Uche Cecil Izuora
The managing director of TotalEnergies Exploration and Production Nigeria Limited, Mike Sangster, has advocated for accelerated implementation of the Petroleum Industry Act, PIA, as the window for investments into fossil fuels is fast narrowing.
Sangster, said that Nigeria may not have much choice over the speed and velocity of the energy transition and as such it has become 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, in his remarks at the management session of the Nigeria Association of Petroleum Explorationists, NAPE, conference themed, PIA: IMPLICATION FOR OIL AND GAS INDUSTRY AND ENERGY TRANSITION IN NIGERIA, stated that President Muhammadu Buhari has outlined Nigeria’s path to net zero in consonance with the goals of the Paris Agreement.
According to him, 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.”
However, to unlock and maximize the potential of the PIA, Sangster said government must demonstrate political will for a consistent implementation of the provisions of the Law and continuously engage and consult with all stakeholders for the unflinching support necessary for the success of the Law.
He also warned that too frequent amendments will foster policy instability and instigate apprehension among investors, while too many litigations against oil companies would threaten operational stability and induce long term uncertainties.
The TotalEnergies MD equally harped on insecurity which he described as a huge challenge.
He further called for proper and transparent management of the transition from the now defunct agencies to the new ones.
Sangster described the Act as invariably the most significant legislation to impact the oil and gas landscape due to its ramifications on the industry and country at large.
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, he said.
He advised that the case for investments envisaged by the PIA still has to be made in view of climate concerns and the attention on energy transition, adding, “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.”
