Improper Abandonement Of Oil (2)

RESEARCHED RECOMMENTATION

Oil and Gas Operators should embark on abandonment and remediation/restoration programs to address all abandoned/ suspended wells cutting across land, swamp and offshore environments and a full stop to Gas Flaring. A well is abandoned when it reaches the end of its useful life or is a dry hole. A suspended oil well may be due to marginal production of less commercial value. A well is properly abandoned when:

§ The casing and other equipment is removed and salvaged.
§ Cement plugs are placed in the borehole to prevent migration of fluids between the different formations.
§ The surface is reclaimed.

In other words with the earth movement as it tilts, the core sometimes may experience strange tremours as a result of the methane swells albeit the valve corks of pipes (drill holes) several Kilometres underground. When Methane (CH4) over-swells, it form acidic effervescent which melts its surrounding rock-beds (hard earth cores (Fe2). These cores forms into molten magmas, through further swells escape upward the bar-cores/sea-level causing earth tremours through rock cracking by heat/thermal effects on Earth-pillar beds, hence either volcanic eruption or earth quakes through upper layer tear may occur, thereby endangering the lives and properties in our communities and several others. The geological possibility is that such effect expands by its thermal nature to other underlying earth beds through contraction and expansion towards its regional outlay by the earth movements.

Some communities have experienced these underground bombardment/tremours in the past, and though its effect were not adverse, yet there is a likelihood that our communities are not safe until there is a “project decommissioning, remediation, revegetation, and refill of all canals” in the Diebu Creek Flow State by NNPC/SPDC, and Sagana River owned by Agip . These are some of the issues which if various communities seek redress in the Nigerian Court may be dismissed and lacking merit, and if on the contrary justice prevailed, no responsive and responsible government authority will be deployed to attend to the resolution of the marginalization, deprivation and violation of the fundamental human rights perpetuated against these communities by Multinational Oil companies, Governments and its officials; which may be a decision reached by the court will be carried.

Therefore it on this premise that the Association of Oil and Gas Producing Communities has applied to sue:
i. The Federal Government of Nigeria (1st Respondent).
ii. Shell Petroleum Development Company of Nigeria, Nigerian Agip Oil Company, Totalfina (ELF), and other Multinational Oil companies not here mentioned respectively as (2nd Respondents).
iii. The Nigerian National Petroleum Corporation NNPC (3rd Respondent)
iv. The Attorney General Of the Federation of Nigeria (4th Respondent)

To the International Court at Hague, Netherland of Scandinavia on a series of the aforementioned petition amongst others that has been filed and submitted to the ICJ for cross examination.

The federal government and oil operators based on this research should not wait for failure to occur before ensuring compliance with the existing international laws and industry standards and best practice. A good knowledge of these abandoned/ suspended wells and their proper evacuation shall save the nation of their potential consequences in the near future.
In a research conducted (Peter Idialu, Jimoh Ainodion, Lanre Alabi, ChevronTexaco Nigeria Limited), in mid 2002, the Federal Government of Nigeria through the Special Adviser on Petroleum Matters gave a directive that all Oil and Gas Operators should embark on abandonment and remediation/restoration programs to address all abandoned drill locations cutting across land, swamp and offshore environments, as was reiterated by the then Honourable Minister of State, Federal Ministry of environment Dr. Imeh.

GAS FLARING

The overall effects of the study of Gas Flaring in Ogba/Egbema/Ndoni communities respectively can be applicable to other bio-degradable, environmentally hazardous and toxicity of other oil bearing communities across the Niger Delta region of Rivers, Bayelsa and Delta state respectively; where Gas is flared by Multinational Oil Companies. Because geographically, the belt of Niger Delta houses similar and characterized nature of Gas Flaring in all communities, since in terms of terrain, most communities have similar environmental features. It was however noted that, with the scientific reports conducted in Ogba/Egbema/Ndoni communities (see Attached Copy), the study indicated that it can be used interchangeably to forecast effects in other communities in other Niger Delta Ijaw communities where evidence of effects can be collated and sampled.

