The moves of Shell Petroleum Development Company to execute some gas gathering projects have been affected as a result of lack of funds.
The leading oil and gas producer maintained that funding challenges have resulted in delays to two major associated gas gathering projects that were expected to deliver an additional 35per cent reduction in flared gas by 2014-15.
The report disclosed that despite these challenges the overall trend in flares reduction is positive and SPDC continues to invest in major gas gathering projects that will drive further reductions.
It indicated that SPDC has monitored ambient air quality levels around its flare sites since 1998 and regularly reports the results to government authorities, as required by Nigerian regulation. The report maintained that SPDC monitoring data shows that air quality around our flare sites complies with these standards barring occasional operational issues.
It indicated that these standards are equivalent to international air quality standards followed in the EU, US and those set by the World Health Organisation.
The report maintained that the monitoring work is also carried out by independent contractors. SPDC recognises the importance of addressing local communitiesâ€™ perceptions and concerns about flaring, in addition to complying with regulations.
It indicated that to reduce the number of operational spills, the SPDC JV is focused on implementing a work programme to appraise, maintain and replace key sections of pipeline.
â€œ132 km of new pipelines were installed during 2014, bringing the total for the last four years to more than 900km. The SPDC JV pipeline network is covered by surveillance contracts to ensure that spills are discovered and responded to as quickly as possible.â€
â€œThere are also regular over-flights to detect new theft points. In 2014, the SPDC JV signed a series of agreements with communities in Ogoniland â€“ which has seen some of the highest rates of theft in recent years â€“ using the Global Memorandum of Understanding (GMoU) model through which the majority of SPDC JV social investment projects have been delivered since 2006. Under these Ogoni GMoUs the JV provides funding to support unarmed community patrols which report pipeline incursions and suspicious activity directly to the security forces.â€
â€œSPDC meanwhile works with communities and civil society across the Niger Delta to build greater trust in spill response and clean-up processes. Representatives of the principal NGO coalition in the Niger Delta, National Coalition on Gas Flaring and Oil Spills in the Niger Delta (NACGOND), are invited to join all joint investigation visits (JIVs), by which the cause and extent of oil spills is assessed. SPDC is the only oil and gas company operating in Nigeria to publish its spills data online,â€ it concluded.