Oando Energy Resources emphasized the importance of Nigeria being proactive in extracting its abundant crude oil reserves to support its socio-economic growth and industrialization amidst the challenges of energy transition.
The company also highlighted the significance of utilizing Nigeria’s vast proven and potential natural gas resources for promoting sustainable development. Dr Ainojie Irune, the Executive Director of Oando Plc and Chief Operating Officer of Oando Energy Resources, delivered this message during a panel session at the recently concluded Nigerian Oil and Gas (NOG) Energy Week 2024 in Abuja.
In his discussion on “Navigating a Sustainable Future for Independent Producers,” Irune advised African nations to approach the 30-year Sustainable Development Goal (SDG) 7 vision with caution.
He criticized Africa’s rapid move toward green energy as insincere, arguing that the continent, rich in energy resources but plagued by widespread poverty, cannot afford a swift shift to renewable energy. He expressed that transitioning to renewable energy would only deepen poverty, countering the Sustainable Development Goal (SDG) 7 vision to achieve universal access to modern energy services by 2030 and reduce greenhouse gas emissions. Despite committing to converting all energy resources to renewable sources, he deemed it unrealistic given the current circumstances.
Irune, also the President and Chief Executive Officer of Oando Clean Energy Limited, stressed the importance of maintaining a balanced energy mix, highlighting the ongoing significance of oil and gas in the future. He noted that Oando no longer feels pressured by the energy transition, opting to enhance crude oil extraction instead. He emphasized the necessity for African countries to maximize crude oil extraction and utilize natural gas to drive sustainable development on the continent.
Underlining Oando Plc’s dedication to bolstering the African economy through renewable energy initiatives, Irune underscored the company’s efforts to integrate solar, wind, geothermal, and hydro energy alongside oil extraction to support economic growth. He mentioned that Oando’s Clean Energy Division is involved in various projects, such as transportation, solar energy, waste-to-value, wind, and geothermal energy, in partnership with the Nigerian National Petroleum Company Limited (NNPC). Irune elaborated on the progress made in transportation projects due to Africa’s reliance on logistics for economic activities.
Involved in solar energy, waste-to-value projects, wind, and geothermal energy, one of our advanced projects is the electric vehicle initiative with the Lagos state government, aiming to deploy 100 buses after completing the pilot phase. Emphasizing ecosystem development, local capacity building, and knowledge transfer, we believe in contributing to these areas.
It is crucial to establish a foundation that enables us to explore renewable energy sources and invest capital to scale these projects effectively. Michelle Pflueger, Director of Deepwater and Production Sharing Contract (PSCs) at Chevron Nigeria and Mid-Africa Business, has emphasized the need for genuine stakeholder collaboration in the Nigerian oil and gas industry to foster sector growth.
Pflueger highlighted the necessity of partnerships to leverage Nigeria’s abundant oil and gas reserves, human capital, and investments for the benefit of the country, industry operators, and all stakeholders involved. She stressed the importance of stability, security, skilled local workforce, technological contributions from business partners, and service providers in the Nigerian oil and gas sector.
Pflueger emphasized the significance of collaboration between independent producers and International Oil Companies (IOCs) to address challenges across different segments of the energy industry, from deepwater to near-shore operations and the ongoing energy transition. She reiterated the need for a collective effort to enhance profitability and growth opportunities for all stakeholders through genuine collaboration and a shared commitment to expanding the industry collectively.
