*Says march to renewable energies irreversible
The Managing Director TotalEnergies Explorationa and Production Nigeria Limited, Mr. Mike Sangster, has advised the Nigerian Government to quicken the implementation of the Petroleum Industry Act (PIA) to maximise proceeds from its oil for the development of the economy.
Sangster gave the advice in view of the energy transition and the inescapable move by the world to renewable energies.
The TotalEnergies boss in his speech delivered at the management session of the Nigeria Association of Petroleum Explorationists (NAPE), on Monday, through the Deputy Managing Director, Deepwater, Mr. Victor Bandele, acknowledged that PIA will impact the oil and gas landscape due to its ramifications on the industry and country at large. The Act is expected to eliminate regulatory/legal hurdles, attract critical investments, unlock financial resources, accelerate local content development, and enhance employment, among other opportunities, he added.
The theme of this year’s NAPE management session is “PIA: Implication for Oil and Gas Industry and Energy Transition in Nigeria.”
On attraction of investments by PIA into the oil and gas industry, Sangster said: “The case for investments envisaged by the PIA still has to be made in view of climate concerns and the attention on energy transition. We must appreciate that although fossil fuels will remain the main source of energy for the world for some time to come, the march to renewable energies is irreversible.
“Nigeria may not have much choice over the speed and velocity of the energy transition. It is, therefore, very urgent that the country takes maximum advantage of the deregulation of the industry and other welcome provisions of the PIA to exploit her petroleum resources, build critical infrastructure and position competitively in the energy transition.
“President Buhari has outlined Nigeria’s path to net zero in consonance with the goals of the Paris Agreement,” adding that the current mantra at the company is “Energy Transition at TotalEnergies: More Energy, Less Emissions.”
He highlighted the company’s landmarks, noting that TotalEnergies is an energy company with footprints in over 130 countries around the world. We have been in Nigeria for over 60 years. We are the only International Oil Company (IOC) with presence across the entire value chain of the Oil & gas industry at the moment, he said.
“We started our downstream activities in Lagos in June 1956. And in May 1962, we began our upstream operations in Obagi, Rivers State. Today, our network boasts of 577 service stations spread across Nigeria. We are currently the second largest producer of crude oil in Nigeria and also the busiest IOC in the country in the last 10 years, having delivered Egina project in December 2018 and currently working towards bringing Ikike project onstream in 2022.
“In response to the global climate challenge and the growing demand for more affordable, more accessible, and cleaner energy, the Company has adopted the name TotalEnergies to affirm its identity as a broad energy Company and confirm its ambition to be a major player in the energy transition, on the road to net zero by 2050. With the new identity, the Company underscored its resolve to produce more energy with less emissions in order to contribute to the planet’s sustainable development and effectively address the issue of climate change. The Company is doing this by re-inventing itself and moving towards new energies, without renouncing its origins in oil and gas, but by decarbonising them as much as possible and growing in renewable electricity, hydrogen, biomass, wind, and solar power.
“Our Company’s energy mix will change significantly in the coming years. Currently, our production is about 55 per cent oil, 40 per cent gas, and five percent electricity. But by 2030, it will be 50 per cent gas; 35 per cent oil; and 15 per cent electricity. By 2050, the mix is targeted to be 40 per cent renewable power, 40 per cent gas (primarily carbon-free) and 20 per cent liquid products. Out target is to get to Net Zero in all our operations worldwide by 2050. We are committed to this target and working with all our stakeholders, we believe we can deliver cleaner, more affordable, and more available energy to as many people as possible.
“The fact is the PIA implementation must be accelerated. The window for investments into fossil fuels is narrowing. Very few years would remain for access to urgent funds to develop the Nigerian petroleum industry to launch it into that era of energy transition and prosperity that the world envisions.”
To unlock and maximize the potential of the PIA, Sangster listed the following points that need to be addressed:
- Political will for a consistent implementation of the provisions of the Law.
- Continuous engagement and consultations with all stakeholders for the unflinching support necessary for the success of the Law.
- Too frequent amendments will foster policy instability and instigate apprehension among investors.
- Too many litigations against oil companies threaten operational stability and induce long term uncertainties.
- Insecurity is a huge challenge.
- Proper/transparent management of the transition from the now defunct agencies to the new ones.
