The TotalEnergies Nigeria says the deep water segment of oil and gas industry in Nigeria has been stuck for 10 years since the Egina Final Investment Decision (FID).
Mr Matthieu Bouyer, the Country Chairman/Managing Director of TotalEnergies Nigeria, made this known at the 23rd Nigeria Oil and Gas (NOG) conference, on Wednesday in Abuja.
The theme of the conference is: “Showcasing Opportunities, Driving Investment, Meeting Energy Demand’’.
The News Agency of Nigeria (NAN), reports that the Egina oilfield is one of the TotalEnergies most ambitious ultradeep offshore project, located at about 130km offshore Nigeria at water depth of more than 1,500m.
Bouyer, in a session entitled: “Defining The Outlook For Deep-Water Exploration and Production in Nigeria”, blamed the gap on high operating costs and lack of contractors and competition in Nigeria.
He listed increased levies, changes in fiscal terms, lack of contractors, competition in regional markets and comparatively high operating cost as some of the reasoned behind the development.
According to him, many contractors had left the country and that has increased the lack of competition in the sector.
To move the deep water sector forward and increase competition in the sector, Bouyer stressed the need for the Federal Government to understand why they left and effect measures to bring them back.
“Even with the fiscal incentives, if the costs are too high, investment will not be possible, therefore, there is need for competition to drive the costs down.
“As Capex are capped, arbitration are made. So it’s important to be competitive and agile to accommodate requirements,’’ he said.
He underscored the need for proactive measures to encourage investments in the deep water space. (NAN) (www.nannew.ng)
Malam Mele Kyari GCEO, NNPC Ltd. (Right) Flanked by Minister of State Petroleum Resources (Gas), with other dignitaries on Thursday at the commissioning of 12 CNG stations
By Emmanuella Anokam
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has inaugurated 12 Compressed Natural Gas (CNG) stations across Abuja and Lagos State, to enhance access to cheaper and cleaner fuel in the country.
The News Agency of Nigeria (NAN) reports that the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo inaugurated the 12 stations on Thursday simultaneously in Abuja and Lagos.
NAN reports that eight were sited in Abuja and four others in Abuja, respectively.
The Abuja stations are located at the Airport Road; Kubwa, Gaduwa, Olusegun Obasanjo Way, Zone 1, Dei-Dei Junction, Duste-Bwari Road and Gwagwalada.
The NNPC Ltd., under a strategic partnership with NIPCO Gas Ltd. executed the projects to offer CNG to a wide range of CNG vehicles including tricycles, cars, buses and heavy transport vehicles.
The Abuja and Lagos stations have a combined dispensing capacity of over six Million Standard Cubic Feet (MMSCF) of CNG daily, serving approximately 15,000 vehicles daily.
These CNG stations, according to NNPC, feature advanced reciprocating and hydraulic booster compressors, ensuring a dispensing pressure of 200 bar of CNG vehicles.
Ekpo said the gesture demonstrated the determination of the Federal Government to drive the CNG project to ensure gas prosperity.
According to Ekpo, the stations will not only provide economic benefits by creating jobs and stimulating local economies, rather contribute significantly to Nigeria’s national goals of reducing emissions and combating climate change.
“Today the stations are being commissioned simultaneously in 12 stations in the country, gas prosperity is in progress.
“I commend the NNPC Ltd. for living up to their mandate to ensure that CNG is available for Nigerians. It is irreversible.
“From the daily production in the country currently we are only using three per cent that goes a long way to tell you that irrespective of the demand, we will meet the target.
“And of course the NNPC Ltd. and other investors are not relenting in making sure that they go into new development of gas,’’ he said.
Malam Mele Kyari, Group Chief Executive Officer NNPC Ltd., said the Abuja stations would soon connect to the AKK Gas Pipeline, becoming a mother CNG station.
Kyari added that the stations’ power needed would be met by gas-driven generators, reducing carbon emissions.
He said the CNG would be supplied to stations in Abuja and Lagos via virtual transportation from mother stations in Ajaokuta, Kogi and Ibafo in Ogun state.
The CNG station on the Airport Road, Abuja includes a 5-bay CNG Vehicle Conversion Workshop, capable of converting five to six vehicles daily.
