Crude Oil: In a stark revelation, Simbi Kesiye Wabote, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), cautioned that Nigeria might be compelled to import crude oil for its refineries unless urgent efforts are made to boost the current low production levels. Wabote expressed this concern at the Nigerian Association of Petroleum Explorationist’s (NAPE’s) 41st annual international conference, urging stakeholders to address the challenges hindering the nation’s oil and gas sector.
Speaking at the conference themed “Repositioning the Oil and Gas Industry for Future Energy Dynamics” in Lagos, Wabote emphasized the need to reverse Nigeria’s low production of crude oil and gas despite its abundant reserves. He warned against the possibility of replacing refined petroleum product imports with crude oil imports for local refineries, emphasizing the importance of increasing production to sustain the ongoing efforts to revamp and commission refineries.
Wabote acknowledged Nigeria’s substantial oil reserves, approximately 37 billion barrels, and urged petroleum explorationists to contribute to discovering, evaluating, and establishing the reliability and sustainability of oil and gas reserves. He underscored the critical role of gas, noting the country’s 208 trillion cubic feet of proven gas reserves and 600 trillion cubic feet of unproven reserves. Wabote urged explorationists to focus on confirming recoverable volumes from unproven reserves and developing proven reserves, emphasizing that gas is no longer a transitional but a destination fuel.
In recognition of Wabote’s contributions, he received an award at the conference in appreciation of delivering a goodwill message. He commended the federal government’s commitment to sustaining gains in the oil and gas industry and assured support for initiatives promoting local investments and job creation.
Meanwhile, Mallam Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), raised concerns about the cost of renewable energy potentially hindering its adoption in Nigeria and other economically constrained African countries. Kyari, represented by Oritsemeyiwa Eyesan, the Executive Vice President (Upstream) at NNPC, highlighted the financial barrier to adopting clean energy and emphasized the need to address the affordability challenge.
Kyari acknowledged the role of renewables in mitigating climate change and reducing dependency on finite resources. However, he outlined challenges such as intermittency, reliability, and predictability associated with renewable energy technologies. Kyari urged companies to develop a balanced complementary energy portfolio, leveraging innovation and technology to harness various energy sources.
In his keynote address, Tunde Afolabi, Chairman and CEO of Amni International Petroleum Development Company Limited, stressed the importance of repositioning Nigeria’s oil and gas industry to meet future demand and drive economic growth. He called for coordinated efforts to address security issues, improve fiscal competitiveness, and strategically diversify the energy portfolio.
Elohor Aiboni, Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCO), emphasized the vulnerability of Nigeria’s dependency on fossil fuel for economic growth. Aiboni highlighted the urgency to close the energy gap, embrace technology in oil and gas exploration, and incorporate renewables to achieve carbon neutrality targets by 2060.
The conference provided a platform for industry experts to discuss critical issues and strategize the repositioning of Nigeria’s oil and gas sector for future energy dynamics.