Nigeria’s, others’ energy demand to rise by 35 % - Kyari

The energy demand of Nigeria and other African countries is expected to increase by between 30 per cent and 35 per cent to support the projected increase in population and industrialisation, the Group Chief Executive Officer, Nigerian National Petroleum Company (NNPC) Limited, Mr. Mele Kolo Kyari, has said.

He stated this at the seventh Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos.

The event had “Harnessing a Sustainable African Energy Industry through Partnerships” as theme.

The conference attracted over 800 delegates, over 50 participating countries, and over 200 exhibitors and over 6000 exhibition visitors.

Represented by the Group Executive Director, Upstream, AdokiyeTombomieye, the state-run oil firm chief noted the oil and gas industry was experiencing a significant transformation following the passage of the Petroleum Industry Act (PIA 2021).

He said the Act had provided role clarity in governance, rule-based administration, attractive and flexible fiscal terms and direct benefits for the host communities targeted at creating enablers for investor confidence in the Nigerian oil and gas sector where ample opportunities exist.

“Ironically, our restructuring is happening at a time the energy transition discussion is gaining momentum, and major fund providers for petroleum upstream investment are now activists and anti-fossil fuel,” he said.

He said an inclusive policy that guaranteed access to finance and low-carbon technologies was key to sustaining global energy security and equitable growth, adding that decreasing investments in hydrocarbon ventures cannot guarantee global energy security in the near future.

Kyari said Nigeria being geographically situated in the sub-African region and also a foremost leader in the oil and gas industry in sub-Saharan Africa must capitalise on the advancements made in the industry to meet her energy demands, guarantee energy supply, expand her economies and overall build a sustainable future for millions of people beyond her shores adding this presents an enormous opportunity for to form partnerships across the continent and build a sustainable future.

Kyari said the need for partnership was more reinforced as more African countries continued to make hydrocarbon discoveries. 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, he said, 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.

Kyari 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.”

Kyari said the nation’s survival instincts showed it had the requisite knowledge and skills to sustain our industry and take it to the next level, however added we could do it alone. He therefore called for support to build on the gains made so far, interact, and provide meaningful solutions that would promote the sector and make lives better.

While thanking the Petroleum Technology Association of Nigeria (PETAN) for organizing the conference, Kyari reassured the commitment of the NNPC Limited to fully partnering with all players in the energy industry to drive Africa’s energy sector towards sustainability and growth.

Chairman of PETAN, the organizer of the conference, Nicolas Odinuwe said the requirements for energy were immense and increasing. According to him, there are new issues and opportunities across the globe especially as it affected the oil and gas industry. He therefore stressed the need to chart a way forward on energy availability, energy security, energy sustainability and affordability within the continent.

Odinuwe who noted energy was core to the economies of 55 member states that constituted Africa said as part of ways to harness and sustain the sub-Sahara energy market PETAN had continued to reach out to other regions and bodies for partnerships/collaboration and Support.

These, he said included an African local content business e-platform, (a one stop collation of available opportunities, capacities and capabilities within the sub-Sahara – currently being developed by the local content associations. This, he said, would be launched by the third quarter of this year.

Others are integrated one -skill passport for welding and related practices with The Welding Federation (TWF), African local content funding (coordinated by Nigerian Content Development Monitoring Board (NCDMB), adding that PETAN Seal of quality(PSQ) launched few years ago is being expanded to be industry inclusive in partnership with the NCDMB and relevant stakeholders.

Odinuwe said SAIPEC was one of the premier annual energy conferences within sub-Saharan Africa, bringing together hundreds of local and international companies including technology providers and regulators to inform on domestic and international energy sector developments, business transactions and cross border collaborations.

He said the collaborations had also extended to Uganda, Mozambique, Tanzania, Senegal, Ghana, Angola, Guyana and others.

He said with AFCFTA, the African Union should consider a unified/ integrated African certification/standard as practiced in America, European Union, Britain etc.

“We should seriously consider eliminating multiple certifications domiciled outside our sphere and the associated huge foreign exchange impact. (An indirect and continued colonial vestige). These institutions outside Africa (supported by their governments) have made our respective standardization agencies confined to just names,” adding the TWF personnel certifications/skill passport is a step in the right direction.

He noted human capacity development was very fundamental in the growth of any economy and local content adding that as technology is evolving, it is important to constantly acquire new knowledge and skills through training and retraining.

“As we look to the future, we face significant challenges in the ways energy is produced and consumed, including the effects of geopolitical instability, poverty and energy poverty, economic uncertainties, and the climate songs”.

Odinuwe said PETAN was continually committed to finding collaborative innovative solutions as well as working with its stakeholders and partners to ensure a sustainable and secure energy solutions and supply.

“SAIPEC continues to place its emphasis on the future of the energy, oil, and gas industry through Sub Saharan Africa with collaboration at the forefront of its objective and local content at its nucleus,” he added.