Under Presidential CNG Initiative, NNPCL and NIPCO Gas entered into strategic partnership for expansion of CNG stations across Nigeria, and 35 CNG stations are to be constructed.
Speaking with NAN, the Director, Presidential-CNG Initiative, Mr Toyin Subairu said with CNG usage, at N230 per litre, against N680 per litre of fuel a driver would save about N70,000 per week and N2.6 million a year.
Speaking on cost of conversion rate which is about N600,000, Subairu said the kits would be provided to commercial vehicles at 50 per cent surcharged, to enhance access to the CNG.
He said Nigerians are willing to convert their vehicles to CNG engine judging by the queues they witnessed currently, which encouraged the opening of more CNG stations across the country.
“Before the station attendants could convert four vehicles daily, now apparently they can do 13 vehicles daily.
“President Bola Tinubu will want a million kits to be given for free and conversion done for free in the country to assist Nigerians,’’ he said . (NAN)(www.nannews.ng)
Stakeholders in the oil and gas sector have called for the review of the zero per cent import duties on the importation of Liquefied Petroleum Gas (LPG) cylinders, to encourage local production.
The stakeholders, who spoke in seperate interviews with the News Agency of Nigeria (NAN) on the sidelines of the 2024 Nigeria Oil and Gas (NOG) conference in Abuja.
NAN reports that the conference is designed to encourage local content and grow the country’s Gross Domestic Product (GDP).
The stakeholders sought for 40 per cent upward review of import duties against the prevailing 20 per cent.
Mrs Nkechi Obi, Group Managing Director, Techno Oil Limited, urged the Federal Government to reverse the zero import duties placed on the importation of LPG cylinders and restore the initial 40 per cent, to discourage importation.
“We need policy reversal on that to encourage local producers.
“The unofficial explanation we are getting from some customs officers is that the Compressed Natural Gas (CNG), which the government wants to encourage its usage in Nigeria, has the same Harmonised System (HS) code with LPG.
“So, the import benefits placed on CNG equipment eventually affected LPG equipment; that is why they were tied together on the zero import duties.
“Harmonised System codes are commonly used throughout the import and export process for the classification of goods.
“For me, we don’t produce CNG cylinders in Nigeria because it involves advanced technology but we produce LPG cylinders here.
“For us to produce CNG cylinders, we have to change one or two machines, and we expect the government to encourage us to upscale our technology to 32, which we are planning to do.”
Obi suggested for exemption LPG HS code from that of the CNG, adding this would make the importers of LPG to pay higher duties.
“It will also enable the government to continue with its efforts to make CNG affordable in the country with zero import duties.
“The previous government protected those producing cylinders, so that import will not overshadow local production; they did that to encourage local manufacturing but when this government came into existence, policy changed.
“We only enjoyed that policy for six months before it was scrapped and replaced with the new zero import duties policy.
“Definitely; we have to produce CNG cylinders and the government needs to consider those that will go into that production. But if government policy is killing LPG cylinder production that we are doing, it will be very difficult to enter into CNG cylinder production.
“So, if there is anybody who can venture into CNG cylinder production, we the producers of LPG cylinders are here to do that and it is in our plan.
“But we are not encouraged to do it because of what happened to us in the LPG cylinder production because of the frustrating policy that’s encouraging importation,” Obi added.
An Economist, Dr Chijioke Ekechukwu, said that the government must be deliberate about building the economy.
“In doing so, we should not be approbating and reprobating at the same time.
“There are companies in Nigeria manufacturing LPG cylinders and have the capacity to manufacture the quantities required.
“Why do we create business and job opportunities for some foreign companies and countries and deny Nigerians these opportunities?
“Our already scarce Forex will be utilised to import these cylinders and put more pressure on the exchange rate and external reserve, while local factories will be pushed out of business, with attendant job losses,” Ekechukwu said.
He said that efforts should be geared towards encouraging local manufacturers of LPG cylinders, contribute to the growth of Nigeria’s. (NAN)(www.nannews.ng)
The Nigeria National Petroleum Company Limited (NNPCL), in collaboration with its partners has donated an ultramodern Information and Communication Technology (ICT) centre to the Sa’adu Zungur University, Bauchi.
