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Port Harcourt refinery to start before end of 2023, says NNPC GMD

Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Limited, has promised that the Port Harcourt refinery, located in Rivers State, Nigeria, will kick off production of fuel and other refinery activities before the end of the year.

In an exclusive interview with Arise Television’s “The Morning Show” on Thursday, Kyari said that the reason why the Port Harcourt refinery is behind schedule is because of disruptions in the global supply value chain that were created by the Russia-Ukraine war and are not peculiar to Nigeria.

“Of course there is work going on in the Warri refinery that is already in earnest. For the Kaduna refinery, that is a different situation, and we have awarded the turnaround maintenance for the Kaduna refinery, which is already in place,” he said about the other two federal government refineries.

Read also:Nigerians groan as NNPC, marketers raise petrol price

He admitted that with the Dangote Refinery, local refineries whose turnaround maintenance is nearing completion, and a couple of modular refineries, the country should be expecting a surplus of petroleum products by the end of next year.

“So ultimately, what this means is that we are going to have a surplus of product in the country by the end of next year,” he noted.

He reminded everyone of the projected contribution of the Dangote refinery once commercial production kicks off sometime in July or August.

“Once that happens, you would have a significant volume of PMS—once that happens, we fix our refineries and other modular refineries, and this country will be the hub of petroleum refineries on the continent and a reversal of market choice,” he said.

Earlier in the interview, the Group Managing Director debunked popular views, claiming that once the country starts a whole-scale domestic refinery of petroleum products, the price of fuel and others will come down drastically.

“There is this misconception that once you start to refine locally, the price is going to crash to half the price; that is not correct,” he said. “The distinction between domestic pricing and import pricing is simply two things.”

He listed two major instantaneous benefits outside of this price crash that will come to the country. According to Kyari, the security of the supply of products and businesses around refinery activities will improve.

He said, “First, it gives you security of supply—supply is by your door. You don’t need 14 days to move products from Europe into Nigeria. That goes away; you have access to this product because there’s no disruption in the supply chain. You have a short time to regulate and move around, so it gives you security of supply. This is the number one thing it does.

“Secondly, it creates a market around it for employment, taxes, and so many other benefits that will come to the country.”

He corrected another popular misconception around the pricing of refined petroleum products, saying that the prices of refined products, regardless of area of production, are determined by the international market.

“Therefore, at the gate of your refinery, you are pricing it as if you are getting it from Rotterdam or Amsterdam; that means the conversion of FX that determines the market value is determined by the international market,” he said.

“But there will be a delta; that delta is the cost of freight that builds up in your country. You will see a difference in price as a result of the freight difference,” he added.

News Power

Hungary says Russia to deliver more extra gas

Hungary said Wednesday that Russian energy giant Gazprom will further increase natural gas deliveries to the EU member in September and October.

The announcement by Hungarian Foreign Minister Peter Szijjarto comes as Moscow has reduced or halted deliveries to most European nations which have slapped sanctions on Russia over its invasion of Ukraine, sending both gas and energy prices soaring.

Following a July visit to Moscow by Szijjarto, Gazprom supplied Hungary with an additional volume of 2.6 million cubic metres per day in August “above the already contracted quantities”.

Now “an agreement has been reached” with Gazprom for additional supplies in September and October, said Szijjarto in Prague after a meeting of EU counterparts.

The additional volume “is now increased to 5.8 million cubic metres (per day) from September 1st,” he said in a video posted on his Facebook page.

Like in August, the gas will arrive via the TurkStream pipeline which passes through Turkey, Bulgaria, and Serbia.

The increase further bolsters Hungary’s energy supply security and means that Hungary will not have to introduce supply restrictions due to lack of gas, he added.

“Hungary’s energy supply is safe,” said government spokesperson Zoltan Kovacs in a Twitter message after Wednesday’s announcement.

The agreement follows the start Wednesday by Gazprom of a three-day suspension of gas deliveries to Germany via a major pipeline in the latest in a series of halts or reductions of supplies to European countries.

Prices have soared and EU nations are adopting measures to reduce gas consumption amid concerns of shortages this coming winter that could force rationing supplies to industrial customers.

Since Russia’s invasion of Ukraine Budapest has sought to hold a broadly neutral stance amid accusations by some EU allies of a pro-Russian tilt.

