By Emeka Ugwuanyi in Houston, Texas
Nigerian Upstream and Downstream Regulatory Commission (NUPRC) has developed an initiative that will seek alternate funding mechanisms to develop Nigeria’s abundant oil and gas reserves to aid growth of the economy. The Commission will do a roadshow to attract foreign and diasporan investors to invest in Nigeria’s oil and gas industry.
NUPRC’s Chief Executive, Mr. Gbenga Komolafe, stated this on Monday while declaring open the Nigerian pavilion organized by the Petroleum Technology Association of Nigeria (PETAN) at the ongoing 2023 Offshore Technology Conference (OTC) in Houston, Texas, United States.
Komolafe stated that the alternative funding mechanism becomes imperative considering the untapped huge hydrocarbon resources that Nigeria has and also in view of the energy transition the world is undergoing.
He noted that even as the energy transition conversation progresses, Nigeria shouldn’t be left out, adding that Nigeria is well positioned to be Africa’s energy hub in view of its abundant oil and gas resources and other sources of energy mix.
“Passage of the Petroleum Industry Act (PIA) created a landmark reform in the Nigerian upstream industry. PIA created attractive regulatory and administrative regime.
He commended PETAN for the organization of the Nigerian pavilion at the OTC and the achievements recorded by the Association in the past years especially the expansion of PETAN members operations to other countries such as Angola, Namibia and Guyana, among others, including countries outside Africa.
“There is a great convergence between the activities of PETAN and NUPRC, which is bringing Nigeria to the world and the world to Nigeria. But l must say that Africa as a continent is well positioned to bridge the energy gap much as the energy transition conversation progresses.
“In particular, Nigeria is a nation with abundant oil and gas reserves and other sources of energy mix, it is, therefore, well positioned to be the continent’s energy hub with coordinated arrangement of our energy resources. NUPRC is determined to create clarity and certainty in the industry based on feedback from the industry.
“The Commission will showcase initiative it is putting in place to leverage abundant capabilities in the industry in a manner that will create robust synergy to derive alternative funding mechanisms to monetise our abundant hydrocarbon resources.”
As much as energy transition conversation progresses, Nigeria will not be stranded, Komolafe assured.
In his remarks, the Permanent Secretary, Ministry of Petroleum, Mr Gabriel Aduda, said the Nigerian pavilion by PETAN at the OTC demonstrated Nigeria’s diversification in the oil and gas business.
“We are looking at African countries collaborating to develop the oil and gas sector. This is especially significant because Nigeria is fully aware of the need to carry the entire continent along.
“And we are looking at this entity not just as Nigeria, but as the entire African Petroleum Producers Organisation (APPO).
“So, we’re looking beyond ourselves. “e’re looking at the APPO,” he said.
He noted that around eight African nations were participating in the current exhibition and that other African countries will attend the meeting at which NUPRC will be showcasing Nigeria Tuesday at the OTC.
According to him, this is critical since the importance of local content cannot be overstated.
“That is why we are so pleased with what PETAN is doing, because PETAN is providing the capacity for local industry players to thrive.”
Chairman of PETAN, Mr Nicholas Odinuwu, in his welcoming and opening remarks, said OTC has continued to be a veritable platform to explore and establish sustainable oil and gas business throughout the African continent in light of the energy transformation, with the African Continental Free Trade Agreement (AfCFTA) serving as a valuable instrument.
“With our collective efforts, we are charting a new pathway for our industry and the energy future of Africa’s nearly two billion people.
“Nigeria has taken the lead by launching an energy transition plan in 2020 that outlines the technologies and support required to achieve universal energy access and net-zero emissions by 2050.”
“The fact is that Africa needs sustainable energy sources to meet the growing needs of all sectors of its economy, and the energy transition is a critical enabler of long-term development,” Odinuwu added.
Over 14 Nigerian companies are taking part in this year’s OTC, while the theme for Nigeria’s participants is “Energy Transition and AfCFTA: Key Reforms for Sustainable Development of the African Oil and Gas Industry.”