The project was being implemented in collaboration with the NNPCL, Shell Petroleum Development Company (SPDC), TotalEnergies, Nigeria Agip Oil Company, and Offshore Lab. (TOL).
The ICT centre was sited at the university’s main campus at Gadau community in Itas-Gadau Local Government Area of Bauchi State.
Mr Bala Wunti, the Chief Upstream Investment Officer, NNPC Upstream Management Services (NUIMS), said the gesture was being executed under its Corporate Social Responsibility (CSR), designed to advance IT education and human capital development to support oil exploration in the North-East region.
Wunti, who spoke during the inauguration of the centre, said CSR has been a hallmark of the NNPC-SPDC Joint Venture (JV).
Represented by Sani Kabo, Head of Business Management Services, NUIMS, Wunti said the joint venture partnership had bern investing in impactful CSR initiatives for many years across the country.
“Today; the joint venture is in Bauchi to celebrate the completion of a state-of-the-art ICT Centre at the Sa’adu Zungur University Bauchi, formally (Bauchi State University, Gadau). This is indeed no mean feat and a milestone worthy of celebration.
“Education has always been a cornerstone of societal development, and in today’s world, Information and Communication Technology (ICT) is an essential pillar that supports this foundation,” he said.
Representative of Bauchi state governor, Mr Tajuddeen Baba-Ma’aji unveils ITC Centre donated at Sa’adu Zungur University Bauchi
Wunti said the NNPC-NUIMS has rallied its partners to support host communities towards human capital development and talents that would aspire to be the future of the industry.
The project, he said, is a glimpse of the positive impact of the oil and gas industry on the fortunes of Nigeria.
According to Wunti, with the upcoming Kolmani Integrated Development Project, Bauchi and Gombe are set to become the first two states in northern Nigeria, to join the oil-producing states in the country.
He lauded the management and staff of NUIMS and the NNPC-SPDC partners for their contributions towards the successful execution of the project.
While commending the Bauchi state government, community leaders, the management of the university and host communities for their support, Wunti called for effective utilisation of the centre to achieve its objectives.
Also speaking, Dr Osagie Okunbor, the Managing Director, SPDC and Country Chair of Shell Companies in Nigeria, described the centre as “a very important social investment project completed by SPDC JV in the North-East region.”
Okunbor, who was represented by Mr Igo Weli, General Manager, Corporate Relations Shell Companies in Nigeria, said they had implemented live strengthening interventions aimed at improving the social and economic wellbeing of the people in the region.
Modern equipment at the ICT Centre
The managing director listed some of the interventions to include unveiling of the Primary Healthcare Centre, Nangere in Yobe, and the completion of two live strengthening programmes to support displaced families in Gujba, Jere and Mafa in Borno and Yobe, respectively.
He said that all the projects had been completed and inaugurated early this year.
“The collaboration of joint venture partners and the Bauchi State University has resulted in the success of the project, which is a social investment project that demonstrates commitment toward improving access to quality education for every Nigerian,” he said.
According to Okunbor, the establishment of the centre has been driven by a vision to enhance educational infrastructure, support access to high demand IT skills and inspire a greater IT ecosystem in Bauchi state and the North-East region.
The two-floor ICT facility, he said, was designed to visually stimulate collaborative workspaces that foster an environment where the students engage in group work, brainstorming sessions, ideation meetings.
He added, “This promotes a collaborative work style essential for innovation teamwork.”
Other features of the facility included an independent water supply, 100 KVA power generator, a landscape, bicycle shed and cycling path.
“During its construction, we engaged the services of several local contractors, who played important roles in executing various scopes of work.
”They ranged from supplies, craftsmanship, medical services, and scaffolding. This is a testar quality of experience in our host communities,” he said.
Okunbor added that some 75 staff and students had been exposed to hands-on data science, embedded systems and hardware engineering, to grow in-house and ensure that the facility is put to good use as well as foster sustainable development.
He said, “It is our sincere hope that the facility will help to strengthen teaching and research at this university.”
According to him, SPDC and its partners are committed towards achieving sustainable development through viable education, shelter, Water Sanitation and Hygiene (WASH) intervention projects.
Gov. Bala Mohammed, who inaugurated the project, commended the gesture, adding that it would augment his administration’s IT education drive.