Hungary, which largely depends on Russian oil and gas, has dismissed the idea of any EU sanctions on Russian gas.

It also secured an exemption from EU sanctions on Russian crude oil imports via pipelines after Prime Minister Viktor Orban said it would be like a “nuclear bomb dropped on the economy”.

News Uncategorized

Russia has halted gas deliveries to Germany

Russia has halted gas deliveries to Germany via a key pipeline for an indefinite period after saying Friday it had found problems in a key piece of equipment, a development that will worsen Europe’s energy crisis.

Russian gas giant Gazprom said Friday that the Nord Stream pipeline due to reopen at the weekend would remain shut until a turbine is repaired.

In a statement, Gazprom indicated it had discovered “oil leaks” in a turbine during a planned three-day maintenance operation.

Gazprom added that “until it is repaired… the transport of gas via Nord Stream is completely suspended”.

Resumption of deliveries via the pipeline which runs from near St Petersburg to Germany under the Baltic Sea had been due to resume on Saturday.

Gazprom said it had discovered the problems while carrying out maintenance with representatives of Siemens, which manufactured the turbine in a compressor station that pushes gas through the pipeline.

On its Telegram page, it published a picture of cables covered in a brown liquid.

Earlier in the day, the Kremlin warned the future operation of the Nord Stream pipeline, one of Gazprom’s major supply routes, was at risk due to a lack of spare parts.

“There are no technical reserves, only one turbine is working,” Kremlin spokesman Dmitry Peskov told reporters.

“So the reliability of the operation, of the whole system, is at risk,” he said, adding that it was “not through the fault” of Russian energy giant Gazprom.

Following the imposition of economic sanctions over the Kremlin’s invasion of Ukraine, Russia has reduced or halted supplies to different European nations, causing energy prices to soar.

The Kremlin has blamed the reduction of supplies via Nord Stream on European sanctions which it says have blocked the return of a Siemens turbine that had been undergoing repairs in Canada.

Germany, which is where the turbine is located now, has said Moscow is blocking the return of the critical piece of equipment.

Berlin has previously accused Moscow of using energy as a weapon.

The announcement by Gazprom comes the same day as the G7 nations said they would work to quickly implement a price cap on Russian oil exports, a move which would starve the Kremlin of critical revenue for its war effort.

Gazprom also announced the suspension of gas supplies to France’s main provider Engie from Thursday after it failed to pay for all deliveries made in July.

– ‘Much better position’ –
As winter approaches, European nations have been seeking to completely fill their gas reserves, secure alternative supplies, and put into place plans to reduce consumption.

A long-term halt to Russian gas supplies would complicate efforts by some nations to avoid shortages and rationing, however.

Germany said Friday its gas supplies were secure despite the halt to deliveries via Nord Stream.

“The situation on the gas market is tense, but the security of supply is guaranteed,” a spokeswoman for the economy ministry said in a statement.

The spokeswoman did not comment on the “substance” of Gazprom’s announcement earlier Friday but said Germany had “already seen Russia’s unreliability in the past few weeks”.

German officials have in recent times struck a more positive tone about the coming winter.

Before the latest shutdown, Chancellor Olaf Scholz said Germany was now “in a much better position” in terms of energy security, having achieved its gas storage targets far sooner than expected.

Europe as a whole has also been pushing ahead with filling its gas storage tanks, while fears over throttled supplies have driven companies to slash their energy usage.

Germany’s industry consumed 21.3 percent less gas in July than the average for the month from 2018 to 2021, said the Federal Network Agency.

Agency chief Klaus Mueller has said such pre-emptive action “could save Germany from a gas emergency this winter”.

Europe as a bloc meanwhile has been preparing to take emergency action to reform the electricity market in order to bring galloping prices under control.

Fear of shortages of natural gas has driven futures contracts for electricity in France and Germany to record levels.

European consumers are also bracing for huge power bills as utilities pass on their higher energy costs.

News

Osinbajo: Why Nigeria should benefit more from its gas reserves

The use of gas as a transition fuel will not only help in stemming deforestation but advance Nigeria’s broader development goals, the Vice President, Prof. Yemi Osinbajo has said.

Stating that the country has one of the largest gas reserves in the world, he believes other developing countries will also benefit from the adoption of gas as a transition fuel.

