Seplat Energy PLC has stated that Nigeria’s sub-surface potentials could be significantly optimised and oil and gas production levels increased if divestment and other related deals are expedited.
The CEO of Seplat Energy, Roger Brown, made these remarks at the 2024 NOG Energy Week Conference & Exhibition held recently in Abuja.
During a panel session titled ‘Defining the Regulatory Frameworks Required to Support the Capabilities of Independents and Incentivise Growth,’ Brown highlighted that the success of Nigerian independent energy companies would benefit the country through increased oil revenues and the development of a domestic gas-to-power industry.
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This progress would help fund expansion into renewable energy, increasing energy access and unlocking Nigeria’s entrepreneurial potential by providing reliable and affordable energy in alignment with the UN Sustainable Development Goals.
IOC Expectations for Local Players
Brown noted, “International Oil Companies (IOCs) will look to divest to credible local players, those with high levels of governance and accountability in their ESG efforts. Indigenous players also need strong balance sheets and credibility in international financial markets, as the assets they’re acquiring will require future development. Indigenous companies must also commit to working with communities to maintain or increase Nigerian content, as Seplat Energy has been doing for many years.”
Optimising Nigeria’s Sub-Surface Potentials
Addressing the country’s energy aspirations, Brown emphasised the crucial role of independent companies in achieving the goals of the “Decade of Gas.”
He underscored the need for a robust governance framework to support the bankability of private sector direct participation and investment in this space.
“Nigeria’s biggest decarbonisation priority is to end small-scale generation and get households and businesses onto a reliable national grid that utilises our gas resources. This will lower the cost of electricity and allow renewable energy to be developed and connected to a nationwide grid,” he said.
Seplat Energy is committed to ending routine flaring by the middle of next year and urges all other producers to prioritise this goal. The company’s new ANOH gas plant can supply enough gas to support more than 1GW of electricity on the grid. This can displace hundreds of thousands of home generators, reducing the cost of electricity and eliminating these expensive and highly polluting generators, which significantly harm Nigeria’s economy and contribute to carbon emissions.