Mohammed said the state government had earmarked over N100 million in the 2024 budget to fast track implementation of ICT development projects.
The governor was represented by Tajuddeen Baba-Ma’aji, the Director-General, Bauchi State Bureau for ICT Development.
Also speaking, the Vice-Chancellor, Prof. Fatimah Tahir, commended the gesture, adding that it would improve the quality of learning, teaching and research in the institution. .
She promised to ensure the effective utilisation of the facility to advance IT education in the country. (NAN)(www.nannews.ng)
Nigeria has been granted the hosting right for the African Energy Bank (AEB), after beating Ghana, Benin Republic, Algeria, South Africa and Cote D’Ivoire in a keenly contested bidding.
Sen. Heineken Lokpobiri, the Minister of State, Petroleum Resources (Oil), told newsmen in Abuja on Thursday, that the award of hosting right for the bank highlighted Nigeria’s robust energy sector.
He said, “the award of the hosting right also highlights the country ‘s strategic vision for Africa’s energy future.”
Lokpobiri expressed gratitude to President Bola Tinubu for the support extended during the course of the bidding.
He also thanked the Council of Ministers of the African Petroleum Producers Organisation (APPO) for the confidence in Nigeria’s capability.
The minister highlighted the collaborative spirit of the APPO members and their shared vision for a united, energy-secured Africa.
He emphasised that “this decision reflects our collective ambition to create African solutions to Africa’s energy challenges.
“The African Energy Bank will be instrumental to providing the necessary financial backbone for energy projects that will drive growth and development across the continent.
“The decision is a significant step for the continent’s energy sector and underscores Nigeria’s pivotal role in Africa’s energy landscape.”
The minister assured Nigerians and Africans at large that the establishment of the African Energy Bank would mark a transformative era in meeting energy needs.
He said that the initiative aligned with the broader objectives of African Union’s Agenda 2063, aiming for a prosperous and self-sustaining Africa.
“We are committed to ensuring that the bank did not only move Nigeria forward, but becomes a beacon of progress for the entire continent.
“Our goal is to foster sustainable energy solutions that are both innovative and inclusive.”
The News Agency of Nigeria (NAN) reports that the bank is expected to facilitate access to funding for energy projects, thereby catalysing economic growth and enhancing energy security. (NAN)(www.nannews.ng)
Sen. Heineken Lokpobiri, Minister of State, Petroleum Resources (Oil), has called for more investments in the oil and gas industry to ramp up production and boost foreign exchange earnings.
Lokpobiri made the call on Tuesday at the Nigerian Oil and Gas (NOG) Energy Week holding in Abuja.
The country has over 37.5 billion barrels of proven crude oil reserves and 209 trillion cubic feet (tcf) and 600 tcf of proven and contingent gas reserves respectively.
According to the Independent Petroleum Producers Group (IPPG) Nigeria finds itself in a situation where its daily production has significantly dropped to about 1.3 million barrels of oil and 8.5 bcf of gas.
Lokpobiri, in an opening address blamed the development on lack of drilling investments in the sector, disclosed that efforts were ongoing to change the narrative by attracting more investments into the sector.
“We have been working hard to ramp up production. The overall objective is to increase production.
“It is when we ramp up production that we will be able to get the required forex inflow into the country, get money to fund budget, and satisfy energy demand.
“But you can only increase production by way of increasing investments,” Lokpobiri said.
Mr Ekperikpe Ekpo, Minister of State, Petroleum Resources (Gas), in an address, said the Ministry had been instrumental in implementing reforms that made Nigeria an attractive destination for investors.
He said the Petroleum Industry Act (PIA) 2021 and the recent Presidential Directive for Oil and Gas Companies on Tax Incentives, Exemption, Remission, among others by President Bola Tinubu, created a conducive environment for investment.
“The regulatory frameworks now in place incentivise investment, streamline bureaucratic processes, and provide clarity on fiscal terms,” he noted.
Earlier, the Chairman, IPPG, Mr Abdulrazaq Isa, had sought for measures by all relevant stakeholders to address the dwindling production level and under-investment in the oil and gas industry.
He said that in spite of the nation’s world hydrocarbon resource base, with over 37 billion barrels of proven crude oil reserves and 207 tcf and 600 tcf of proven and contingent gas reserves respectively, daily production had dwindled.
