Overview

The Associated Gas Re-Injection Act 1979, supplemented by the Associated Gas Re-Injection (Continued Flaring of Gas) Regulations 1984, establishes legal conditions under which oil and gas production companies in Nigeria may continue flaring associated gas. Issued by the Minister of Petroleum and Energy, the regulations specify five circumstances where flaring is permitted: (a) when more than 75% of produced gas is effectively utilized or conserved; (b) when produced gas contains more than 15% impurities (e.g., N2, H2S, CO2) rendering it unsuitable for industrial use; (c) when an ongoing utilization program is interrupted by equipment failure, provided failures are not too frequent and any single interruption does not exceed three months; (d) when the ratio of daily gas volume to distance from the nearest gas line or utilization point is less than 50,000 SCF/KM, and the gas-to-oil ratio is less than 3,500 SCF/bbl, and it is not technically advisable to re-inject; (e) when the Minister orders production from a field that does not satisfy any of the above conditions. The Minister retains authority to review, amend, alter, add to, or delete any provision. The regulations take effect on 1st January 1985. The document is a legal instrument aimed at reducing gas flaring by imposing strict criteria for exemptions, reflecting Nigeria's policy to conserve natural resources and minimize environmental impact.

Download