TotalEnergies EP Nigeria Limited, a subsidiary of TotalEnergies, has said the implementation of the Petroleum Industry Act must be accelerated as the window for investments in fossil fuels is narrowing.
The Managing Director, TotalEnergies EP Nigeria Limited, Mr Mike Sangster, said this on Monday at the management session of the Nigerian Association of Petroleum Explorationists in Lagos.
Sangster, who was represented by the company’s Deputy Managing Director, Deepwater, Mr Victor Bandele, described the PIA as the most significant legislation to impact the oil and gas landscape due to its ramifications on the industry and country at large.
He said, “The Act is expected to eliminate regulatory/legal hurdles, attract critical investments, unlock financial resources, accelerate local content development, and enhance employment, among other opportunities.
“The fact is the PIA implementation must be accelerated. The window for investments into fossil fuels is narrowing. Very few years would remain for access to urgent funds to develop the Nigerian petroleum industry to launch it into that era of energy transition and prosperity that the world envisions.”
To unlock and maximise the potential of the PIA, he highlighted the need for the political will for a consistent implementation of the provisions of the law and continuous engagement and consultations with all stakeholders for the unflinching support necessary for the success of the law.
“Too frequent amendments will foster policy instability and instigate apprehension among investors. Too many litigations against oil companies threaten operational stability and induce long-term uncertainties. Insecurity is a huge challenge,” Sangster said.
He stressed the need for proper/transparent management of the transition from the now-defunct regulatory agencies to the new ones.
According to him, the case for investments envisaged by the PIA still has to be made in view of climate concerns and the attention on energy transition.
He said, “We must appreciate that although fossil fuels will remain the main source of energy for the world for some time to come, the march to renewable energies is irreversible.
“Nigeria may not have much choice over the speed and velocity of the energy transition. It is therefore very urgent that the country takes maximum advantage of the deregulation of the industry and other welcome provisions of the PIA to exploit her petroleum resources, build critical infrastructure and position competitively in the energy transition.”
Sangster noted that the President, Major General Muhammadu Buhari (retd.), had outlined Nigeria’s path to net zero in consonance with the goals of the Paris Agreement.
According to him, the company is currently working towards bringing the Ikike project on stream in 2022.
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Publish date : 2021-11-17 23:24:29