Emmanuel Addeh
The Nigerian National Petroleum Company (NNPC) Limited has said Nigeria was facing significant challenges in ensuring energy security for the country as well as maximising the country’s revenues from its hydrocarbon resources.
The Chairman of the company’s board, Mrs. Margery Okadigbo, speaking at the ongoing Offshore Technology Conference (OTC) in Texas, United States, with the theme: “Energy transition and the future of Africa,” further posited that Nigeria requires significant investments in the oil and gas sector to accelerate the country’s energy transition plan.
The country is still battling with providing basic electricity for majority of its citizens occasioned in part by the non-availability of gas, while it continues to import all its petroleum products.
In addition, despite the skyrocketing international oil prices, Nigeria has not been able to optimise its revenues due to the inability to meet its Organisation of Petroleum Exporting Countries (OPEC) quota as well as huge petrol subsidy payment totalling N4 trillion this year.
None of the country’s refineries currently functions, prompting massive importation of the needed fuels with the associated foreign exchange leakages.
On the transition programme to cleaner fuels, during the recently-concluded COP26 summit in Glasgow, President Muhammadu Buhari pledged that Nigeria would cut its carbon emissions and reach net-zero by 2060, 10 years behind more developed nations.
Speaking at the conference, the recently appointed NNPC chairman explained that achieving and sustaining a carbon neutral economy requires inclusive policy actions that guarantee access to finance and low carbon technology.
Okadigbo added that the increasing social and environmental pressures on many energy companies had raised questions about the role of oil and gas in a changing energy economy, and the position of the companies in the societies in which they operate.
According to her, as world leaders and businesses join the global solidarity against climate change and reduction of carbon emissions, the NNPC Ltd has been taken some strides in lowering it’s carbon footprint, sustaining energy security and driving prosperity in Nigeria.
“This is the topic that we have taken up in different energy fora and is consistent to our multi-layer consideration on the future of oil and gas and our transition plans.
“As the world transits to substituting energy sources for cleaner fuels, Nigeria is still faced with numerous challenges in ensuring energy security, deepening domestic gas utilisation, and maximising revenues derivable from hydrocarbon resources.
“With the abundant oil and gas resources, Nigeria has chosen gas as the transition fuel to bridge the energy gap and create economic development.
“As world leaders and businesses join in the global solidarity against climate change and reduction of carbon emissions, NNPC Ltd is taking giant strides in lowering her carbon footprint, sustaining energy security and driving prosperity in Nigeria.
“We believe that achieving and sustaining a carbon neutral economy requires inclusive policy actions that guarantee access to finance and low carbon technology,” she said.
Okadigbo expressed optimism that the enactment of the Petroleum Industry Act (PIA) 2021 will guarantee a reasonable returns on investments, promote business and operational transparency and proffer better fiscal regimes than it was.
She pointed out that the Act would provide a legal framework and guarantee investors’ confidence.
“It is expected that much more significant changes in overall capital allocation would be required to accelerate energy transitions, especially getting some key capital-intensive clean energy technologies to reach maturity,” she argued.
She urged participants at the conference to explore the opportunities provided by the gathering to create and draw on the wealth of experiences at their disposal for realistic and responsible transition to cleaner energy and energy for the future.
The annual OTC event affords energy professionals the opportunity to meet to exchange ideas and opinions in advance of scientific and technical knowledge for offshore resources and environmental matters.
