ENERGY TRANSITION: GOOD REGULATORY FRAMEWORK KEY TO EXPANDING FORTUNES OF NIGERIA’S OIL AND GAS INDUSTRY- CHEVRON MD
The Chairman and Managing Director of Chevron Nigeria Limited , Mr. Rick Kennedy has affirmed that a good regulatory framework is key to expanding the fortunes of Nigeria’s oil and gas industry while enabling the transition to energy solutions of the future.
Rick Kennedy stated this while delivering a special industry goodwill message at the Association of Energy Correspondents of Nigeria (NAEC) Strategic International Conference in Lagos with the theme “Energy Transition, PIA, Petroleum Pricing and the Way Forward for the Downstream Sector”
The Managing director who was represented by the Mr. Victor Anyaegbudike, Manager, Communications ,Chevron Nigeria maintained that for Nigeria to sustain economic growth which has raised the quality of life for millions of people around the world, what is needed is a competitive environment to produce energy that is affordable, reliable and ever cleaner to enable human progress.
He noted that the global energy landscape has experienced substantial changes over the years, with expectations of more changes in the future, but nonetheless ,Nigeria is endowed with the necessary requirements for a growing and sustainable energy industry which includes large hydrocarbon reserves (including abundant gas resources), a growing demand for energy, and a large population of young, talented human resources.
According to him ‘’The passage and signing into law of the Petroleum Industry Act (“PIA”) is a major milestone in the reform of Nigeria’s oil and gas industry geared towards attracting investment and growth.’’
‘’Chevron recognizes the opportunity which the PIA represents, and we fully support the necessary collaboration between the regulators, the Nigerian National Petroleum Company Limited and stakeholders in the industry that will enable the success of the Nigerian oil and gas industry.As we advance in the PIA implementation, we believe that natural gas is an important fuel, which will play a critical role as the world seeks to lower its overall carbon footprint. Recently, Nigeria launched its ‘Decade of Gas’ initiative, under the theme ‘Towards a gas-powered economy by 2030,’ that will work with the National Gas Expansion Program in increasing gas production. He noted
He said that CNL supports this key step towards helping utilize Nigeria’s vast natural gas resources for the benefit of the nation. We have reduced routine gas flaring by 95% in the past 10 years and we remain the highest supplier of high-quality gas to the domestic market among the international oil companies (IOCs).
He assured that CNL will continue to enhance gas utilization in Nigeria with focus on critical areas such as: Power generation to stimulate the growth of the manufacturing sector of the economy – signing of Gas Sale and Aggregation Agreements (“GSAAs”) with Egbin Power Plc and Olorunsogo Generation Company Limited, Fertilizers for local consumption to support large scale agriculture for export and local consumption – signing of a GSAA with Dangote Fertilizer Limited.
He said that Chevron remains committed to supporting programmes by professional bodies such as NAEC and the wider sphere of the journalism profession in Nigeria. ‘’We pioneered the Advanced Writing and Reporting Skills (AWARES) programme implemented in partnership with the Pan Atlantic University, Lagos. This programme has benefitted about 120 journalists since its inception in 2014. I encourage NAEC members to continue to demonstrate the ethos of your profession and ensure objectivity in reporting on the oil and gas industry in Nigeria. ‘’
Also,’’Chevron has been making significant investments in Nigeria for over 60 years. We believe that the future of energy is lower carbon and that with the right policies and regulatory framework, the enormous potential of Nigeria’s oil and gas industry can yield even greater benefits while enabling the transition to affordable, reliable, secure and ever-cleaner sources of energy.