Osinbajo stated this on Tuesday night when he received the U.S. Special Presidential Envoy on Climate Change, John Kerry, at the Presidential Villa in Abuja.

Kerry, who was on a working visit to Nigeria, had met with President Muhammadu Buhari prior to his meeting with Professor Osinbajo, the Vice President’s spokesman, Laolu Akande, said in a statement on Wednesday.

The Vice President, at the meeting with Kerry and the US delegation, highlighted the need for Nigeria to continue the exploration and use of gas as a way of arresting deforestation, transiting away from dirtier fuels like diesel, kerosene, and petrol, while at the same time ensuring that the country has the necessary energy baseload for industrialisation.

He pointed out that Nigeria has one of the largest gas reserves in the world and should benefit from its exploitation, and highlighted the significance of Nigeria’s Energy Transition Plan, which is the first in Africa.

Professor Osinbajo had discussed the Energy Transition Plan during his recent visit to Washington D.C., where he met with his American counterpart, Kamala Harris, at the White House, among other top US government officials.

Before the recent US trip, the Federal Government had launched the Energy Transition Plan at a global virtual event.

In addition to a review of the Energy Transition Plan, including a discussion about its implementation, both the Vice President and Kerry also discussed the issues of renewable energy sources and the global transition.

In his remarks, the US envoy praised the plan and the efforts already being made in Nigeria to step up the use of renewables, especially solar and hydropower, as major components of the energy mix.

While acknowledging that Nigeria ought to benefit from its gas reserves, Kerry urged an even more rapid adoption of renewables, especially electric vehicles which are certainly the next wave in auto manufacturing.

He observed that the technology of renewables keeps improving daily, adding that batteries are already in production which last far more than those that are now on the market.

Upon a request by the Vice President, the Special Envoy promised to assist Nigeria with the necessary expertise to scientifically determine the most appropriate energy mix that would move the country toward the goal of energy for all by 2030 and net zero carbon emissions by 2060, without compromising the country’s energy security.

He also affirmed the readiness of the US government to assist Nigeria in a bilateral partnership to realise its climate change adaptation and resilience capacity, thereby consolidating the nation’s place as a model for other countries on the planet.

Kerry said he looked forward to Nigeria presenting an inspiring position, which would no doubt attract all necessary global support at the upcoming COP 27 in Egypt later in the year.

He was accompanied by other US officials, including the American Ambassador to Nigeria, Ms Mary Beth Leonard.

News Power

NNPC, TotalEnergies commission model school project in Makurdi

The Nigerian National Petroleum Company Limited, NNPCL, TotalEnergies, operators of OML 130 and partners,SAPETRO, CNOOC & PRIME 130, have constructed and commissioned a model secondary school project at Government College, Makurdi in Benue State as part of their corporate social responsibilities to different communities in Nigeria.

The two floors model secondary school sits on 2,500m2 and is expected to provide the students access to modern-day learning and science experimentation tools.

The school facility is powered by an integrated power supply system consisting of a 35kva solar power generating system, and one 50kva soundproof generator to ensure continuous power supply.

In his welcome address, the Chief Upstream Investment Officer of the NNPC Upstream Investment Management Services, Mr. Bala Wunti, who was represented by Mrs Bunmi Lawson said that the project was part of efforts to mitigate various identified gaps.

He noted that the projects aligned with sustainable development goals, adding that the partners would continue to champion the implementation of SDGs.

“These projects were borne out of the need to mitigate the various identified gaps in line with the relevant Sustainable Development Goals (SDGs). We will continue to consistently champion the implementation of Sustainable Community Development projects that will positively impact the lives of the citizens of this Country.”

Managing Director of TotalEnergies EP Nigeria Limited, Mike Sangster, who was represented by Mr. Lucky Deekor, revealed that in line with his company’s commitment to promoting youth education, TotalEnergies believe that the school project will provide students access to modern-day learning, science experimentation tools and ignite their interest in the study of the STEM courses.

Giving an overview of the project, Sangster said that the school project includes a well-designed administrative block with furnished offices, a sick bay, a first aid room and storage facilities.

“The project we are commissioning today includes all the necessary components for a modern school. These include a well-designed administrative block with 4 fully furnished offices, a sick bay, and a first aid room with all its appurtenances and storage facilities.