He expressed worry that daily production had significantly dropped and stood at about 1.3 million barrels of oil and 8.5 bcf of gas today.
“This is way below our capacity as a nation and by all globally acceptable standards, this reserves to production ratio is extremely low and a clear indicator that the industry is in a dire situation.”(NAN) (www.nannews.ng)
The Nigerian National Petroleum Company Limited (NNPC Ltd) on Tuesday declared a state of emergency on production in oil and gas industry.
The NNPCL has also called on all players in the industry to collaborate towards reducing the cost of oil production and boosting production to target levels.
Malam Mele Kyari, Group Chief Executive Officer, NNPCL, stated this in Abuja at the ongoing 23rd edition of the Nigeria Oil & Gas (NOG) Conference and Exhibition holding from June 30 to July 4.
“We have decided to stop the debate. We cannot afford to negotiate further, we have declared war on the challenges affecting our crude oil production.
“Our biggest interest is to produce more oil and gas in spite of oil theft and other challenges.
“We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners and we will work together to improve the situation,” he said.
Kyari said a detailed analysis of assets revealed that Nigeria could conveniently produce two million barrels of crude oil daily without deploying new rigs, but decried the inability of players to act in a timely manner as major impediment.
He said obstacles to effective and efficient production such as delays in procurement processes and old pipeline network were affecting the industry.
He said NNPCL would replace all the old crude oil pipelines built over four decades ago and introduce a rig sharing programme with its partners to ensure that production rigs stayed in the country.
This, he said, would be a medium to long-term measures aimed at boosting and sustaining production.
He expressed commitment to investing in critical midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipeline to boost domestic gas production and supply for power generation.
On Compressed Natural Gas (CNG), Kyari said the NNPCL had keyed into the Presidential CNG Initiative drive.
He said in conjunction with partners such as NIPCO Gas, NNPCL had built a number of CNG stations, 12 of which would be commissioned on Thursday in Lagos and Abuja.
The Secretary-General of the Gas Exporting Countries Forum (GECF), Mr Mohamed Hamel, in an address, also advocated for natural gas infrastructure and penetration for energy stability and security. (NAN)(www.nannews.ng)
The Chairman of Nestoil Limited, Dr Ernest Azudialu-Obiejesi, has called for the enactment of Local Content Laws that are enforceable to build and protect local capacity.
Azudialu-Obiejesi made the call on Monday at a panel session on “Exportation of Local Capacity: Maximising Regional Opportunities’’ at the ongoing Nigerian oil and Gas conference in Abuja.
The 2024 NOG conference, scheduled to hold from June 30 to July 4, is themed: “Showcasing Opportunities, Driving Investment, Meeting Energy Demand”.
According to Azudialu-Obiejesi, making law is one thing, enforcement is another thing.
“The Nigeria Content Development and Management Board (NCDMB) has done quite well but we still have setbacks due to how these laws are enforced,’’ he said.
Azudialu-Obiejesi said that effective implementation of laws was necessary to grow local capacity, while projects should be awarded to companies with proven capacity.
He called for a change in the implementation of the Nigerian content policy that allowed contracts to be awarded to companies with lowest bid in spite of apparent lack of capacity to deliver the jobs.
According to him, if a country has enough capacity to make it a net exporter to African countries, it is paramount to address the factors limiting growth in country.
“We can export the capacity in the oil and gas industry to other countries but exporting them means that we need to ensure that we will have those companies that are in Nigeria already developed.
“The countries are expected to entrench all those capacities in terms of human resources, experiences, capital and equipment for export,’’ he said.
Also speaking, Mr Olusegun Awolowo, Executive Secretary, National Action Committee (NAC) on African Continental Free Trade Area (AfCFTA), said it was given the mandate to ensure that Nigerians benefited from the implementation of AfCFTA.
Represented by Oluseun Olutayo, a Senior Trade Law and Policy Expert, NAC, AfCFTA, Awolowo said the committee would inaugurate the Guided Trade Initiative (GTI ) in July 16.
“The GTI helps to guide shipment through customs clearance, including reduced tariff treatment under the AfCFTA in the receiving AfCFTA countries.”
