*As Shell to explore more on deepwater
.Call for collaboration to energy transitioning
Operators in the petroleum sector on Monday frowned at the surge of emissions in the sector which the offshore operations account for a total of 20 per cent.
This development has continued to impact negatively on the socio-economic activities in Nigeria as oil corporations continue to carry out their operations in the country.
This were the views of operators in a panel discussion tagged, Focus on the Future: A Global Perspective on Offshore Energy, at the ongoing Offshore Technology Conference (OTC), 2021, holding in Houston, Texas, USA.
Amy Bowe, Head of Carbon Research, Wood Mackenzie, who made this assertion in her presentation, stated that the industry was in need of more will and technology to address the challenges
“The idea of decarbonization cannot be overemphasized as its benefits transit to environmental, operational benefits and financial benefits, including safety and lower cost to the environment. The process is already on the way and companies are beginning to embrace the reality of this discourse.
“Currently, offshore operations account for 20 per cent of emissions in the petroleum sector but the clamour for decarbonizatioin will see this record lower.”
Jonathan Landes, President Subsea, TechnipFMC, added that there was no gainsaying that exploration of deepwater will not stop as oil and gas remains the driver to the actualization of the energy mix being clamoured for.
“For certain, oil and gas is a major component of the energy mix in the next decade. However, there has to be a collaborative effort from all stakeholders in driving the green house emission programme
“While technology is needed in driving this process, it is also important that these technologies are simplified. The collaboration of stakeholders is key to supporting this movement as the positive impact of this development remains a win win for all parties. ”
While reiterating its position in investing more on exploration, Bill Langin, SVP – Deepwater Exploration, Shell, said the company was seeking to invest more in exploration on the deepwater.
Recall that Shell’s Nigerian onshore joint venture SPDC which has sold about 50 per cent of its oil assets over the past decade, had threatened to sell of its onshore oilfield in the country.
Wood Mackenzie group, an analytical and consulting firm, has analysed the company’s deepwater business in Nigeria and the valuation of its assets ahead of the final closure of divestment moves.
The report said Shell is preparing for a new era in Nigeria with a much smaller, advantaged portfolio after “decades of dominance,” citing the energy company’s SNEPCo, which is centred on OML 118.
However, the company noted that it is investing a budget of about $1.5 billion per annum in the exploration of more deepwater projects that would bring about profitability to its operation “in an environmental and friendly manner.
“Greenhouse gas emissions reduction, which is a global demand, will help for a sustainable transitioning of the energy mix. Emissions are not good for business and society and investors are earnestly expecting decarbonization and we would follow that path.
