Wabote: Global Energy Transition Growth Opportunity for Nigeria’s Oil, Gas Industry

Emmanuel Addeh

The ongoing disruptions in the international energy industry present a unique opportunity for the Nigerian oil and gas industry to attract investments and serve as one of the leading hubs to meet global energy needs.

The Executive Secretary of the Nigeria Content Development and Monitoring Board, (NCDMB) Simbi Wabote stated this recently in a lecture he delivered at the Society of Petroleum Engineers – Oloibiri Lecture Series and Energy Forum (SPE – OLEF) 2022 held in Abuja.

A statement from the organisation said that Wabote spoke on the theme, “Global Energy Transition: Implications on Future Investments in the Nigerian Oil and Gas Industry.” 

It quoted him as maintaining that the clamour by developed countries to reduce carbon emissions through cutting the utilisation of fossil fuels is because those nations have run out of hydrocarbon reserves.

Wabote pointed out that the outcome of energy transitions has always been the redistribution of the constituents in the energy mix rather than the outright swap of one form of energy for another.

He said the rush to move the world away from fossil fuels has resulted in first world countries shifting funding away from the development of hydrocarbons towards renewable energy, and energy shortage.

According to him, this has caused a decline in the supply of hydrocarbons due to lack of investments, because the pace of the shift to renewable energies is unable to meet world energy demand. 

Bearing in mind the technological capability and natural endowments as key drivers to the energy mix, he observed that the divestments have resulted in the emergence of indigenous companies playing major roles in exploration and production activities.

To that extent, the NCDMB boss said that that companies like Aiteo, First E&P, Eroton and others have acquired assets and are now responsible for the production of about 15 per cent of the nation’s oil and more than 60 per cent of domestic gas.

He decried the divestment of the IOCs and their reluctance to make further investment in oil and gas which has resulted in the repatriation of capital out of Nigeria. 

Wabote lamented that this has stifled the nation’s economy of the much-needed foreign exchange and funds used as loans to acquire oil and gas assets instead of developing new production assets. 

He also hinted that energy shortage has provided a huge opportunity for the Nigerian oil and gas industry by diversifying oil and gas energy hubs even as it works on adding renewables to the global energy mix to ensure energy security.