According to him, one of the core mandates of AfCFTA is harmonisation of trade in goods and services and Nigeria has high comparative advantage in this regards.
He said within the context of trade in services under the AFCFTA, four critical sectors have been identified and one of them was automobile, including the work of energy in the services.
The business sector allows anyone that has expertise in any of the services to actually maximise the advantage of AfCFTA,’’ he said. (NAN) (www.nannews.ng)
The Nigerian Content Development and Monitoring Board (NCDMB) has reaffirmed its commitment to achieve 70 per cent local content by the year 2027.
Mr Felix Ogbe, Executive Secretary, NCDMB said this on Monday at the Nigerian Content Seminar, a flagship programme of the 2024 Nigerian Oil and Gas Energy Conference (NOG), in Abuja.
The News Agency of Nigeria (NAN) reports that Malam Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company Limited (NNPC Ltd.) declared the conference and exhibition opened.
Represented by Mrs Oritsemeyiwa Eyesan, Executive Vice President, Upstream, NNPCL, Kyari toured the exhibition pavilion comprising oil and gas products and services.
The 2024 NOG conference, scheduled to hold from June 30 to July 4, is themed, “Showcasing Opportunities, Driving Investment, Meeting Energy Demand”.
“The Presidential Directive and our modalities are in accordance with the objectives of our 10-Year Strategic Roadmap, as they will significantly contribute to the deepening of Nigerian Content.
“This will ultimately help us achieve our overarching aim of increasing the level of Nigerian Content to 70 per cent by 2027,” he said.
Ogbe said the Presidential Directive sought to deepen local content in the Nigerian oil and gas industry, while enhancing competitiveness, mitigating risks of approving unqualified contractors, improving timeline approval and creating an enabling business environment.
He expressed commitment to implementing the Presidential Policy Directive on Local Content Compliance, assuring that when fully implemented; it would significantly impact Nigeria’s oil and gas industry, ensure cost competitiveness and attract further investments.
The NCDMB boss said that the NCDMB had designated five focal areas for implementing the Presidential Directive.
He listed the areas as Promoting the Utilisation/Growth of In-Country Capacities, Enhancing the Cost Competitiveness of Oil and Gas Projects and the Non-Inclusion of Intermediary Entities Lacking the Essential Capacity to perform from the Nigerian Content Plan (NCP).
He included the approval of Nigerian Content Plan (NCP), consisting of contractors to meet legal definition of Nigerian Companies and demonstrate capacity to execute projects within Nigeria, and Entities acting solely as intermediaries.
Ogbe listed some of the accomplishments that the Board had made under his leadership to include, the Amal Technologies Gas Leak Detection Device and Printed Circuit Board manufacturing facility in December 2023 in Idu, Abuja.
He said the facility represented a new era in the Nigerian oil and gas industry, and a significant advancement in research and technology innovation.
“It is a testament to Nigeria’s ability to create indigenous innovation that will be implemented to address the obstacles that the Nigerian oil and gas industry is currently encountering,” he said.
Ogbe said, in June 2024, the NEDOGAS Kwale Gas Gathering and Injection Facility, one of its partnership initiatives with significant advancement in attaining the Federal Government’s flare-out policy was commissioned in Kwale, Delta state.
“The Final Investment Decision (FID) made on the Ubeta Field Development Project by TotalEnergies Exploration and Production Nigeria Limited and its JV Partner, Nigerian National Petroleum Company Limited (NNPC Ltd.) is another significant accomplishment.
“This project will add over 350 million standard cubic feet of gas per day to our country’s gas production capacity.
“The Board is determined to establish an enabling business environment that will attract more investors to the country’s oil and gas sector,” he said.
NAN reports that the flagship programme featured panel sessions on “Nigerian Content as a Business Enabler “, “Exploring Nigerian Content Solutions to Meet Energy Demands’’ and Exportation of Local Capacity: Maximising Regional Opportunities’’.(NAN) (www.nannews.ng)
The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has unveiled the African Petroleum Regulators’ Forum (AFRIPERF), to drive continental aspirations in the development and utilisation of hydrocarbon resources.
