The Senate yesterday passed a new bill, which provided for penalty against gas flaring and other malpractices in the oil and gas sector. The last legislation on gas flare, the Associated Gas Re-injection Act of 1979, came into force 40 years ago, and since then there has been no review or amendment of the Act despite its devastating effect on the host communities.
One of the highlights of the new Bill is that any licensee who supplies inaccurate data to the Department of Petroleum Resources (DPR) or to any other lawful authority will be liable, upon conviction to a fine of N10 million or be committed to prison for a term of six months or both.
Other objectives of the Bill include ensuring that natural gas is not flared or vented in any oil and gas production operation, block or field, onshore or offshore, or any gas facility, which shall commence operations after the commencement of the Act.
The Bill also seeks to ensure that no operator establishes an Oil and Gas facility in the country without first obtaining authorisation from the Minister for the design, commissioning and production phases.The Bill comprises 22 sections including sections on punishment for supply of inaccurate data, gas flaring penalty fee, powers of the minister to make regulations, as well as a repeal of the Associated Gas Re-injection Act 1979.
Sponsor of the Bill, Senator Bassey Albert said: “The approval of the long awaited legislation on gas flaring after 40 years is one of the best parting gifts the 8th Senate could possibly offer Nigerians at this time”