The Federal Government has reportedly finalized preparations for exploring alternative funding mechanisms for the development of the nation’s oil and gas resources, according to the Nigerian Upstream Downstream Regulatory Commission (NUPRC).
This was said on Monday by Mr. Gbenga Komolafe, the Commission Chief Executive of NUPRC, at the Offshore Technology Conference (OTC), which is currently taking place in Houston, Texas, United States, during the opening ceremony of the Petroleum Technology Association of Nigeria (PETAN) pavilion and exhibition stand.
The conference which is a five-day event is tagged: “Energy Transition and AfCFTA: Key Reforms for Sustainable Development of the African Oil and Gas lndustry”.
According to Komolafe, the commission decided to create an alternate finance model for the business because it would need enormous capital to develop the nation’s hydrocarbon resources.
He asserts that Nigeria won’t be left out of the energy conversation since it is a place where possibilities and needs collide.
“Africa and by extension, Nigeria is well positioned because it has all it takes to bridge the energy gap in the light of energy transition.
He continued by saying: “Nigeria with abundant oil and gas reserves and other sources of energy mix, is well positioned to be a super power if all these hydrocarbon resources are well coordinated.”
The Petroleum Industry Act (PIA), which was signed into law, brought about a historic change in the petroleum industry and contained an appealing fiscal and regulatory framework Komolafe acknowledged.
Additionally, Mr. Gabriel Aduda, the Permanent Secretary of the Ministry of Petroleum, stated that the PETAN pavilion at the OTC had highlighted Nigeria’s diversity in the oil and gas industry.
“We are looking at African countries collaboration toward developing the oil and gas sector.
“This is especially important because we in Nigeria are totally aware of the need to carry the entire continent alone.
“And we are not looking at this entity as just Nigeria alone but the whole of African Petroleum Producers Organisation (APPO).
“So, we are looking at these beyond us. We are looking at the APPO,”
He said about eight African countries were part of the ongoing exhibition, adding that other African countries would join the conference.
According to him, this is extremely important because the place of local content cannot be over emphasised.
“That is why we are so happy with what PETAN is doing because PETAN is providing the capacity for local industry players to be able to strive,” he said.
Using the African Continental Free Trade Area (AfCFTA) as a practical tool, Mr. Nicholas Odinuwu, Chairman, PETAN, stated in his remarks that the OTC continues to explore developing a sustainable oil and gas business across the African continent in light of the energy shift.
“With our collective efforts, we are charting a new pathway for our industry and the energy future of almost two billion people that Africa is home to.
“Nigeria has taken the lead by developing an energy transition plan, launched in 2020, which outlines the technologies and support needed to achieve universal energy access and net-zero emissions by 2050.
“The fact is that Africa requires sustainable energy sources to meet the growing needs of all sectors of its economy and the energy transition is a crucial enabler of sustainable development.”
NAN reports that 12 Nigerian companies are participating at the PETAN oil and gas exhibition, at the ongoing OTC.