The adverse effects of Gas Flaring, toxicity level of the emission and on human health and environment namely eye and skin irritations, the impact of acidic and corrosive rain on the accelerated rusting of corrugated roofing sheets and damages to vegetation. These were represented by oral testimonies collected from community residents in all the communities situated near the Gas Flared sites. In our communities, it is a known fact that there is early leakage of our zinc roofs, there is stunted and abnormal growth of crops, with redundant manner of planktons, grasses and other flowers without bearing nourished fruits; and certain strange skin diseases; there is also the presence of Nitrogen gases which attracts parasitic fleas such as sand fleas etc. With the above brief analysis, although it has not been scientifically and medically proven, yet could be the effects of acid rain and radiation from Gas Flares.
As part of the aspiration, the government, through the NNPC, has targeted 2008 as the flare-out date when all gas flaring is expected to stop in all oil and gas fields in Nigeria. With government and its attendant insincerity and deception, Gas Flaring was allegedly stopped in 2003 with government’s commitment by his servant (Dr. Imeh) in 1999 conference in Abuja. 2008 has come and gone, 2015 is coming, yet we have no tangible framework in the adherence to stopping gas flaring.
However, with the evident we gathered, it was discovered that; the country’s natural gas reserves is put at more than 166 TSCF (trillion standard cubic feet), with her current gas production put at 12 billion scf, which is the associated gas (AG) produced in the course of crude oil production. Current flare figure is put at about 63% of the 2 billion scf daily production of AG in response to government’s gas monetization efforts, which had included gas-flare penalties, incentives and tax credits to encourage gas-based projects, virtually all the major players are sure to beat the year 2008 flare-out date. In all of these, the government within its policy has not deemed it fit to compensate and commensurate through developmental projects in communities where these gas are flare, and we believe that this was an act of fraud perpetuated against my community by the FGN, as my community has not directly benefited from the penalty monies.
Nigeria presently stands in the not too highly esteemed position of being the country that flares the most gas in the world. This status has come to be because of the decades of relentless and unchecked gas flaring by unscrupulous oil and gas industry operating in Nigeria, and other factors, such as: the lax regulatory regime, many years of corrupt governments in Nigeria which indulge the oil companies in their flaring, lack of gas utilization infrastructures, lack of ready markets for the commodity amongst others.

Another factor seems to be that most Nigeria’s have been almost obvious of the value of natural gas itself and the attendant adverse effects of natural gas flaring. This is possibly one of the reasons why such abject wastefulness of highly valuable resources has been condoned for so long. To many people it would ap

pear that this gas is of no value, and that the oil and gas industry are justified in continuing to it off, but the truth is the contrary.

Nigeria, as a nation gets most of its revenue from the export of oil and indeed the oil and gas industry has enjoyed steady growth and development since oil was first discovered in Oloibiri in 1956. On the other hand, flagrant flaring of gas has been the order of the day. Oil companies in Nigeria led by Shell Petroleum Development Company (SPDC) continue this practice unabated and without conscience for it unwholesome negative effects. They are driven by their lust for profit, which they no doubt consider to be more important than the health and livelihood of those living in the oil producing areas.

There is a general agreement that gas flaring should stop, and in lieu of this, President Olusegun Obasanjo and the Major Multi-national oil producing companies in Nigeria, appear to have agreed to end gas flaring by the year 2008. to achieve this end, the government and the oil companies have initiated various projects, still it seems that much has not been achieved and these projects namely: Nigeria Liquefied Natural Gas (NLNG) venture and the West African Gas pipeline (WAGP) been criticized. However, it must be pointed out that these projects stand a chance at reducing gas flaring if properly utilized.

Also in an attempt to reduce gas flaring, Government has introduced several penalties over the years for the amount of flared by the oil companies. It was first fixed at 0.50 Naira per million cubic feet (MCF), but effective from January 1998, the present fee was fixed at 10 Naira per MCF, which at November 2003 exchange rate was equivalent to US $ 0.076 per MCF. This fine is however grossly insufficient compared with what obtains in developed countries where the fine is about $10, thereby discouraging oil companies over there from flaring of gas.

Although this anomaly called Gas flaring has been a scourge on the environment for close to five decades, definitions on the subject matter are not as extensive. Most authors are quick to criticize the trend, few proffer useful explanations and although a number of definitions can be found, some of them have faulted with technicality. However, a good definition of Gas flaring was given in a newspaper Article, which featured in the Guardian, as ”gas flaring is the burning off of gas found in association with oil in the course of oil production activities”. The Article went on to explain that ”flaring of association Gas from oil production activities is like setting a match to an enormous container of lighter fluid and they are so hot that nothing will grow near them. This gas that is flared is known as Associated Gas (AG), which is found mixed with oil. Oil companies do not like to find gas mixed together with their oil. They prefer to find Non Associated Gas (NAG), which is not mixed up with oil. Therefore, when oil companies encounter Associated Gas, they are quick to burn if off, so that they can get to their much prefer choice (oil). They do this despite other alternatives as re-injecting the gas back into the ground5, using it at the field to generate electricity or using it to produce Liquefied Petroleum Gas (LPO), which can be used for cooking. This is because flaring of Natural Gas comes at virtually no cost to them, while to take the alternative would involve sizable costs.

