Nigeria to explore alternative funding model for oil and gas industry

The Nigerian Upstream Downstream Regulatory Commission (NUPRC) says the Nigerian Government has concluded plans to explore alternative funding models for development of the country’s oil and gas resources.

The Commission Chief Executive of NUPRC,Mr Gbenga Komolafe said this on Monday during the opening ceremony of the Petroleum Technology Association of Nigeria, PETAN pavilion and exhibition stand at the ongoing Offshore Technology Conference, OTC, in Houston, Texas, United States.

Komolafe said that the need to develop the country’s hydrocarbon resources required huge funding, hence the decision of the commission to develop alternative funding model for the industry.

According to him, Nigeria will not be left behind in the energy conversation discussion as the country is a place where needs meet opportunities.

“Africa and by extension Nigeria is well positioned because it has all it takes to bridge the energy gap in the light of energy transition.

“Nigeria with abundant oil and gas reserves and other sources of energy mix, is well positioned to be a super power if all these hydrocarbon resources are well coordinated,” he said.

Komolafe said the signing into law of the Petroleum Industry Act, PIA had created a landmark reform in the petroleum industry which included attractive fiscal and regulatory regime.

Also, the Permanent Secretary, Ministry of Petroleum, Mr Gabriel Aduda, said that the PETAN pavilion at the OTC had showcased  Nigeria’s diversity in oil and gas industry.

Aduda said: “We are looking at African countries collaboration toward developing the oil and gas sector.

“This is especially important because we in Nigeria are totally aware of the need to carry the entire continent alone.

“And we are not looking at this entity as just Nigeria alone but the whole of African Petroleum Producers Organisation (APPO).

“So, we are looking at these beyond us. We are looking at the APPO,” he said.

He said about eight African countries were part of the ongoing exhibition, stating that other African countries would  join the conference.

According to him, this is extremely important because the place of local content cannot be over emphasised.

“That is why we are so happy with what PETAN is doing because PETAN is providing the capacity for local industry players to be able to strive,” he said.

Chairman of PETAN, Mr Nicholas Odinuwu, said the OTC continues to discuss on building a sustainable oil and gas industry across the African continent in light of the energy transition, using the African Continental Free Trade Area, AfCFTA as a veritable tool.

Odinuwu said: “With our collective efforts, we are charting a new pathway for our industry and the energy future of almost two billion people that Africa is home to.

“Nigeria has taken the lead by developing an energy transition plan, launched in 2020, which outlines the technologies and support needed to achieve universal energy access and net-zero emissions by 2050.

“The fact is that Africa requires sustainable energy sources to meet the growing needs of all sectors of its economy and the energy transition is a crucial enabler of sustainable development.”

Twelve Nigerian companies are participating at the PETAN oil and gas exhibition, at the ongoing OTC.

The theme of the five-day conference is “Energy Transition and AfCFTA: Key Reforms for Sustainable Development of the African Oil and Gas industry”. (VON)