The Federal Government has assured that the future of Nigeria’s upstream oil and gas is promising but requires the right legislative framework and a change in policy direction for maximum economic recovery and energy sustenance.
The Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, gave the assurance while delivering his goodwill message at the ongoing 45th Nigerian Annual International Conference And Exhibition, organised by the Society of Petroleum Engineers, Nigerian Council in Lagos on Monday.
According to him, the recently enacted Petroleum Industry Act, PIA, 2021 has generous fiscal provisions aimed towards attracting investment, not just for oil development but for harnessing of the rich gas potentials of Nigeria which is among the highest in the world.
“As we drive for investment in cleaner hydrocarbon development, without prejudice to maximum economic recovery strategies for development of oil resources, the commission empowered by the PIA has placed its focus on four cardinal areas for sustainable gas development and utilisation”, he said,
He listed the focal areas as gas reserves growth, optimised gas production, domestic gas utilisation, and gas flare elimination.
He said that energy transition discourse should revolve around the implementation of a fair, equitable and sustainable energy mix that entrenches the principles of inclusiveness and guarantees energy security.
Komolafe stated, “I believe that, while we deliberate on the global transition to renewable and sustainable energy, the discourse around the future of African upstream oil and gas should be open and unbiased and should consider the following:
“Energy transition discourse must be balanced by the energy needs for developing economies and the rights of fossil fuel rich countries to develop using their naturally endowed resources.
“Focus should be on safe disposal and mutilisation of CO2 in the harnessing of oil and gas resources and not the intentional de-funding of petroleum assets in the guise of energy transition. The concept of ‘Just Transition’ is necessary as developed economies have utilised fossil fuels in the development of their infrastructure within the last century and would therefore be just and fair for emerging economies like Africa to have similar opportunities in a ‘phase down’ approach.”