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By Adewale Sanyaolu
As the global energy transition journey continues to gathered momentum, Oando Energy Resources has stressed the need for Nigeria and other African nations to intensify their efforts towards achieving the continent’s energy transition outlook in order to evade being left behind by the rest of the world.
The company also called for a proactive approach and a robust government action plan to support gas development and the overall transition towards clean energy.
Dr. Alex Ainojie, Chief Operating Officer of Oando Energy Resources, stated this at a panel session at the recently held NOG Energy Week in Abuja on the theme’ Accelerating gas development for Nigeria’s energy transition journey’
He affirmed that a collective effort from all stakeholders is essential to create a thriving and sustainable energy ecosystem for Nigeria’s future generations.
According to him ‘’ Nigeria has the potential to lead the way in Africa’s energy transition journey, and it is up to all stakeholders, including the government and private sector, to work together towards a more sustainable future.’’
‘’Nigeria has a significant role to play in the global energy transition, and there are several opportunities within the gas ecosystem that can be leveraged to accelerate this transition.’ He stated
Irune highlighted that one opportunity lies in utilizing the wet components of the country’s gas resources to fuel the transportation sector and other critical infrastructure dependent on liquid fuel. This approach could pave the way for greener alternatives and reduce carbon emissions.
Speaking on CNG as a fuel source for mass transit, Dr. Irune acknowledged that the biggest challenge is transporting it to the fuelling point. He proposed using CNG to drive electricity for electric mobility and electric public transport, shifting the focus from getting CNG into vehicles to getting it to a park where electric vehicles can recharge.
He also suggested using virtual pipeline capacity to bring clean cooking gas to remote areas, supporting smaller villages, townships, and areas that have broken away from the grid. He emphasized that education and a mindset shift are critical in accelerating the transition towards cleaner energy sources.
He noted that for these opportunities to make a real impact, the importance of an enabling environment. Harmonizing policies, creating a blueprint for progress, and securing a stable investment environment are key steps. “We cannot realise the full benefits of partnerships if the issue of security isn’t addressed,” he said.
Others who spoke at the panel discussion included Abdulkabir M. Ahmed, EVP – Gas, Power and New Energies at NNPC Limited, Akachukwu Nwokedi, President of the Nigerian Gas Association (NGA) and General Counsel and Company Secretary at Nigeria LNG Limited, and Eberechukwu Oji, Managing Director and Chief Executive Officer at ND Western.
NAICOM to deepen specialized products for oil, gas sector
The further deepen its collaboration with the Nigerian Content Development and Monitoring Board(NCDMB), the Nigerian Insurance Commission(NAICOM) has disclosed plans to encourage specialized products that addresses the needs of the oil and gas industry.
Commissioner for Insurance and Chief Executive Officer (CEO) of NAICOM, Mr. Olorundare Sunday Thomas, stated this at the Oriental News Summit on ‘’Building Local Content Synergy Between the Oil and Gas and Insurance Sector in Nigeria’’ held in Lagos at the weekend.
He added that there is the urge to intensify the ongoing drive to facilitate platforms that address the demand-supply gap; address all potential regulatory impediments; support the development of human capacity and ensure technical capacities of insurance suppliers; ensure adequate risk pricing and comprehensive coverages and risk management
As the regulator, Thomas said NAICOM is committed to creating an enabling environment that will consistently enhance increased capacity of the Insurance Institutions both financially and technically.
‘‘Beyond our promises and without pre-empting the paper presenters and discussants, I will express the need for reciprocal expectations from operators in the oil and gas sector, one of which is timely compliance with the requirements of the Guidelines jointly issued by the Commission and NCDMB,’’.
He explained further that the ultimate goal, following the mandate to develop indigenous capacities to
participate in the oil and Gas Industry, is for both regulators to collaborate to be able to facilitate, promote adequate assessment of needs of the oil and gas Industry and influence the behaviour of insurers, reinsurers and Brokers in manners that addresses the needs for national growth and development.
He added that the synergy between both industries was renewed when both agencies identified the need for a veritable platform for inter-agency collaboration in order to give effect to the requirements of Sections 49 and 50 of the NOGICD Act 2010 by providing guidance to operators in the oil and gas necessary for satisfying the provisions of the law in relation to insurance transactions.
According to the NAICOM boss, the journey for the renewed collaboration transited to the signing and unveiling of the Guidelines on submission of Insurance Programme by operators, project promoters, alliance partners, and Nigerian indigenous companies in the Nigerian oil and gas Industry.
Other than the circulation of the Guidelines, there was an official unveiling at the 21st NOG Energy Conference and Exhibition in Abuja.The Jointly issued Guidelines portend to satisfy the intent and provision of the laws: thereby enabling the NCDMB monitor utilization of in-country insurance capacity which is a road to increased retention, growth in in-country technical capacity, Job creation, increased penetration and GDP growth, human capacity development, and many others.
It is also projected that the Guidelines will entrench effective regulatory oversight. This is to be the dividend of an active approach to joint regulatory framework for driving local content in Nigeria,’’.
Also speaking, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, urged the oil and gas operators to imbibe the practice of local content in their system by patronising local insurance firms.
Wabote, who was represented by Director, Corporate Services, NCDMB, Patrick Oba, confirmed that the performance of the insurance sector, particularly in relation to oil and gas businesses is low, urging the insurance operators to bridge the capacity and capability gap.
” We need to grow local capacity and capabilities. We have created a strategic roadmap from 2017 – 2027 to grow local content to 70% and we are working aggressively to meet that target,”.
