The annual Oil Technology Conference (OTC) in Houston, Texas regularly draws players in the industry from across the globe. Nigeria has never been found wanting. This year’s edition has afforded the country the opportunity to make its positions on the industry known.
Here are some things Nigeria canvassed at the conference:
1. Diversification of energy mix
Nigeria has urged African countries to diversify energy mix through the the African Continental Free Trade Agreement (AfCFTA), the world’s largest free trade area bringing together the 55 countries of the African Union (AU) and eight Regional Economic Communities (RECs). The call was made through the NNPC Limited. Nigeria argues that despite being home to some of the world’s largest oil and gas reserves, Africa has struggled to leverage these resources to drive sustainable development fully.
2. Energy transition
The country also emphasizes that Africa is at the forefront of the global energy transition. It said sustainable, low-carbon energy future presents challenges and opportunities for the continent. It identified financing, infrastructure, policy/regulatory frameworks, skills and capacity as the challenges the continent must overcome to be relevant in the transition.
3. Alternative funding mechanism to optimise oil and gas production
It was also the position of Nigeria that players must adopt a strategic approach to address the challenges to remain competitive, sustainable and relevant. When this is done, Africa can use its several opportunities for energy access, economic growth, environmental sustainability, and regional integration in the energy transition.
4. Growth in renewable energy
Nigeria also argued at the conference that there is a growing interest in renewable energy sources such as solar, wind, and hydropower. This has promoted focus on energy efficiency and conservation. Countries in Africa, Nigeria argued, must work together to prioritise investments in renewable energy infrastructure, research and development, and capacity building.
5. Energy need to soar
The country also said energy demand in Africa will increase by 30 per cent to 35 per cent to support the projected increase in population and industrialisation. This is seen as an opportunity for countries to form partnerships across the continent and build a sustainable future.
6. Reforms
The country also spoke of the need for reforms to be pursued rigorously to diversify the energy mix, enhance local content and capacity building, embrace technology and innovation, and strengthen partnerships and collaboration.
7. Collaboration
The country also called for partnerships as more African countries continue to make hydrocarbon discoveries. This collaboration should include knowledge sharing and helping each other in critical areas, such as technology, exploration and production, research and development, technical expertise and human capacity development to spread the wealth within the continent. Nigeria is working with countries, companies and other stakeholders to develop innovative solutions to meet the continent’s energy needs. One of these partnerships is the 5,600Km Nigeria Morocco Gas Pipeline to supply gas to Europe through Morocco and (13) ECOWAS member Countries.
Only through collaboration, the NNPC Limited said, can energy security and transition to cleaner energy, unlocking the potential of Africa’s abundant renewable energy resources and ensuring a sustainable and prosperous future for all be achieved.
8. Fine-tuning Oil Industry Policies to Meet Energy Transition Targets
Nigeria used the conference to announce that it was fine-tuning policies to meet energy transition needs. The country also pushed for establishment of African Forum of Regulators to enhance growth of the continent’s oil industry. The fine-tuning is being championed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
9. Zero emissions by 2060
Nigeria also told the conference it is working on attaining net zero emission by 2060. So, it has developed its energy transition plan and fine-tuning policies and regulations to be in alignment. A department is in place to deal with decarbonisation in a manner that will reduce carbon footprints credit. This is in line with Nigeria’s commitment at the United Nations Climate Change Conference (COP26) in Glasgow, Scotland to cut its carbon emission to net zero by 2060. Along this line, winners of gas flare sites will be announced soon.
10. Production-based lending engagement
The country is considering Production-based lending in recognition of the funding challenges facing some of the awardees of the 2020 marginal field bid round. This will help them source capital to start full field development towards hitting first oil.
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