Nigeria has taken an essential step in direction of enhancing transparency in its oil and fuel sector by publishing company-level greenhouse fuel emissions data for the first time.
The disclosure, launched by the Nigeria Extractive Industries Transparency Initiative (NEITI) in its 2023 oil and gas audit report, is predicted to assist residents, regulators and buyers perceive how a lot air pollution corporations emit and whether or not the nation is making progress in direction of its local weather commitments.
However, an unbiased evaluate of the data has recognized a number of points which will undermine confidence within the disclosures if left unresolved.
Using the Emissions Monitoring and Accountability Tool (EMAT), an interactive platform that organises and compares emissions data revealed by NEITI, this evaluation discovered repeated emissions figures throughout totally different corporations, missing methane data, and inconsistencies within the variety of corporations reported as having submitted emissions data.
The findings don’t counsel wrongdoing by any firm. Rather, they spotlight areas the place Nigeria’s emissions reporting framework may very well be strengthened to enhance transparency, data high quality and public confidence.
Repeated emissions figures
One of essentially the most hanging observations is that Chevron Nigeria Limited and the Shell Petroleum Development Company (SPDC) reported precisely the identical methane emissions figures for 2022.
Both corporations reported 173,578,759.2 kilograms of carbon dioxide equal (CO₂e) and 6,943,150.368 kilograms of methane.
The values are similar throughout just about all reported fields apart from halons.
The figures seem in Appendix 12 of NEITI’s 2022 and 2023 Oil and Gas Industry Reports, which comprise Nigeria’s first publicly accessible company-level greenhouse fuel disclosures.
This grew to become instantly seen as a result of EMAT permits customers to check firm data facet by facet, similar figures that could be troublesome to note in static tables.
The Chevron-SPDC entries are usually not remoted circumstances.
Another instance is Aradel Holdings Plc, which reported precisely the identical methane values in each 2022 and 2023: 133,522,033 kilograms CO₂e and 5,340,877 kilograms of methane.
Similarly, Network E&P reported 112 kilograms CO2e and three.64 kilograms methane in each reporting years.
Repeated figures don’t mechanically imply the data are inaccurate. Companies with related operations, shared manufacturing services, or widespread reporting boundaries may legitimately report related emissions. However, precisely similar values reported to a number of decimal locations warrant additional verification in opposition to the unique submissions.
Another case issues Pillar Oil, the place the identical numerical worth seems repeatedly throughout totally different greenhouse gases.
For instance, in 2022, the worth 1,610,170.7872 seems throughout a number of gases, together with carbon monoxide, nitrous oxide, nitric oxide and sulphur dioxide. The similar sample seems in 2023 with 2,389,859.8050.
The revealed report doesn’t clarify why these totally different gases share similar values.
Missing methane data
The evaluation additionally discovered that methane reporting is way from full.
Of the 30 company-year data reviewed in Appendix 12, solely 12 comprise data throughout all three methane reporting fields.
The remaining 18 data comprise missing data, and among the omissions are troublesome to interpret.
For occasion, NAE reported 963,970 kilograms of methane in 2022 however recorded zero for the corresponding carbon dioxide equal.
In 2023, the corporate once more reported methane emissions however left the carbon dioxide equal discipline clean.
Similarly, Chevron and Heirs Energies reported methane solely as carbon dioxide equal in 2023 with out offering the underlying methane mass.
Heirs Energies reported 217.4 million kilograms CO₂e, one of many highest methane-related figures within the dataset, but the absence of the methane mass makes it unimaginable to independently confirm the conversion.
In one other case, Platform Petroleum seems on the reporting sheet, but all of its methane fields are clean for each years.
The report gives no clarification of whether or not clean cells point out that no emissions occurred, that no data have been submitted, or that emissions weren’t calculated.
This distinction issues as a result of a clean discipline isn’t the identical as reporting zero emissions.
Inconsistencies in firm reporting
The evaluation additionally raises questions about what number of corporations truly submitted emissions data.
NEITI states that 15 out of 62 audited corporations submitted greenhouse fuel data, whereas 47 corporations didn’t.
However, the appendix presents 15 corporations on the reporting sheets, and 58 entries on the non-reporting sheet.
