Shell, the largest oil producer in the country, producing just under half of Nigeria's daily production of 2 million barrels, has budgeted US$8 billion to end its gas flaring.
By 2003 it plans for all its land flowlines to be buried. Currently the company has 106 flare stakes and flares around 28 million cu.m of gas a day.
Gas flaring is the burning off of excess gas produced during oil pumping operations.
The World Bank Group has led the Global Gas Flaring Initiative to support the petroleum industry in its efforts to reduce flaring. Flaring is a significant waste of resources and is considered a large environmental problem.
In its first year the initiative has conducted a number of activities including holding international consultations with key stakeholders, data quality improvement, and dissemination of international best regulatory practices.
These activities have led to country specific work in Chad, Nigeria, Ecuador, Mexico and Russia.
