. Insists gas development offers huge job opportunities
By Clara Nwachukwu
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has called for the development of innovative approaches to attract investment and secure jobs in the oil and gas industry in an era of energy transition.
The Commission Chief Executive officer (CCE), NUPRC, Gbenga Komolafe, made the call yesterday in his keynote address at the maiden Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) annual conference tagged: ‘Energy and Labour’ summit.
The call comes against the backdrop of on-going divestments by the international oil companies (IOCs) from onshore oil assets on the back of oil theft, and lack of funding for hydrocarbon projects amid calls for cleaner fuels, which threaten job security in the industry,
Komolafe, who spoke on: “Energy transition and its effects on the Nigerian workforce,” said: We are very aware that energy transition may threaten job security and stifle investment in the Nigerian oil and gas industry.
“Fundamentally, it is important to note that within the next few years most IOCs shall divest from onshore oil and gas assets due to poor return on investment as a result of crude oil theft and this may pose threat to job security.”
Ultimately, as the Energy transition draws closer, the government will develop robust just transition policies that will provide guidelines on how oil and gas professionals can leverage on their core technical expertise to pivot to other clean energy sources.
Resilient energy source
Aligning with the Federal Government’s position, Komolafe also argued that gas reserves would be a more resilient energy source under a range of energy transition scenarios.
He said: “I align fully with the policy of government which is hinged on ensuring that we utilise our huge gas resources as a transition fuel towards cleaner energy sources.
“For the government, we must utilise our hydrocarbon resource for industrialisation and economic growth.”
He also noted that already “The PIA, its corresponding regulations and government policies have the capacity to build a resilient and sustainable oil and gas industry.”
He added that these policies “will latch onto critical socio-economic factors across the world to increase gas production, build a robust gas infrastructure that will entrench Nigeria as a gas hub across Africa and Europe, all these will in turn create more jobs and attract investment across the petroleum value chain for the benefit of the Nigerian workforce.”
To this end, he said: “However, it is expected that indigenous players would leverage on this to recruit experienced professionals who will in turn grow local capacity.”
Such indigenous players are also “urged to take advantage of the predictable licencing rounds as enshrined in the PIA and relevant regulations to form big mega companies that will grow in-country capacity and also expand outside the shores of Nigeria”
Komolafe also argued that another critical enabler that can affect the Nigerian workforce during this time of energy transition phase is just transition.
“The ‘just transition’ philosophy ensures environmental sustainability as well as decent work, social inclusion, and poverty eradication. Given that Nigeria has a high poverty rate, the importance of just transition principles cannot be overemphasized.”
He assured that “Ultimately, as the Energy transition draws closer, the government will develop robust just transition policies that will provide guidelines on how oil and gas professionals can leverage on their core technical expertise to pivot to other clean energy sources.”