“Among other great features, the main school block has 2 floors, 10 offices for teachers and technical rooms, 12 furnished classrooms, 5 cutting-edge science laboratories, two libraries and 1 fully equipped ICT laboratory.

The principal of Government College, Makurdi, Mrs. Aumbur Agena, thanked Total Energies and all other partners for their support in the building of the facility, adding that the intervention to build the facility will provide a better learning environment for the students.

“I thank NNPCL, TotalEnergies and their partners for finding the school worthy to be part of the CSR project. Their commitment to the completion of the project is commendable. The project will solve one of our big problems: providing a better learning environment for the students. I also appeal to the government of Benue state to provide us with a school bus for easy student commute.”

News Production

2023 budget threatened, as Nigeria’s crude oil output drops 7.4% to 1.37mb/d

Nigeria’s dwindling average oil output, including condensate, dropped Year-on-Year, YoY, by 7.4 per cent to 1.37 million barrels per day, mb/d in the first 10 months (January – October) 2022, from 1.48 mb/d in the corresponding period of 2021.

This showed a shortfall of 317,940 barrels when juxtaposed against the 1.69 mb/d which the 2023 budget was based on at $70 per barrel.

However, on Month-on-Month, MoM, the average oil output increased by 7.8 per cent to 1.23 mb/d in October 2022, from 1.14 mb/d, recorded in the preceding month of September 2022.

Oil theft, others

The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, which disclosed this in its monthly Oil Production Status Reports, obtained by Vanguard, weekend, did not specify the cause of the trend.

But checks by Vanguard, yesterday, attributed it to prolonged pipeline vandalism, oil theft, and illegal refining in the Niger Delta.

It indicated that pipeline vandalism, oil theft and illegal refining would still continue next year, despite the efforts of stakeholders, especially the government and oil companies, to tackle them.

Case of Shell

In its briefing notes obtained by Vanguard, Shell, the biggest International Oil Company, IoC, in Nigeria, stated: “Shell companies in Nigeria have a track record of strong production. But in 2021, the combined production from the SPDC JV and SNEPCo (Bonga) fell to 493,000 barrels of oil equivalent per day from 614,000 in 2020.

“The SPDC JV produced 383,000 barrels of oil equivalent in 2021, compared with 497,000 barrels of oil equivalent in 2020. The fall in output was largely as a result of curtailed oil production because of heightened security issues, such as crude oil theft and illegal oil refining.

”Production numbers were also down as a result of divestment action, including the sale of SPDC’s 30% interest in OML 17 for $533 million.

“In the last quarter of 2021, crude oil theft from pipelines across the region increased ostensibly as a result of rising oil prices, which made the activity more profitable. Security risks have heightened and production in some areas has been put on hold.

”The situation is impacting operators across the Niger Delta. The Nigerian National Petroleum Corporation, NNPC, has reported that crude thefts in 2021 reached 200,000 barrels per day – a quarter of onshore production.”

Oil market

The checks also showed that although the Organisation of Petroleum Exporting Countries, OPEC, interventions would make a positive impact, the global oil market would continue to record instability in 2023 and beyond, thereby impacting negatively the economy of nations, including Nigeria.

In its October 2022 Monthly Oil Market Report, MOMR, obtained by Vanguard, OPEC painted a picture of an uncertain oil market when it stated: “For 2023, world oil demand growth is revised down to stand at about 2.3 mb/d.

“Uncertainty about the geopolitical situation remains high, and there is potential for further US shale liquid production.”

Experts

However, commenting on the development, the National President of Oil and Gas Service providers Association of Nigeria, OGSPAN, Colman Obasi, said: “The government and other stakeholders have not done enough to address the various issues currently affecting the nation’s oil production.

”A lot can still be done, including the use of modern technologies, to monitor the nation’s oil and gas assets in the Niger Delta.”

Obasi, who attributed the vices partly to massive unemployment and desperation on the part of the youth to make a living, said: “If concerted efforts were made to industrialise Niger Delta, there would probably be no crude oil theft and devastation of the region. Oil theft has been with us for decades and seems to be gaining momentum.”

Similarly, Executive Director, Emmanuel Egbogah Foundation, Prof. Wunmi Iledare, said: “It seems the price of crude is demand determined. The likelihood to attain and sustain that output in 2023 is less likely. At best, that output may even be the potential because of insecurity, divestment, and onshore basin maturity.”

