Business a.m. Reporter
A speedier process in the divestment of oil assets in Nigeria has huge potential of raising the country’s oil production, says Roger Brown, the chief executive of independent oil company, Seplat Energy Plc.
Brown, who leads the company quoted on both the Nigerian and London Stock Exchanges, said the country’s sub-surface potentials could be largely optimised and oil/gas production levels increased if divestment and other related deals are expedited.
Contributing to a panel session on “Defining the Regulatory Frameworks Required to Support the Capabilities of Independents and Incentivise Growth” during the 2024 NOG Energy Week Conference & Exhibition in Abuja, recently, Brown said success of Nigerian independent energy companies will benefit Nigeria through oil revenues and the development of a domestic gas-to-power industry, thus helping to fund expansion into renewable energy to help Nigeria increase energy access and unlock its entrepreneurial population by providing reliable and affordable energy in accordance with the UN Sustainable Development Goals.
“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, because the assets they’re acquiring will doubtless need future development,” Brown explained.
He added that indigenous companies must commit to working with communities to maintain or increase Nigerian content, as Seplat Energy has been doing for many years.
On Nigeria’s energy aspirations, the Seplat CEO said the independents will play a key role in realising the aspirations of the “Decade of Gas”, noting that a strong governance framework is needed to support bankability of private sector direct participation/investment in this space.
The country has set its sight on ending small-scale generation and getting households and businesses onto a reliable national grid that uses its gas resources, lowers the cost of electricity and allows renewable energy to be developed and connected into a nationwide grid as its biggest decarbonisation priority.
Brown emphasised that Seplat Energy remains committed to ending routine flaring by the middle of next year and urged all other producers to make this a priority.
According to him, Seplat Energy’s new ANOH gas plant can supply enough gas to support more than 1GW electricity on the grid, noting that this can displace hundreds of thousands of home generators, thus reducing the cost of electricity and hopefully getting rid of expensive and highly polluting generators.
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