Associated Gas Re-injection Act

Sec. 1 requires “every company producing oil and gas in Nigeria” to submit to the Minister of Petroleum Resources a plan to utilize all associated gas, or projects to re-inject all associated gas not utilized in an industrial project.

Sec. 2 requires within 6 months (initially, was by 1 October 1980) submissions describing the implemented re-injection programs and/or plans for AG utilization.

Sec. 3(1) prohibits the flaring of AG “without the permission in writing of the Minister.” Sec. 3(2) authorizes the Minister to issue a flaring certification “utilization or re-injection of the produced gas is not appropriate or feasible in a particular field or fields”. The certificate should specify terms and conditions, and may assess a fee for every 1,000 scf (28.317 scm) flared. Payment should be handled as royalties are.

Sec. 4 assesses penalties, including forfeiture of a concession, and withholding of “entitlements” owed to the person to defray the costs of re-injection or repair to reduce emissions.

Sec. 5 enables the Minister to make regulations.

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