Minister of state for petroleum resources, Timipre Sylva has disclosed that the oil and gas industry will face more scrutiny in the energy transition journey.
This was disclosed on Tuesday by Sylva in Abuja at the CEO Roundtable Session at the ongoing fifth Nigeria International Energy Summit (NIES 2022).
The roundtable, which engaged top CEOs from the national oil company, international and indigenous companies, deliberated on “Strategies for Confronting the Energy Transition”.
According to Sylva, the shift from fossil fuels would require more oil companies to account for the impact of their activities on the environment.
He added that even though energy transition was crucial, fossil fuels would still play a leading role in the country’s energy and economic structure.
“What is obvious from this energy transition journey is that the oil and gas industry will face more scrutiny in their operations and business models,” he said.
“They will have to explain more often the impact of their activities to the environment, their contributions to reducing greenhouse gas emissions and their efforts towards achieving net-zero carbon emissions.
“While we pursue the country’s energy transition agenda, let us also recognise that fossil fuels will continue to play a critical role in our energy and economic systems.”
He said while it might contradict the energy transition agenda, fossil fuels would remain an integral part of the vision in our energy transition journey.
He said that the ministry would ensure the discharge of its mandate to become an enabler for a seamless energy transition in Nigeria.
Sylva also noted that the ministry had strived to ensure an enabling environment to improve the oil and gas value chain, driven by modern technology, industry, best practices, stakeholders’ engagement and innovations in alternative energy.
“No energy company will be unaffected by this energy transition. Every part of the industry needs to consider how to respond,” he said.
“Doing nothing is simply not an option.”
Osagie Okunbor, country chair, Shell Companies in Nigeria (SCiN), said the company strongly believes in universal energy targeting zero net emission.
Okunbor said it was looking forward to increasing gas component by 55 percent in its energy mix, adding that it had a clear target for net zero-emission.
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