- Dr. Ibe Kachikwu says the federal
government is planning to set up an
independent tracking mechanism to
ascertain the actual volume of gas that is
flared in the country
- Kachikwu says the recent rise in oil price
is not an indication of oil boom in the cost
of the commodity
- The minister discloses that crude oil alone
cannot sustain the economy and urges the
need for the country to commercialise its
gas resources
Kachikwu has said that crude oil alone cannot
sustain the Nigerian economy.
The federal government loses between
$500million and $1billion yearly to gas flare
data falsification in the country, the minister
of state for petroleum resources, Dr. Ibe
Kachikwu has disclosed.
Kachikwu according to The Nation, made the
disclosure on Tuesday, December 13, when he
spoke at the gas competence seminar in
Abuja.
At the seminar which was themed: Towards
ending gas flaring and unlocking gas potential
in Nigeria , the minister said the federal
government was planning to set up an
independent tracking mechanism next year to
ascertain the actual volume of gas that was
flared in the country.
Kachikwu said: “There is an urgency of
yesterday to drive the policy that would enable
us get out of gas flaring. I hear you talking
about 10 per cent non-compliance, meaning that
we have achieved a 90 per cent factor. My
feeling is that these numbers are very
mistaken.”
“Beginning next year, we will be putting up an
independent tracking mechanism, not relying on
figures from the IOCs (International Oil
Companies)and from DPR (Department of
Petroleum Resources), to find out really what is
the flare volume. My feeling is that there are a
lot of management of those figures to suit the
cap of the penalties that are being charged.”
The minster who noted that the commodity is
being priced in the United States (U.S.) dollar
said Nigeria loses over half a billion to a
billion of government revenue looking at the
basis of the present .
Speaking on the marginal rise in the price of
crude oil in the past few days, Kachikwu
explained that the recent rise in oil price was
not an indication of oil boom in the cost of
the commodity.
He adduced the rise in the price of crude oil
to the decisions by the Organisation of
Pteroleum Exporting Countries (OPEC) and
non- members of the cartel to cut down
production.
Kachikwu said: “Now, as good as all these may
be, the reality is that in the world, the era of
high priced oil is gone. In fact, it is going to
take a lot of work to sustain the $60 per barrel
price and it is going to take a lot of discipline
and concerted effort as well.”
He said crude oil alone cannot sustain the
economy and emphasised the need for the
country to commercialise its gas resources.
In another development, the federal
government is making plans to start
transporting oil by rail due to the spate of
pipeline bombings perpetuated by militants in
the Niger Delta region.
NAN reports that Mr Goddy Nnadi who is the
general manager of cooperate service of the
Petroleum Equalisation Fund (PEF) revealed
on Sunday, December 11 that due to the state
of the pipelines, rail transport will soon be the
main form of transport.
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