The Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, has said that decreasing investments in hydrocarbons (oil and gas) is not a pathway to energy security.
He stated this on Tuesday, February 14, during the ongoing Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos state.
Kyari, who was represented by the Executive Vice President of Upstream at NNPC, Engr. Adokiye Tombomieye, called for collaboration across different areas to ensure energy security and spread the wealth in Africa. Thisday quoted him to have said:
- “We should collaborate and share knowledge and help each other in critical areas, including technology, exploration and production, research and development, technical expertise, and human capacity development to spread the wealth within the continent.
- “This would in no small measure assist in achieving energy independence and also aid the transition to cleaner energy sources such as gas to sustain the region. This presents an enormous opportunity for us to form partnerships across the continent and build a sustainable future
- “Ironically, our restructuring is happening when the Energy transition discussion is gaining momentum, and major fund providers for upstream petroleum investment are now activists and anti-fossil fuel.
- “As I have always canvassed, decreasing investments in hydrocarbon ventures cannot guarantee global energy security in the near future. Rather, an inclusive policy that guarantees access to finance and low-carbon technologies are key to sustaining global energy security and equitable growth.”
Nigeria needs more oil and gas investments: In recent years, Nigeria has experienced dwindling oil and gas revenues due to vandalism and reduced production as some majors have indicated an interest in selling off their oil and gas assets.
In contrast, others have sold off their assets. This has led to increased local participation by local companies However, more investments are needed in Nigeria’s oil and gas sectors.
This is especially important as the country missed the chance to increase its oil and gas revenues, following the oil price rally occasioned by the ongoing Russia-Ukraine war, which saw oil majors like Shell, TotalEnergies, Equinor and Chevron posting significant profits for the year 2022.
Developing innovative solutions for energy: Mele Kyari also said that innovative solutions are needed in Africa’s energy industry. According to him, this can only happen through viable partnerships. He said:
- “At NNPC Limited, we understand the importance of partnerships in achieving a sustainable energy industry in Africa. This is why we have been working closely with countries, companies and other stakeholders to develop innovative solutions that meet the energy needs of the continent.
- “We must acknowledge that this new era of automation and artificial intelligence is focused on the application of cutting-edge technologies, such as the use of robotic drilling systems for unmanned operations, the deployment of cognitive computing in upstream operations, super specialized sensors for real-time monitoring and maximization of reservoir yields.”
What you should know: In December 2022, the Chief Upstream Investment Officer at the NNPC Upstream Investment Management Services (NUIMS), Bala Wunti said that the NNPC was collaborating with several key stakeholders to address crude oil theft using emerging technologies. According to him, the security architecture has been improved to tackle Nigeria’s difficult geology terrain which has in the past, prevented end-to-end visibility in Nigeria’s maritime economic zone.
He said the improved rectangular architecture layered on technology, bringing together the security agencies on one hand, the regulators on another, the upstream operators on another and the community on the other end, to ensure maximum visibility and real-time monitoring at the command-and-control centre.