Another good definition obtained from Exxon Mobil’s website reads thus: “Flaring is the burning of natural gas that is produced along with oil during oil production”. In an article title: “Nigeria: Grantees Campaign against Gas Flaring” by Tracy Kirkland , the following was said “gas flaring occurs when the natural gas associated with oil deposits is burnt off before the crude oil is refined”. She further explained that, oil companies routinely flare gas for safety purposes, or where no infrastructure exits to bring the gas to market. In other Article title, “Gas Flares, Oil Companies and Politics in Nigeria” by Chijioke Evoh, which threw more light was shed on Gas Flaring.

He had this to say, “Associated gases are routinely flared in the course of processing oil. Flaring is a means of safely disposing of waste gases through the use of combustion. With an elevated flare the combustion is carried out through the top of a pipe or stack where the burner or igniter is located”.

In an article by Stan Shewuhuk, titled “Gas flaring a mounting environmental concern in Western Canada” another definition reads as follows: “flaring is the controlled burning of the waste natural gas associated with oil production”. Also another author, Ike Okonta, in his article “Dance those flares to silence illuminates gas flaring thus: when crude oil is struck and brought to the surface, it usually comes up with gas. This in oil industry parlance is known as associated gas. While the oil burn in the atmosphere”. Another Article defines Gas flaring a bit technically in these words. “Flaring is the burning of gas on drilling platforms when testing new wells, and on production platforms outside normal process operations (for example, process start-up and emergency shut-down).

In an Article title: “World Bank: over 150 Billion Cubic Meters of Gas Flared annually, Gas flaring was explained in the following words: “when crude oil is brought to the surface from several kilometers below, gas associated with oil extraction usually comes to the surface as well. If oil is produced in areas of the world, which lack gas infrastructure, or a nearby gas market, a significant portion of this associated gas may be released into the atmosphere, un-ignited (vented) or Ignited (flared).

From the above definition, it is necessary, that a distinction be drawn between flaring and venting. Flaring entails the burning of natural gas; while venting occurs when gas is simply released into the atmosphere without burning. An article defines flaring as the burning of gas that cannot be conserved, and, venting as the release of gas into the atmosphere. These two terms are not synonymous, although they are often used as though they are. Now that a better understanding of gas flaring has been achieved, the next thing to consider is the starting point of gas flaring in Nigeria.

GAS FLARING: HOW IT ALL BEGAN

Gas flaring dates back to 1956, about 50 year ago, when oil was first discovered by Shell D’ Arcy (now SPDC) at Oloibiri (in what is now Bayelsa State). This practice of flaring Associated Gas was fuelled by British double standards. The British while allowing incessant flaring of gas to take place in Nigeria subsequently took a very different approach towards flaring their own gas when North Sea production started in the 1970’s. During the period preceding Nigeria’s independence in 1960, the then secretary of state for the colonies, Lord Home was called upon to address the flaring as: those giving advice to the Nigerians (i.e. the British) could be reproached.

The official response given was devoid of any worry and it reads thus

“Until there is this worthwhile market and until there are facilities (e.g. pipelines and storage tanks) to use the gas, it is normal practice to burn off this by – product from the oil wells”

However, the British, back on their own turf, set their face firmly against flaring North Sea gas, with the result Gas flaring was reduced from over 90%, which was the flaring rate at the Crude Oil production) to round 2%. This was achieved over the span of 25 year. Meanwhile, as a result of British double standards and a number of other factors, Nigeria went on to become the ” WORLD’s BIGGEST GAS FLARE; flaring an estimate of 2.5 billion cubic feet of gas daily and losing a staggering 2.5 billion U.S. dollars yearly to Gas flaring. At the time the oil industry was born in the Niger Delta, the British knew of the practice of Gas flaring and were well aware of its unacceptability, yet they practically endorsed it with their lack of concern. They were interested in the enormous gain to be made

from exploiting Nigeria’s vast Crude Oil reserves, and thus were not too eager to spend money on what to them were ” uneconomic methods of using gas”.

