing of a
$101 million contract with Saipem Contracting Nigeria Limited for a
pipeline system that it said will gather a huge percentage of its
currently flared associated gas to be used in the domestic gas market.

However, Friends of
the Earth International said despite promises made by Shell since the
1990s to stop flaring the ‘associated’ gas released in oil production
in the country, the company flared more gas in 2010 than it did in
2009. This, according to the group, came to light from the
sustainability report brought out by Shell last week.

Nnimmo Bassey,
director of Friends of the Earth Nigeria and chair of Friends of the
Earth International, said, “According to its own figures, Shell flared
over 30 per cent more gas in 2010 than in 2009. This, according to
them, was mainly due to increased production in Nigeria and new
activities in Iraq.”

He added that
“Shell has been flaring gas in Nigeria since 1958. Though gas flaring
has been illegal, to them it is a standard industry practice. They
continue to reap obscene profits from the oil fields of Nigeria at the
expense of the lives and the livelihoods of the poor people. While they
speak from both sides of their mouths, we see that they are increasing
the volumes of gas flared and are thus intensifying their poisoning of
the environment and the peoples of the region.”

According to him,
they engage in this unacceptable and illegal activity just for the
maximisation of their profits. “Gas flaring is an act of ecocide and
everyone should join us to demand that Shell stops this madness,” he
added.

He insisted that
the company knew that its antics would be open to public scrutiny when,
to coincide with the release of the Sustainability Report, it hastily
announced the signing of a $101 million contract for a pipeline system
that it claimed will gather 90 per cent of currently flared associated
gas to be used in the domestic gas market.

He noted however,
that, “We are not deceived in any way. Our position has always been
clear and articulated on this matter. Shell does not respect the people
and environment of the Niger Delta. It will rather continue making
obscene profits and foul the air with the noxious fumes than capture it
and process into natural gas to the benefit of the people.”

The Shell Report

Precious Okolobo, a
spokesperson for Shell, said the company has released a detailed
analysis on its gas flaring up to date and that he had no further
explanation to make. He refused to comment, referring the reporter
instead to the report.

The analysis,
titled ‘Shell in Nigeria; Gas flaring’ and dated April 2010, said SPDC
and its joint venture partners are committed to ending the routine
flaring of gas as soon as possible and are working towards that goal.

According to the
firm in the report, in 2000, the Shell Development Company of Nigeria
Limited (SPDC) joint venture (JV) began an ongoing multiyear programme
to install equipment to capture gas from its facilities.

However, it said
the programme has been delayed by events outside its control, such as
funding shortfalls from Nigerian National Petroleum Commission (NNPC)
(the government-owned majority shareholder of the JV); security
concerns, which meant it was not safe for staff to work in large parts
of the delta for long periods of time; and delays in NNPC contract
approval processes.

“Despite the
delays, between 2000 and 2009, SPDC installed Associated Gas Gathering
(AGG) infrastructure at 33 sites, covering over 60 per cent of its
associated gas production. Unfortunately, 18 of these facilities were
either vandalised or not commissioned because of the crisis in the
delta in recent years.

“In total, SPDC
flaring dropped by more than half between 2002 and 2010 from over 0.6
billion cubic feet a day (bcf/d) to less than 0.3 bcf/d, although
production losses contributed to this decline.”

The firm says it is
partnering with the Nigerian government and the World Bank to identify
suitable Nigerian investors that would collect associated gas from
flare sites for small scale local projects. It added that over 30
potential investors have indicated their interest in this scheme and
SPDC is supporting the screening and selection processes.

This report, however, is what ERA/FoEI are contesting.

‘Our gas flaring complies with the law’

Shell said that the
gas it continues to flare complies with the law, and it would continue
its production which entails flaring until instructed otherwise.

“Where SPDC continues to flare, it complies with the law,” the firm said.

“The minister for
petroleum has the power to permit companies to flare on agreed terms
and conditions. The only way to end flaring at flare sites without AGG
equipment would be to stop oil production. This decision cannot be made
by SPDC without direct support from other JV partners, including the
government-owned majority partner NNPC.

“In a letter dated
31 December 2008, the government directed SPDC and other oil companies
to continue with production (and, therefore, flaring) until instructed
otherwise,” it added.

Just last week,
Shell announced the signing of a $101 million contract for a pipeline
system that will allegedly gather a huge percentage of its currently
flared associated gas which it claimed will be used in the domestic gas
market.