Taken collectively, the lists comprise 73 entries, quite than the 62 corporations referenced by NEITI.
Further evaluate exhibits that Platform Petroleum seems on each the reporting and non-reporting lists.
In addition, some entries discuss with three way partnership pursuits or particular person oil fields quite than clearly identifiable authorized entities, making it troublesome to find out precisely which corporations reported emissions.
For instance, the non-reporting listing contains the NEPL (55 per cent) and Shoreline (45 per cent) pursuits in OML 30, whereas the reporting sheets individually listing Esso’s Erha and Usan fields.
A reconciled listing that clearly distinguishes authorized entities, operators, and manufacturing belongings would considerably enhance transparency.
Why this issues
Nigeria has dedicated to ending routine fuel flaring by 2030 and lowering fugitive methane emissions from the oil and fuel sector by 60 per cent by 2031.
Measuring progress in direction of these objectives depends upon dependable baseline data.
Because Appendix 12 represents Nigeria’s first public company-level greenhouse fuel disclosure, it successfully serves because the benchmark in opposition to which future emissions reductions might be measured. If the baseline incorporates gaps or inconsistencies, assessing future progress turns into harder.
Several sensible enhancements may strengthen future disclosures, together with publishing the unique reporting templates submitted by corporations, clearly distinguishing between reported zeros and missing data, figuring out the authorized entity liable for every reported asset, offering explanatory notes for uncommon entries and sustaining a public log of corrections the place errors are recognized.
NEITI’s response
NEITI was requested, by means of a Freedom of Information request, to reply to the problems recognized within the evaluation, together with questions in regards to the methodology utilized by corporations, duplicate figures, missing or zero values, emissions depth, the variety of reporting corporations, verification procedures, and the accessibility of the revealed data.
NEITI defined that beneath EITI Requirement 3.4, greenhouse fuel reporting is inspired quite than obligatory.
According to the company, its reporting template requested corporations to offer greenhouse fuel emissions data and data on the methodology used, together with emission elements, direct floor primarily based sensors, satellite tv for pc estimates, and different recognised approaches.
However, the template didn’t require corporations to offer the Global Warming Potential values used, the precise IPCC or different scientific evaluation from which these values have been derived, or the time horizon used to transform emissions into CO₂ equivalents.
The company stated it didn’t convert, normalise, recalculate or modify the data submitted by corporations. The revealed figures, due to this fact, mirror the data supplied by the businesses.
NEITI additionally stated there may be at the moment no established nationwide verification framework for these disclosures and that its function is targeted on transparency, assortment, and publication quite than on unbiased technical validation or methodological harmonisation.
Regarding repeated entries and similar figures recognized within the evaluation, NEITI acknowledged the observations and stated it might conduct an inside evaluate.
The company stated needed changes had been mirrored within the revealed data. It added that the unique firm templates and inside validation data weren’t meant for public disclosure.
NEITI stated that any corrections or clarifications ensuing from its inside evaluate can be mirrored within the revealed dataset. It acknowledged the observations and stated it might take the suggestions under consideration because it updates the revealed data.
What occurs subsequent?
NEITI’s first company-level greenhouse fuel disclosure represents an essential place to begin for public scrutiny of emissions in Nigeria’s oil and fuel sector.
The data present journalists, researchers, civil society organisations and policymakers with data that was beforehand troublesome to entry on the firm degree.
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At the identical time, the evaluation exhibits that the worth of the disclosure will depend upon enhancements in the best way emissions data is collected, standardised, verified and revealed.
The speedy precedence must be to ascertain a clearer and extra constant reporting framework that allows customers to differentiate between zero emissions, missing data and non-applicable data; perceive the methodology behind reported figures; establish the businesses and belongings coated; and reproduce emissions-intensity calculations.
As Nigeria works in direction of its methane-reduction commitments, the standard of the underlying data might be as essential because the targets themselves.
The first disclosure has opened the window of transparency. The subsequent problem is making certain that the data accessible by means of that window is full, constant and dependable to help significant public accountability.
This report was supported by the Centre for Journalism Innovation and Development(CJID) as a part of the Deepening Methane Emissions Transparency Initiative-Stream II
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