The reverse was however the case, back at their own home and their attitude towards Gas flaring is aptly expressed in the following official note

Natural gas has commonly been treated as waste product by the oil companies. Last year for example over 500 million cubic feet a day was flared in Libyan (six) oil fields alone – well over 15% of total U.K. consumption. We have set our face firmly against such waste of a precious resource in the U.K. continental shelf however.

To support this position, a general prohibition to flare UK gas without Ministerial consent was included in Section 12 of the Energy Act 1976.

The Minister of Petroleum during the passage of the bill, made the following comments:

.we would not want extensive flaring at home in the same way as extensive flaring takes place for example in Middle Eastern countries. It is not always in the immediate economic interest of the company not to flare.The clause is mainly for conservation reason but partly…for environmental reasons as well. It is not true to say.that industry would never flare because it is in its own interests not to flare. It may not appear in the immediate economic interests of a company at that particular time without capital investment to use flared gas, but it may well be in the interest of the nation that the secretary of state may refuse an exemption to flare gas in a specific case.

This shows clearly that the British were prepared to refuse a permit to flare gas even though it was in the oil company’s interest, as they were determined not to become like other countries where excessive gas flaring was order of the day. They were bent on conserving their Natural gas and did in fact; recognize that Gas flaring was detrimental to the environment. Ironically, the same British, through Shell, are responsible for flaring large volumes of gas in Nigeria. This is also one of the reasons why Shell is being accused of operating double standards. From all that has been said so far, it is thus evident that Gas flaring in Nigeria was instigated by British double standards and they were indeed the Chief catalyst of what geared Nigeria into decades of wasteful flaring.

THE ADVRSE EFFECTS OF GAS FLARING: CASE STUDY (NIGER DELTA)

The Niger Delta is the area in which, majority of oil and gas related activities take place in Nigeria and as a result of this; it is also the area that has suffered most, the attendant environmental pollution and degradation that arises from these activities. Gas flaring is one of such sources of pollution, and is carried out by Oil companies in Nigeria, at the highest rate worldwide. The negative effects of Gas flaring are not limited to the environment only as it is also detrimental to human and animal life, as well as the economy. Studies have shown that Gas flares contain poisonous gases, which are fatal to crops, causes breathing problems in humans and cause acid rain, during the rainy seasons.

So therefore, for the purpose of discussion under this head, gas flaring and it effects will be shown from three viewpoints thus:

(A) Its Effect on the Environment
(B) Its Effect on Humans
(C) Its Effect on the Economy
The third head is included, because Gas Flaring also affects the economy, in terms of all the additional revenue that would have been realized if the Gas was properly utilized and not burned off.

(A) ENVIRONMENTAL EFFECTS

The effects of Gas flaring under this heading are multi faceted. Firstly, it is said to contribute to climate change. This effect, has received the most attention and corrective action worldwide. In January 2004, the UK Government’s chief scientist was quoted a saying the following: “Climate change is the most severe problem we are facing today, most serious even than the treat of terrorism. Burning (flaring) of Gas leads to the emission of carbon dioxide, the main greenhouse gas. Also, venting of gas, which occurs without burning, is said to release methane, which is considered to be more lethal than carbon dioxide. These greenhouse gases (carbon dioxide and methane) when emitted into the atmosphere tend to trap heat in the atmosphere, instead of allowing it radiate back into space. This has led to the warming up of the world and is projected to get much, more badly during the course of 21st century. Climate change is particularly grave for developing countries, and Africa as a whole is regarded as highly vulnerable with limited ability to adapt.

The Nigerian Government has even expressed the view that temperature in West Africa has increased over the past decade from 0.2 to 0.3 degree centigrade. Also, the continuous spate of gas flaring, which is being carried on in the Niger Delta, is said to contribute the further desertification of Northern Nigeria. This will arise because of a gradual decline in rainfall in that area.

Flaring contributes more emissions of green house gases (ghg’s) than all other sources in Sub-Saharan Africa combined. This has grave implications for the climate conditions in Nigeria. Other countries of the world also contribute their fair share of green house gases (ghg’s) and as a result of this fact, the Kyoto Protocol was created. This protocol was agreed to in 1997 under the UNFCC (United Framework Convention on Climate Change) and it imposes legally binding emission cuts on developed country parties. The Kyoto protocol is an agreement among industrialized Nations of the world to reduce emissions of various green house gases over a certain period of time, by harnessing the forces of the global market to protect the environment40. More than a hundred and seventy nations have ratified the treaty. Nigeria also agreed to the Kyoto protocol on 10th December 2004 and it came into force in February 2005.

