By Tochukwu Bliss, Abuja
Seplat Energy Plc, a leading dual-listed Nigerian independent company, says Nigeria’s sub-surface potential could be largely optimised and oil and gas production levels increased if divestment and other related deals are expedited.
The CEO Seplat Energy, Roger Brown, said this during a panel session dubbed, “Defining the Regulatory Frameworks Required to Support the Capabilities of Independents and Incentivise Growth,” at the just-concluded, 2024 NOG Energy Week Conference & Exhibition, in Abuja.
Mr. Brown said the success of local independent energy companies will benefit Nigeria through oil revenues and the development of a domestic gas-to-power industry.
He said this will help to fund expansion into renewable energy to help Nigeria increase energy access and unlock its entrepreneurial population by providing reliable and affordable energy in accordance with the UN Sustainable Development Goals.
The Seplat CEO said: “International Oil Companies (IOCs) will look to divest to credible local players, those with high levels of governance and accountability in their ESG efforts. Indigenous players also need strong balance sheets and credibility in international financial markets, because the assets they’re acquiring will doubtless need future development.
“Also, indigenous companies must commit to working with communities to maintain or increase Nigerian content, as Seplat Energy has been doing for many years.”
Nigeria’s biggest decarbonisation priority is to end small-scale generation and get households and businesses onto a reliable national grid that uses our gas resources, lowers the cost of electricity and allows renewable energy to be developed and connected into a nationwide grid.
Speaking on the country’s energy aspirations, he said the independents will play a key role in realising the aspirations of the “Decade of Gas”, adding that a strong governance framework is needed to support bankability of private sector direct participation/investment in this space.
“Nigeria’s biggest decarbonisation priority is to end small-scale generation and get households and businesses onto a reliable national grid that uses our gas resources, lowers the cost of electricity and allows renewable energy to be developed and connected into a nationwide grid.
“Seplat Energy is committed to ending routine flaring by the middle of next year and we urge all other producers to make this a priority,” he said.
He added that Seplat Energy’s new ANOH gas plant is capable of supplying enough gas to support more than 1GW electricity on the grid and this can displace hundreds of thousands of home generators.
This, he said, will reduce the cost of electricity and hopefully get rid of these expensive and highly polluting generators, which are just a huge drag on Nigeria’s economy, and which create massive problems with carbon emissions.