The company also said it remained committed to making
positive social impacts while contributing to Nigeria’s achievement of the
United Nations’ Sustainable Development Goals (SDGs).
Mr. Effiong Okon, the Director, New Energy at Seplat said
this while delivering a keynote at the 45th edition of the Society of Petroleum
Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE)
themed: ‘Operationalising a Clean Energy Transition for Sustainable Development
in Africa’ on Wednesday.
Okon, who represented Mr. Roger Brown, CEO Seplat Energy,
said for a successful energy transition in Africa: “We must support the goals
of the Paris Agreement and align with society’s objective to get the world to
net zero carbon emissions by 2050, if not before.; as lower-emission
hydrocarbons, particularly gas, have a role to play during energy transition by
replacing diesel generators and biomass.
“Though hydrocarbon export will continue to be a mainstay of
the Nigerian economy and will fund Nigeria’s growth as well as its energy
transition, the Oil & Gas Industry has a role to play as a responsible
steward of Nigeria’s oil and gas assets, including those that might be
divested.”
According to him, in the longer term, the reality and threat
of climate change requires the decarbonisation of energy systems in Nigeria,
but sustainability and transparency must be at the heart of business operations
and decision making.
Speaking on ‘just transition’ Okon noted that there is the
need to balance decarbonisation with development, adding that: “Global warming
and climate volatility are existential threats to humanity and nature.
The world needs to accelerate efforts to achieve net-zero
and mitigate warming effects. Africa’s climate, agriculture and people will
suffer most in the coming decades. The problem has been caused by emissions
from developed-world countries that have enjoyed their ‘carbon privilege’ and
built strong economies on fossil fuels.
“However, we need to
consider the reality in the continent. Poverty, hunger, unemployment,
population growth abound here. Africa contributes just 3.3% of global
emissions. Most Africans (600 million) lack access to reliable energy, which
hampers development. Use of inefficient and costly diesel/ petrol generators
saps financial resources, drains foreign exchange and create pollution.
“Biomass use for cooking causes deforestation, health
problems and nearly 0.5 million premature deaths in Sub-Saharan Africa every
year. The developed-world’s drive to impose decarbonisation on Africa will
constrain development.”
Making the case for gas, the Seplat Director, said the
developed-world pressures to abandon fossil fuels are being pushed back by
recognition of the need to drive development with reliable energy.
COP27, he explained, would focus on how best to achieve this
balance for the benefit of tomorrow’s 2.5 billion Africans, of whom 500 million
will be Nigerian, adding that given current low emission levels, Africa can
achieve a disproportionate improvement in living stands through a globally
small increase in emissions from cleaner gas for power and cooking.
He called on players in the continent to leverage oil and
gas revenues to cash flow transition, but also tap international transition
funding where available, hence the need for good corporate governance.
The Seplat Energy executive, therefore urged industry
operators to focus on quick wins first, which are: decarbonising the upstream
and focus on producing ‘advantaged’ low-carbon barrels with low Scope ½; end
routine flaring and redeploy gas to power operations and local communities; and
deploy renewables to power operations where possible, and share with local
communities.
He added: “We need to develop gas as transition fuel
(Gas-to-power to replace diesel, move along value chain into power, e.g.
business parks, large buildings; hybrid gas-to-power / solar offerings; and
bottled gas products for domestic use. In addition, we can expand into
renewables (hydro, wind, geothermal, blue/green hydrogen; and develop and
monetise carbon capture and storage.”
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