Another environmental effect is that of acid rain. Residents in the Niger Delta have complained that acid rain corrodes their corrugated roofs, which are mostly made from metal. This acid rain poisons their lakes and streams, and also damages their vegetation. It is also said to accelerate the decay of building materials and paints. What’s more, after a rainfall in the Niger Delta, oily hue is often seen collected on rainwater. Several scientific studies have been carried out to substantiate the above claims. For example, in the mid nineties, an ERA team, led by Oronto Douglas, conducted a social impact survey of Iko; a community in the Delta, where Shell had been flaring associated gas for over two decades. It was discovered that Shell had located the flow station from which gas was flared near the homes of local people, and as a result, farmlands had been devastated, the nearby river had been polluted, and the roofs of the house, destroyed by acid rain. The inhabitants themselves were found to be suffering from aliments as a result of the poisoned air and the poisoned river they had been exposed to.

Another study that was intensive enough, a research from the Institute of Oceanography University of Calabar, showed that rain water samples at Ekpene Obo town of Esit Eket Local Government Area, situated close to gas flares in Akwa Ibom State, contained high levels of acidity resulting in corrugation of roofing sheets. The main source of the acids were said to emanate mainly from Mobil Producing Nigeria’s gas flaring operations at nearby onshore and offshore locations.

This observation that gas flaring in Nigeria causes acid rain is backed also by the U.S government’s Energy Information Administration, which states the following:

The continued process of gas flaring has not only meant a potential energy sources – and source of revenue has gone up in smoke, but it is also a major contributor to air pollution and acid rain.

Flaring is also to create soot, which is deposited on nearby land and buildings, visibility damaging vegetation next to the fla

re. The most noticeable, yet generally ignored effect of the flares is light pollution. This type of pollution turns night into day and is a predominant feature in many oil-producing regions, where gas flaring is carried out. Local villagers were made to believe that the towering flames resulting from gas and oil burning are inevitable consequences, or environmental risks of oil production. Gas flaring also causes noise pollution and the constant heat being emitted from the flare sites make hard the soil of farms adjacent to it. Also, because of the high intensity of these flare, wildlife and game are usually scared away. It was also reported that snails, which used to be picked by the inhabitants of neighbouring communities in their farms, became extinct. Instead what they found to pick on their farms were the empty shells.

B) HUMAN EFFECTS

Gas flaring also affects human beings in a variety of ways. Human effects used here, necessarily implies health effect. This is because they are exposed to the cocktail of toxic substances, which come with flaring. Although no comprehensive study is known to have been carried-out into the health impacts of gas flaring on communities in the Niger Delta, these communities believe that flaring is damaging their health, reducing crop production and damaging their homes. Despite the absence of such studies, Environmental Rights Action (ERA) still holds that Gas flaring is harmful to the people, cattle and the environment.

Gas flaring has been said to cause breathing problem amongst humans. There have also been allegations that it causes poor vision, cough and skin diseases. It is also said to cause respiratory problems in younger children, asthma attacks and cancer. These ailment are used by a mix of toxins (e.g. smoke also called: particulate matter), benzene, sulphur dioxide, toluene etc), which are emitted during flaring 63. To substantiate this claim, the United State Environmental Protection Agency (US EPA) has said the following:

Many scientific studies have linked breathing particular matter to a series of significant health problems, including aggravated asthma, increases in respiratory symptoms like coughing and difficult or painful breathing, chronic bronchitis, decreased ling function and premature death

Additionally, the U.S. EPA has also stated that exposure to benzene causes acute leukaemia and a variety of other blood related disorders in humans.

World Bank Information, on the adverse effects of particulate matter, suggests that gas flaring from Bayelsa, alone, would likely cause on a yearly basis, 49 premature deaths, 4,960 respiratory illness among children and 120 asthma attacks. Exposure to such ailment and toxins on such grand scale as is had in the Niger Delta is said to be a violation of their Human Rights.

