OpeOluwani Akintayo
Lagos — President Mohammadu has explained reason behind Nigeria’s awarding of fresh marginal oil fields despite global drive towards energy transition.
In his address at the ongoing Nigeria International Energy Summit, N.I.E.S 2022 in Abuja on Monday, President Buhari said awarding of the oil fields would help Nigeria speed up its fossil fuels usage before the global target for abandonment of fossil fuels as energy of choice.
This year’s N.I.E.S, the 5th edition, is themed; ‘Revitalizing the Industry: Fuel and Energy Transition.
Represented by Minister of State for Petroleum Resources, Timipre Sylva, President Buhari listed awarding the marginal fields, passing the Petroleum Industry Act, PIA and speedy implementation, and declaration of 2021-2030 as a decade of gas, are some of the achievements of his administration, adding that with the Act in place, investors would be encouraged to sign on new projects.
The 2020 marginal field awards which was unveiled last May by the then Department of Petroleum Resources, DPR had 57 fields on offer with 665 companies indicating interest to acquire them.
However, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC in January, revoked fields awarded to 33 companies for failing to meet the 45 days deadline required to pay the signature bonus.
While delivering his speech as the Minister of State for Petroleum Resources, Sylva said energy transition must not come at the expense of making energy available to the people, especially the denied.
“Energy transition must be inclusive. Nigeria supports the use of gas as an energy transition fuel. Natural gas ticks all the boxes, and that is why 2021-2030 has been declared a decade of gas.
“With the PIA in place, expectations are high. And while we bask in the euphoria of the passage of the PIA, let us not forget to focus on the decade of gas. Nigeria cannot afford to be left behind in the global energy transition target”, he said.
In his address, Chief Executive Officer, the Nigerian National Petroleum Company, NNPC Limited, Mele Kyari, said energy transition must be done in “sanity and justice”.
He called upon stakeholders to invest in financing new projects, adding that the country was ready to work with partners to solve all challenges and issues that might arise during the course.
“Nigeria can’t achieve the decade of gas without financing. We know there are challenges and issues to be resolved, and that firms are now divesting and leaving the country. However, we are ready to work together with investors as we work towards energy transition and zero gas emissions”, he said.
