Olusola Bello
TotalEnergies has advised Nigeria to accelerate the implementation of the Petroleum Industry Act because the window for investments into fossil fuels is narrowing.
The oil giant which gave the advise at the ongoing Conference and Exhibition of the Nigerian Association of Explorationist (NAPE) in Lagos warned that very few years remains for access to urgent funds to develop the Nigerian petroleum industry that could launch it into that era of energy transition and prosperity that the world envisions.
According to the Mike Sangster, managing director of TotalEnergies EP Nigeria Limited, he said, to unlock and maximize the potential of the PIA, the following points need to be addressed:
· Political will for 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.
· Proper/transparent management of the transition from the now-defunct agencies to the new ones.
·
The TotalEnergies chief executive officer who was represented by Victor Bandele, Deputy Managing Director, Deepwater TotalEnergies however described the Petroleum Industry Act as the most significant legislation to impact the oil and gas landscape due to its ramifications on the industry and country at large.
“The Act is expected to eliminate regulatory/legal hurdles, attract critical investments, unlock financial resources, accelerate local content development, and enhance employment, among other opportunities.”
He said the case for investments envisaged by the PIA still has to be made in view of climate concerns and the attention on energy transition. “We must appreciate that although fossil fuels will remain the main source of energy for the world for some time to come, the march to renewable energies is irreversible.”
“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.”
The company stated that in response to the global climate challenge and the growing demand for more affordable, more accessible, and cleaner energy, it 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, on the road to net zero by 2050.
“With the new identity, the Company underscored its resolve to produce more energy with fewer 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.”
“Our 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. Out 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.”
