TotalEnergies on Wednesday said the commencement of production from its Ikike field would help to bridge Nigeria’s oil production gap which had declined in recent times.
Mr Mike Sangster, the Managing Director, TotalEnergies E&P Nigeria, made this known at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) in Lagos.
The News Agency of Nigeria reports that the Ikike project is a Joint Venture between TotalEnergies (40 per cent) and the Nigerian National Petroleum Company Ltd. (60 per cent).
Located 20 kilometers off the coast, at a depth of about 20 meters, the Ikike platform is tied back to the existing Amenam offshore facilities through a 14km multiphase pipeline.
Represented by Mr Victor Bandele, the Deputy Managing Director, Deepwater, TotalEnergies E&P Nigeria, Sangster said the field would add 50,000 barrels per day to Nigeria’s oil production.
He said: “That kind of the project first is low capex, which is what Nigeria needs now.
It is high profit, which is what Nigeria needs now and it’s helping to bridge the gap that we have caused by ourselves.
“Today, our Organisation of the Petroleum Exporting Countries (OPEC) quota is 1.8 million barrels, we are producing less than 1.3 million.
“So, what for me is success is that we don’t waste the capacity that we should have as a country.
“When we are supposed to be producing 1.8 million, we should do more than that and be able to take benefits of what we have today.
” Sangster called for more collaboration among operators in the sector to optimise cost and improve efficiency in their operations.
He said there was a need for the industry stakeholders to work with the government in addressing the current security challenges such as pipeline vandalism and oil theft that was affecting the sector.
Seplat Energy Plc on Wednesday said there were huge business opportunities for investors in Nigeria’s transition to cleaner sources of energy.
Mr Roger Brown, the Chief Executive Officer Seplat Energy Plc, made this known while delivering a keynote address at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) in Lagos.
The News Agency of Nigeria reports that the topic of the panel session was: “Operationalising a Clean Energy Transition for Sustainable Development in Africa.
” Represented by Mr Effiong Okon, New Energies Director, Seplat Energy Plc, Brown said lack of access to energy by Nigeria and other African countries remain a huge opportunity for investors.
He said Nigeria in particular had a strong potential for growth and that energy transition was an opportunity to create a sustainable future for the country.
According to him, Nigeria’s population is projected to hit 329 million by 2040 with an electricity demand of 240TWh. Brown said there was the need for investment in gas and renewables such as hydro, solar and wind which would play key roles in Nigeria’s industrialisation in the near future.
He said: “The greatest business opportunity ahead of us is to supply the right mix of energy to support Nigeria’s growth.
“In doing so, we must make a positive social impact and contribute to Nigeria’s achievement of the United Nations’ Sustainable Development Goals.
” Brown said Seplat was in support of the Federal Government’s decision to make gas Nigeria’s energy transition fuel and would continue to make investments toward the development and utilisation of the country’s abundant gas resources.
While listing the company’s achievement, he said Seplat had since 2011 invested a capex of $1.7 billion in the sector and had paid $445 million dividends since its Initial Public Offerring (IPO).
He said the $700 million ANOH Gas Processing Company being constructed by Seplat and the Nigerian National Petroleum Company Ltd. at Asaa, in Imo was nearing completion.
Brown said the project, when completed would provide gas to boost the much-needed supply of power to millions of homes and businesses across Nigeria to facilitate better standard of living and drive economic growth.
Earlier, Prof. Olalekan Olafuyi, Chairman, SPE Nigeria Council, urged African countries to priotise reduction of energy poverty in the continent while also working on decarbonising the energy system.
Olafuyi said that the continent’s contribution to global carbon emission was relatively low.
He added that there was the need to utilise its huge hydrocarbon resources for industrialisation and human capital development.
The Federal Government on Tuesday reiterated its commitment to achieving self-sufficiency and net exporter of energy resources by 2026.Mr Bala Wunti, Group General Manager, National Petroleum Investment Services (NAPIMS), made this known while speaking at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) on Tuesday in Lagos.
The News Agency of Nigeria reports that he spoke during a panel session on “Sustainable Energy Transition Strategy: The Role of Legislative Frameworks and Investment Programmes.
”Wunti said though the government had pledged to achieve net zero carbon emission by 2060, its priority remains reducing energy poverty in the country with its abundant hydrocarbon resources.
To this end, he said the government’s target was to attain zero dependence on imported energy, both primary and secondary, as well as becoming a net exporter of secondary energy resources by 2026.Wunti said the plan was to provide access to energy to 100 per cent of the population through the gas to power initiative which would spur industrialisation and economic growth.
