THE Federal Government has said that the implementation of the newly enacted Petroleum Industry Act (PIA) will boost the oil production capacity of Nigeria by about 317 per cent to four million barrels per day (bpd) from the current level of 1.2 million bpd.
Disclosing this in his keynote speech at the 2021 Seplat Energy Summit in Abuja yesterday, Minister of State for Petroleum Resources, Chief Timipre Sylva, stated that this would enable the oil and gas sector to contribute more to the economy.
Sylva also said that the government has rejected a single pathway concept to energy transition and net-zero carbon, explaining that energy transition is a process, not an instant destination.
He stated: “The PIA 2021 will undoubtedly assist in harnessing Nigeria’s potential to achieve its plan of increasing oil production to 4mb/d and oil reserves from 37bbls to 40bbls, while also drawing on the country’s estimated 600TCF of natural gas reserves to provide clean and efficient energy.
“These resources will be crucial in supplying world markets with a broad portfolio of energy options, as well as supporting the global endeavour to alleviate energy poverty as envisioned in the United Nations’ Sustainable Development Goal 7″.
According to the minister, Nigeria will continue to explore and invest in the development of hydrocarbon resources while pushing for the use of gas as a transition fuel. He explained that gas would be central to Nigeria’s plan for the energy transition.
“First is the focus on gas. For us, this is at the heart of the energy transition and represents the first step in the journey to renewables, away from oil. Already, we have declared that gas is our transition fuel, and also represents a destination fuel, as we envisage that it will be part of our energy mix by 2050, given the vast resources that can be commercialised and utilized,” he added.
Meanwhile, the chairman of Seplat Energy Plc, Dr ABC Orjiako, said that the company has set 2024 as the target to end gas flaring in all of its operations.
He stated: “Seplat Energy delivers over 50 per cent of gas supply in Nigeria. Seplat is to remove gas flares by 2024. Our plan is to replace all of the wood we use in homes with the use of Liquified Petroleum Gas which is a cleaner energy.”
