The Energy Republic February Edition 2022

NIGERIA OIL AND GAS
PIA: A New Dawn for Nigeria’s Oil and
Gas Industry - Sylva
Nigerian Content Fund exceeds $500m –
Simbi Wabote
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NLNG Commences Plans for Train 8 to
Reduce Carbon Emission
President Buhari: Nigeria Energy Sector Recorded
a Milestone in 2021
Speaking at the opening ceremony of
Africa’s foremost energy industry event,
Nigeria International Energy Summit
(N.I.E.S), President Mohammadu Buhari, disclosed
that the Federal Government through the Ministry
of Petroleum Resources together with all its
Parastatals have done a great job sustaining the
summit since inception in 2018.
“This is quite commendable and something to be
proud of. More importantly, the summit has been
of great value in terms of policy input for
government and business development resource
for the private sector.”
The President said year 2021 was a milestone for
the Nigeria’s energy sector as it witnessed a
number of record-breaking activities. Three of
these activities stand out: first, the successful
conclusion of the Marginal Fields Bid Round;
second, the Petroleum Industry Act (PIA) seeing the
light of the day, and the third is the Decade of Gas
initiative.
He made it known that both the Marginal fields bid
round and the Petroleum Industry Act surmounted
over two-decade challenges in the doldrums before
they saw the light of the day. For the Decade of Gas
initiative, it holds a promise of a prosperous Nigeria
for Nigerians.
“You might ask; why would the successful
conclusion of the Marginal Fields Bid Round be such
a big deal when the world is moving away from
fossil fuels? The answer is simple; awarding the
marginal fields gives Nigeria the opportunity to
speed up its fossil fuel exploitation and make good
use of the resources for the betterment of the
country rather than abandon the huge oil and gas
reserves in the ground.”
He maintained that crude oil prices are on the rise
again after turning negative in April 2020 which is a
great opportunity for the country. With the
Petroleum Industry Act (PIA) in place, there should
be no excuses.
The enabling investment environment which has
been the bane of the industry has been taken care
of by provisions in the PIA. There is now a level of
certainty for the regulatory, administrative and
fiscal framework and the legitimate grievances of
H.E Muhammadu Buhari, President of the Federal Republic of Nigeria
host communities most impacted by activities of
the industry has been addressed by the Act.
According to the President, “to demonstrate our
seriousness, this administration did not waste time
with the implementation of PIA. We moved quickly
and scrapped the existing agencies and replaced
them with new ones. We have inaugurated their
new Chief Executives too.”
He stated further: “We also ensured the
incorporation of the Nigerian National Petroleum
Company Limited (NNPCL) under the Companies
and Allied Matters Act (CAMA). The NNPCL is a
limited liability company now and our target is to
make it the biggest, the most capitalized and the
most profitable company in the whole of Africa.”
The Decade of Gas initiative as a major objective,
remains the transformation of Nigeria into a gasbased
industrialised nation through enhanced and
accelerated gas revolution. The government will
ensure further optimal exploitation and utilization
of the country’s vast Natural Gas resources. Given
the country’s potential of about 600 trillion cubic
feet, Natural Gas has the enormous potential to
diversify and grow Nigeria’s economy.
“We are fully aware that energy transition raises the
bar in terms of environmental, social and
governance demands. We do not have to panic. We
are already building blocks and bricks that will
ensure seamless energy transition as the country
joins in the race for net zero carbon emission.”
Due to the country’s enormous gas potentials, the
President added, that the current administration
declared Natural Gas as the transition fuel for
Nigeria. Without doubt, Natural Gas ticks all the
boxes and Nigeria is prepared to face the challenge
of the rising global demand for cleaner energy
sources.
He urged the summit to develop smart home-grown
goals for the country’s energy transition.
“We are waiting to deliberate on the strategy paper
from this summit and incorporate critical parts of it
into government’s policies where necessary.”
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THE ENERGY REPUBLIC I SPECIAL EDITION