He, however maintained that this could only be achieved through effective legislative frameworks and investment programmes needed to maximise the opportunities in the oil and gas sector.
Wunti said there was need to create a platform where market investment and financing come together with regard to delivery of energy in a more sustainable manner.
He noted that unfortunately, the industry had witnessed decline in investments in recent years which had plunged the world into the global energy crisis.
According to him, available statistics from the Organisation of the Petroleum Exporting Countries (OPEC) shows that the world requires $11.8 trillion to meet its energy needs.
Wunti said the current global energy crisis was due to energy imbalance with supply falling short of demand which had driven the price of energy resources upward.
Also, Mr Austin Avuru, Chairman, AA Holdings Ltd., said Africa must design home grown solutions to the divestment of assets by International Oil Companies across the continent.
Avuru said the move was largely responsible for Nigeria being unable to meet its OPEC quota, adding that there was need to grow indigenous companies to fill the void created by the divestment of the IOCs.He said the way forward was for the companies to get access to funding from within the continent for oil and gas exploration.
Avuru also called for deployment of technologies, production of more natural gas and encouragement of tree planting to achieve decarbonisation while maximising the continent’s abundant oil and gas resources.
Earlier in his remarks, Prof. Olalekan Olafuyi, Chairman, SPE Nigeria Council, decried the lack of access to energy by many Africans.
Olafuyi said building a sustainable energy sector was fundamental for the African continent to power sustainable industrialisation and trade.
He said this underpins the African Continental Free Trade Area (AfCFTA) plan and thus highlights further the need for regional integration to solve Africa’s energy and climate challenges.
“Ramping up sustainable energy generation capacity by 2030 according to the African Development Bank’s (AfDB) New Deal on Energy for Africa, requires a minimum of $44 billion of annual financing.
“Maintaining and extending the pace of progress will thus require strong political commitment and sound governance, long-term energy planning, adequate political and fiscal incentives as well as public and private financing,” he said.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has placed focus on four cardinal areas for sustainable gas development and utilisation in the country.
The commission said that the four cardinal areas were gas reserves growth, optimised gas production, domestic gas utilisation and gas flare elimination.
Mr Gbenga Komolafe, Commission’s Chief Executive, NUPRC, made this known at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) on Monday in Lagos.
The News Agency of Nigeria that the conference had as its theme: “Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa.
” Komolafe, represented by Mr Abel Nsa, Head, National Oil and Gas Excellence Centre (NOGEC), urged other African countries to adopt suitable anchor points and roadmaps similar to what had been outlined by the commission.
According to him, this will enable them to achieve the right energy mix while decarbonising their oil and gas development.
He noted that Nigeria had huge abundant gas resources which had been adopted by the country as its energy transition fuel.
Komolafe said the passage of the Petroleum Industry Act (PIA) 2021 was aimed at eliminating bottlenecks in the oil and gas sector to attract more investments.
He said: “We are positioning gas as our transition fuel while adopting phased down approach in our energy transition quest geared toward paying greater attention to the development of untapped gas resources.
“This energy source with low carbon footprint would serve as the transition fuel in meeting our energy security as a nation.
“Fortunately, several African countries including Nigeria, Algeria, Mozambique, Egypt and Libya, among others are blessed with huge gas reserves.
“With a total of over 620 trillion cubic feet of natural gas reserves and 125.3 billion barrels of crude oil, the future of upstream oil and gas in Africa is promising.
” Komolafe, however, noted that it required the right legislative framework and a change in policy direction for maximum economic recovery and energy sustenance.
He added that the PIA had generous fiscal provisions aimed toward attracting investment not just for oil development but for harnessing of the rich gas potential of the nation which was among the highest in the world.
Also, Prof. Olalekan Olafuyi, the Chairman, SPE Nigeria Council, said the world was facing the challenges of balancing the urgency of transition to cleaner energy with the obvious energy deficit and economic challenges experienced in recent times.
Olafuyi said: “It is expected that the adaptive strategies for energy transition should be adopted in Africa.
“The status quo in the African energy supply is very obvious.
Africa and Nigeria in particular, are still struggling with endemic energy poverty as compared to the developed regions of the world.
” He said this was further worsened by the divestment by major international operators and funding challenges for oil and gas businesses.
“This leaves the indigenous stakeholder in a situation of choosing to continue with the oil and gas business or channeling the attention to renewable energy sources.
“This question is in the mindset of stakeholders in the energy business and policy space are the main reason we are here at this conference,” Olafuyi said.
Chief Timipre Sylva, Minister of State for Petroleum Resources, has called for the deployment of available technologies to make fossil fuel cleaner in the face of global energy transition.
