Lagos — Mike Sangster, Managing Director, TotalEnergies EP Nigeria Limited has said that; although OPEC currently canvasses for inclusion of all forms of energy in the future mix, however, case for investments envisaged by the Petroleum Industry Act, PIA has to be made in view of climate concerns without diverting attention from energy transition, adding that there is no going back on world’s choice of renewables as the future energy.
While delivering the sponsor’s address at the management session of the ongoing Nigeria Association of Petroleum Explorationists, NAPE conference in Lagos on Monday, Sangster explained that although fossil fuels will remain the main source of energy for the world for some time to come, however, the “march to renewable energies is irreversible”.
Themed: ‘PIA: Implication for Oil and gas Industry and Energy Transition in Nigeria’, Sangster added that 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”, he said, citing President Buhari’s recent outlining of Nigeria’s path to net zero in consonance with the goals of the Paris Agreement.
TotalEnergies is an energy company with footprints in over 130 countries around the world.
The firm prides itself as having been in Nigeria for over 60 years, and the only International Oil Company, IOC currently with presence across the entire value chain of the Oil & gas Industry. Having started its downstream activities in Lagos in June 1956, in May 1962, it began its upstream operations in Obagi, Rivers State. Today, its network boasts of 577 service stations spread across Nigeria. Currently the second largest producer of crude oil in Nigeria, the busiest IOC in the country in the last 10 years, delivered the Egina project in December 2018, the firm is currently working towards bringing the Ikike project onstream in 2022.
In response to the global climate challenge and the growing demand for more affordable, more accessible, and cleaner energy, he said 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, and that the firm is 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”.
Sangster said the company’s energy mix will change significantly in the coming years.
“Currently, our production is about 55% oil, 40% gas, and 5% electricity. But by 2030, it will be 50% gas; 35% oil; and 15% electricity. By 2050, the mix is targeted to be 40% renewable power, 40% gas (primarily carbon-free) and 20% liquid products. Our 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”, he said.
He, however, clarified that 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”.
However, to unlock and maximise the potential of the PIA, he said the following needs 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, including proper/transparent management of the transition from the now defunct agencies to the new ones.