TheCable

Gbenga Komolafe, chief executive officer (CEO), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), says most  international oil companies (IOCs) will divest from onshore oil assets in next few years as calls for energy transition persist.

Komolafe made this known on Tuesday during his keynote address at the maiden Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) annual conference tagged ‘energy and labour’ summit.

Komolafe spoke on the topic ‘energy transition and its effects on the Nigerian workforce’.

He said the divestment would affect job security, adding that it would be largely driven by crude oil theft as well as underinvestment.

Komolafe, therefore, asked indigenous players to grasp the opportunity to employ competent professionals in the sector.

“Fundamentally, it is important to note that within the next few years most IOCs shall divest from onshore oil and gas assets due to poor return on investment as a result of crude oil theft and this may pose threat to job security,” he said.

“However, it is expected that indigenous players would leverage on this to recruit experienced professionals who will in turn grow local capacity, in addition indigenous players are urged to take advantage of the predictable licencing rounds as enshrined in the PIA and relevant regulations to form big mega companies that will grow in-Country capacity and also expand outside the shores of Nigeria” 

Komolafe’s statement comes on the back of divestment moves by IOCs, including Total Energies, Shell and ExxonMobil.

Further speaking, NUPRC boss admitted that energy transition was valid, however, the timing is uncertain.

“Energy transition may threaten job security and stifle investment in the Nigerian oil and gas industry,” Komolafe said.

“However, I align fully with the policy of government which is hinged on ensuring that we utilise our huge gas resources as a transition fuel towards cleaner energy sources.

“For the government, we must utilise our hydrocarbon resource for industrialisation and economic growth.

“The PIA, its corresponding regulations and government policies have the capacity to build a resilient and sustainable oil and gas industry that will latch onto critical socio-economic factors across the world to increase gas production, build a robust gas infrastructure that will entrench Nigeria as a gas hub across Africa and Europe all these will in turn create more jobs and attract investment across the petroleum value chain for the benefit of the Nigerian workforce. 

“Ultimately, as the energy transition draws closer, the government will develop robust just transition policies that will provide guidelines on how oil and gas professionals can leverage on their core technical expertise to pivot to other clean energy sources.”