Sylva made the call while speaking at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) on Monday in Lagos.
The News Agency of Nigeria reports that the conference had as its theme: “Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa.
” He said the theme of the conference was very apt, coming at a time when the world was witnessing a turnaround in the global energy landscape and clamouring for transition to greener energy sources to reduce carbon emission.
The minister, however, maintained that energy transition was better viewed as providing clean energy, and not as abandoning some energy sources.
According to him, the ongoing global energy is a huge challenge to the reliability and sustainability of renewable energy supplies as alternatives to fossil fuels.
“Anticipated economic growth and rising global population, especially in Asia and Africa, will significantly push energy demand upward to a level that renewable energy sources only cannot meet by 2050. “All these imply that the global energy mix will remain with us, amidst greater dominance by hydrocarbon energy sources, at least in the foreseeable future.
“It also indicates that energy transition will remain a gradual process, as against a rapid and radical shift as some have presented it.
“It is, therefore, necessary that more effort should be put on the use of available technologies like the Carbon Capture, Utilisation and Storage (CCUS), to make fossil fuels cleaner.
“This will encourage a win-win situation in terms of CO2 emission reduction and meeting global energy demand,” he said.
According to him, many countries have already come to the realisation that the adoption and deployment of the CCUS technologies in large scale will play a critical role in supporting energy transitions globally.
He said that investment into the CCUS technologies was a very appropriate step at this stage of addressing climate change concerns.
The minister who noted that Africa was bedeviled with energy poverty, advised African countries to adopt adaptive strategies taking into account the different socio-economic, political and developmental peculiarities of individual nations.
He said: “Africa’s energy poverty would have to be addressed by responsibly developing and utilising Africa’s abundant natural resource – fossil fuels, from where the renewable energy would be funded amidst a gradual energy transition.
“Nigeria, as the oil and gas industry leader in Africa, is committed to pursuing the energy transition to promote economic growth.
” Sylva said the country was gradually investing in renewable energies, primarily solar, to reduce carbon emissions, whilst continuing to exploit hydrocarbon resources, especially natural gas – recognised as the energy transition fuel for Nigeria.
On his part, Mr Kamel Ben-Naceur, 2022 SPE International President, blamed the current global energy crisis on the sharp decline in investment in the upstream petroleum sector in pursuit of energy transition.
Ben-Naceur said with the return to normalcy after the COVID-19 pandemic and the ongoing tension in Eastern Europe had driven the price of petroleum products very high leading to inflation in many countries.
He said projections had shown that oil and gas would continue to be a significant part of the energy mix in the foreseeable future hence there was need to increase investment in the industry.
The Society of Petroleum Engineers (SPE), Nigeria Council, has called for enforcement of stiff penalty for gas flaring in Nigeria.
Prof. Olalekan Olafuyi, Chairman, SPE, Nigeria Council, made this known at a news briefing ahead of the 2022 Nigeria Annual International Conference and Exhibition (NAICE) on Wednesday in Lagos.
The News Agency of Nigeria reports that the NAICE is an annual event of the SPE and this year’s edition is scheduled to hold from Aug. 1, to Aug. 3, at Eko Hotel, Lagos.
Olafuyi said the theme of the conference: “Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa”, is very apt and in line with current realities.
He said: ‘The world is facing the challenges of balancing the urgency of transition to cleaner energy with the obvious energy deficit and economic challenges experienced in recent times.
” It is expected that adaptive strategies for energy transition should be adopted in Africa.
This is the core of the conference.”According to him, there is need to maximise Nigeria’s abundant natural gas resources to address the nation’s energy deficit.
To this end, he said, there was need to enforce the penalty on gas flaring by oil companies to deter the practice which was affecting the country negatively.
Olafuyi said President Muhammadu Buhari had assured the global community of Nigeria’s commitment to achieving a net zero carbon emission by 2060 and was working toward that.
He also called for investments in gas infrastructure across the country and establishing policies that would support gas development and utilisation.
On the spate of oil theft in the country, Olafuyi said SPE was ready to assist the government in proffering solutions that could curb the menace.
He added that the activities of vandals and oil thieves were shortchanging Nigeria’s revenue and had become a huge challenge to the industry.
Olafuyi said the 2022 NAICE would feature contributions from Chief Timipre Sylva, Minister of State for Petroleum Resources, and Malam Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company Ltd. He gave other speakers as Mr Farouk Ahmed, Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority and Mr Gbenga Komolafe, Commission’s Chief Executive, Nigerian Upstream Petroleum Regulatory Commission.