The commission inaugurated the AFRIPERF at its maiden roundtable on the sidelines of the Nigeria Oil and Gas (NOG) Energy Week 2024 holding from June 30 to July 4, 2024 in Abuja.
The theme of the event is: “Fostering Collaboration and Sustainability in Africa’s Petroleum industry.”
The News Agency of Nigeria (NAN) reports that the primary goal of the AFRIPERF is to promote collaboration, knowledge sharing, and the adoption of best practices across our continent for a secured energy future.
Mr Gbenga Komolafe, Chief Executive of the NUPRC, described the forum as a significant milestone in the collective journey toward fostering a more collaborative, innovative, and sustainable petroleum industry in Africa.
Komolafe said the AFRIPERF signified African’s commitment to overcome common challenges to achieve national aspirations in the development and utilisation of hydrocarbon resources.
“Currently, Africa holds substantial oil and gas reserves. The continent’s proven oil reserves are estimated to be 125 billion barrels, representing approximately seven to nine per cent of the world’s total oil reserves, while the proven natural gas reserves are estimated at around 620 trillion cubic feet (Tcf).
“Aside from hydrocarbon resources, Africa is blessed with potential for green and blue hydrogen, solar, wind, biomass and critical minerals for development of clean energy technologies and growing population pre-dominated by young people,” he said.
He said with a population of 1.49 billion compared to a combined population of Europe and U.S. estimated at 1.1 billion, Africa had the second largest population among the continents of the world.
This population, he said, is expected to continue growing rapidly in the coming decades.
“Unfortunately, Africa’s Gross Domestic Product (GDP) which currently stands at three trillion dollars is very low compared to that of Europe at $22 trillion and U.S. at $26.9 trillion according to the World Bank, International Monetary Fund,” he added.
He explained that these statistics underscored Africa’s significant role in the global youth demographic and highlighted the need for collaboration for targeted policies and investments that would support this growing segment of the population.
He noted that the need for a unified platform that would bring together the regulators of the African Petroleum Industry was conceived during the African Energy Leadership Forum and Awards at the Offshore Technology Conference in Houston, USA, In May 2023.
“As we are all aware, we are faced with rapidly evolving global energy landscape, it is,, therefore, imperative that we leverage our collective strengths to secure the appropriate energy source for the development of our nations and benefit of our people.
“The recent surge in hydrocarbon discoveries across Africa, coupled with the pressing need for a sustainable energy transition, demands a concerted effort from all of us.
“AFRIPERF will enable us to address these challenges head-on, ensuring that our regulatory frameworks are robust, our policies forward-thinking, and our actions aligned with global best practices,” he said.
Speaking on the objectives of AFRIPERF, he said it would promote investment and cooperation among regulators of African petroleum producing countries, facilitate knowledge sharing, technology transfer, and the dissemination of best practices.
Mr Joseph Ogunshola, Deputy Director, Reservoir Management and Unitisation/Energy Transition and Carbon Monetisation, NUPRC said the forum required concerted efforts to drive initiatives and objectives proposed for AFRIPERF.
Ogunshola, in a presentation entitled: “Fostering Collaborative and Sustainability of Africa’s Petroleum Industry: Establishment of the Africa Petroleum Regulatory Forum,” said 60 per cent of Africa’s export earnings were from hydrocarbons.
He underscored the need for access to clean cooking fuel, Liquefied Petroleum Gas (LPG) utilisation and balanced relationship between energy situation and economic growth and fair balance equitable energy transition.
Mr Ergbert Faibille, the Chief Executive Officer, Petroleum Commission, Ghana, lauded the NUPRC for conceiving and putting together the forum, adding that Ghana would be supportive to ensure its success.
“The forum will enable the regulators in the continent to think through what our prospects are, what our challenges are and ensure that Africa is not left behind in the global energy industry,” he said.
Fabille, while expressing enthusiasm on the resolution of producing the Abuja Declaration on the Forum for future references called for an investment in a firm and harmonised regulatory environment across African continent
Also speaking, Kanni Touray, the Deputy Director-General, Petroleum Commission, the Gambia, expressed delight to be part of the forum.
Touray said that the forum would enable the Gambia to learn from Nigeria’s exploration and petroleum value chain. (NAN)(www.nannews.ng)
Edited by Chinyere Joel-Nwokeoma
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