TheCable

The Nigerian National Petroleum Company (NNPC) Limited says the country is faced with significant challenges in domestic gas utilisation and energy security. 

Margery Okadigbo, chairman of the NNPC board, said this at the ongoing offshore technology conference (OTC) in Texas, United States, with the theme: “Energy transition and the future of Africa”.

Okadigbo said Nigeria requires significant investments in the oil and gas sector to accelerate its energy transition plan.

According to her, Nigeria’s uptake of gas as a transition fuel was aimed at growing the economy and bridging the energy gap.

Okadigbo added that the increasing social and environmental pressures on many energy companies had raised questions regarding the role of oil and gas in a changing energy economy as well as the position of the companies in the societies they operate.

“This is the topic that we have taken up in different energy fora and is consistent with our multi-layer consideration on the future of oil and gas and our transition plans,” she said.

“As the world transits to substituting energy sources for cleaner fuels, Nigeria is still faced with numerous challenges in ensuring energy security, deepening domestic gas utilisation, and maximising revenues derivable from hydrocarbon resources.

“With the abundant oil and gas resources, Nigeria has chosen gas as the transition fuel to bridge the energy gap and create economic development.

“As world leaders and businesses join in the global solidarity against climate change and reduction of carbon emissions, NNPC Ltd is taking giant strides in lowering her carbon footprint, sustaining energy security, and driving prosperity in Nigeria.

“We believe that achieving and sustaining a carbon-neutral economy requires inclusive policy actions that guarantee access to finance and low carbon technology.”

Okadigbo expressed optimism that the enactment of the Petroleum Industry Act (PIA) would guarantee reasonable returns on investments, promote business and operational transparency, and proffer better fiscal regimes.

“It is expected that much more significant changes in overall capital allocation would be required to accelerate energy transitions, especially getting some key capital-intensive clean energy technologies to reach maturity,” she said.

She further urged participants to create and draw on the wealth of experiences at their disposal for realistic and responsible transition to cleaner energy.