The Nigerian government is counting on an increase in Africa’s oil demand to help stave off the threat of energy transition as advanced economies ramp up moves to quicken the end of fossil fuels.
Sarkin Auwalu, the head of Department of Petroleum Resources, (DPR), the country’s upstream oil regulator while delivering a paper at a recent industry dinner said Africa’s demand for energy would continue to grow and Nigeria would have a significant role to play by unlocking a lot of its resources to contribute to that future need.
“Most importantly, we are still relevant, oil and gas is still relevant in Africa,” Auwalu said.
The opportunities for Nigeria according to Auwalu is in Africa’s low consumption patterns for oil, gas, electricity,
While Nigeria and other African oil producers have huge volumes of hydrocarbon reserves, manpower, relatively good climate, huge domestic market, challenges like poor fiscal and regulatory frameworks, limited technical knowledge and bare bone budgets for research and development are potent threats.
However, the world is moving on from fossil fuels with European countries setting deadlines for exiting production of combustion engine vehicles, investments funds shunning oil and gas projects and think tanks and academics in Europe and America pushing for faster decarbonisation, time is running out for oil.
Auwalu argued that Africa’s carbon emissions of around 2 percent should justify its continued production as the industry is the engine of the economy.
HIs paper, “A discussion on the future of the Nigerian Petroleum Industry” provided insights into relevant strategies from reservoir optimisation to improved collaboration between stakeholders and development of gas that when adopted should lead to improved and sustained growth.
Auwalu said that no African country refines petrol and the diesel refined is low density, presenting an opportunity to sell refined oil in Africa.
Leaders in the Oil and Gas sector in Nigeria gathered at the recent Petroleum Club’s 2021 Annual Business Dinner, to deliberate on the present state and future of the Nigerian petroleum industry.
The business dinner, which was sponsored by AA Holdings, a proprietary investment company, also elaborated extensively on sustaining the impact of the Oil and Gas sector in the Nigerian economy albeit the global drive for energy transition.
While speaking at the business dinner, the chairman, Petroleum Club, Layi Fatona, “The Oil and Gas industry in Nigeria in relation to the emerging energy transition must be addressed in a way that enables the sector to maximise its potential. This is necessary to ensure the development and transformation of the Nigerian society.”
Also speaking, Austin Avuru, executive chairman and founder, AA Holdings, expressed the company’s desire to continuously support key sectors in Nigeria.
“The Petroleum club remains a vital platform for the enhancement of the Oil and Gas industry in Nigeria. As a proprietary investment company, AA Holdings understands this value and impact and is proud to sponsor the Petroleum Club 2021 Business Dinner.
At the dinner, The Petroleum Club also honoured its newest octogenarian members: Godswill Ihetu and Chambers Oyibo.
The Petroleum Club is a non-political and non-profit making advocacy group comprising leaders in the Oil and Gas industry in Nigeria. The club’s principal mandate is to work with stakeholders in the Oil and Gas industry formulating policies and actions necessary for the growth and sustenance of the industry in Nigeria.