C) ECONOMIC EFFECTS

Aside from effects on the environment/host communities, animals, plant life, and human health, Gas flaring also impact grossly on the economic of a Nation, in terms of the loss of funds and revenue which it could have realized if it had conserved Gas instead of flaring same. Nigeria provides an appalling example of such a loss. Oil companies in Nigeria flare an estimate 2.5 billion cubic feet of gas everyday and this action, amounts to the loss of revenue, estimated at 2.5 billion U.S. dollars yearly. Nigeria was also reported to have lost over 20 billion US dollars to gas flaring in a span of 20 years. If one was to calculate the volume of natural gas that has been flared in Nigeria, from the start of the oil industry in the 1950s, it will become glaring that Nigeria has lost much more than $20bn, stated in that report. The Nigeria Government is currently in a position where large amounts of its gas are still being flared away and it has remained unable to do much about it, notwithstanding its various gas utilization projects and the deadlines, which it had fixed for stopping of gas flaring.

Despite the fact that the Nation is richly blessed with vast oil and gas revenues, it is still a poor country, with about 66% of its population living under the poverty live (which is less than 1 US dollar a day – Transparency International 2005) what is more is the fact that the country and the local communities have not benefited from the vast profits realized from the proceeds of oil sales. According to ERA, this oil has been sold abroad for billions of dollars and has benefited only the Multi-national Oil Companies and the corrupt local elite.

GOVERNMENTAL REGULATIONS ON GAS FLARING
(NIGERIA’S GAS FLARING PHASE-OUT INITIATIVE)

Nigeria’s national response to safe-guard and enhance air quality standards and atmospheric protection, could be seen in the policy thrust, legal/legislative and institutional arrangements put in place over years. These are instituted by the government pursuant to Nigeria’s obligations under the international instruments and initiative to which she is a member. These are highlighted below

THE NIGERIA’S POLICY THRUST ON ATMOSPHERIC PROTECTION

The Nigeria’s policy thrust for the proper and efficient regulation of air standard and natural gas conservation is contained in the National policy on the environment (NPE) and the Nigeria National Agenda 21, published by the Federal Ministry of Environment (FMENV) the policy recognizes that atmosphere is very vital for the survival of man and other living animals, and that clean air is essential for health environments. Accordingly, government was committed, to inter alia:

v Designating and mapping National Air control Zones and declaring air quality objectives for each designated Air control zones;
v Promoting regional cooperation aimed at minimizing the atmospheric transportation of pollutants across international boundaries.
v Sustainable (Oil and Gas) exploitation strategy to be adopted nationally will seek to evolve a realistic national conservation policy that ensures optimum economic returns from oil and gas exploration and production, while ensuring adequate provisions for strategic reserves and taking into consideration the welfare of the local inhabitants of the oil and gas producing areas
v Monitor air emissions and gaseous wastes (CO, CO2, NO, N2s, CH4, SO2, etc.) discharged at production platforms, refineries, petrochemical and gas processing facilities, through continual air quality sampling, as well as through daily visual checks for leakages around tanks pumps pipelines and transfer points.
v Promote conservation and restoration of natural formation pressure through elimination of gas flaring and the production of greenhouse gases;
v Promote complete utilization of produced Associated Gas, reduced gas flaring and the production of greenhouse gasses.

This is considered as a very commendable staring point as indicating the government’s sense of duty, social responsibility and sensitiveness to people’s environment and health concerns. For the policy to benefit the people however, it has to be properly implemented.

THE POLICY FOR NATION GAS CONSERVATION AND DEVELOPMENT

The Nation Gas Policy (NGP) first reviewed in 1995 inter alia required subsequent production sharing contracts (PSC, S) signed with oil companies to include gas utilization clauses. Gas producers are to carry gas filed optimization studies on their respective concessions, while the Nation petroleum Investment Management Services (NAPIMS) would be responsible for overall optimization planning of gas field development. Incentives were also offered under the Associated Gas Utilization Fiscal incentives as an effort to put in place investment required to transport gas to interested third parties.

A further review to the said policy was made as the process of deregulating the oil and gas section of Nigeria’s economy was taken when the National Council on privatization (NCP) endorsed the National policy on oil and gas. The policy, which covers all aspects of the oil and gas industry, is geared towards securing for the country ma

ximum sustainable value from the strategic industry. The (NCP) said the policy also contracts and Memorandum of Understanding (MOU) governing the operations of the upstream sector.

Again, the research examined the operations of the refineries, pipelines, depots and retail outlets and recommended full deregulation of the downstream sector of the oil and gas industry. Issues of corporate social responsibility, health, safety and environmental responsibilities of all stakeholders, as well as the need to review, amend and harmonize the various laws and regulations governing the industry with a view to producing all-encompassing petroleum legislation for the nation were also well articulated in the document.