News

Oil, gas data businesses to hit $145.9 billion

Data business in the oil and gas sector could hit as much as $145.9 billion by 2032, rising at a compound yearly growth rate of 16.5 per cent for the next decade.

This is coming despite the divestment and push from fossil fuel. The current market value of data in the oil and gas sector stands at $31.6 billion.

The report released by Future Market Insights and published by WorldOil, noted that operational efficiency and performance improvement increased the popularity of real-time analysis and predictive analytics solutions. It also increased awareness among end-users. Those are all considered major growth factors for the data business in the oil & gas industry.

The report revealed that the outbreak of Covid-19 triggered big data analytics in oil and gas operations allowing engineers and researchers to study data remotely.

It also noted that data recording sensors have recently become a recent introduction to the industry for various features such as discovery, drilling, production, refining, and transportation, where big data has become an essential part of data analysis, which is expected to be a driving factor for the demand for data business in oil & gas.

Big data also allow for better asset management, operations, manufacturing, and worker safety. However, big data analytics continue to confront hurdles owing to a lack of corporate backing and awareness of the technology; data and a grasp of the problem’s complexity are key stumbling blocks to the growth of the data business in the oil & gas market share.

The precision and efficiency of big data have led to its acceptance in the oil and gas industry.

It helps the oil and gas industry improve the performance of drilling and production activities. It improves the company’s efficiency and keeps track of the oil extraction activities in real-time.

It is offered in software, hardware, and cloud service platforms to deliver the best data collection service to oil and gas organisations.

Furthermore, advances in data gathering allow for the incorporation of machine learning and artificial intelligence (AI) technologies that safeguard data by allowing for secure data storage and collection. It aids industries in increasing productivity and increasing yearly revenues, hence increasing global demand for data business in oil & gas.

As per the data business in oil & gas market study, manufacturers all over the world are producing big high-quality data in oil and gas services that reduce data inconsistencies, resulting in data business in oil & gas market growth. As a result, these variables may contribute to the rise of big data in the oil and gas business.

However, a lack of public understanding of the numerous benefits of big data in oil and gas solutions is expected to stymie the data business in oil & gas market size expansion.

The oil and gas industry’s increasing output and drilling performance is a major data business driver in the oil & gas market. Other factors driving market expansion include the need to improve decision-making and operational and business performance, as well as volatile oil prices and growing competition in the oil and gas industry.

News

Niger Delta minister says region contributes 80% of nation’s resources

Minister of State for Niger Delta Affairs, Sen. Omotayo Alasoadura, has said the region contributes over 80 per cent of the nation’s resources and about 95 per cent of foreign exchange earnings.

Alasoadura, who stated this yesterday in Texas, United States of America (USA) while speaking on investment opportunities in the Niger Delta Region, told the audience that over 95 per cent of oil and gas activities in Nigeria take place in the Niger Delta.

According to the minister, the region is home to three refineries, a liquefied natural gas plant, a petrochemical complex, a steel plant and an aluminium smelting company and a large fertiliser company.

“Furthermore, the region hosts a number of oil-servicing companies, in addition to the oil majors operating in the area and some local oil exploration companies. It also has an Export Processing Zone and an Oil and Gas Free Zone. He added.

Alasoadura further disclosed that the region warehouses massive oil and gas deposits with average productivity of about 2.5 million barrels per day, including condensates.

“Today, the total recoverable reserves of oil and gas are estimated at about 34.5 billion barrels and 93.8 trillion cubic meters, respectively, he added.

He said the aim of the summit is to forge international economic cooperation for investment in the Niger Delta, adding that the summit will help to build institutional exchanges and promote foreign direct investments.

According to him, it is also an opportunity for Nigeria to explore avenues for the diversification of the economy as well as the provision of an effective bilateral opportunity between the private and public sectors of both nations.

With the summit, the minister noted that the nation stands a chance to attract investors and investments from the USA into the economy.

Source: Guardian 

News

Oil giant Shell strikes deal to buy power from ‘world’s largest offshore wind farm’

Shell said Wednesday it had signed a deal to purchase power from a development dubbed “the world’s largest offshore wind farm.”

The 15-year power purchase agreement relates to 240 megawatts from Dogger Bank C, the third and final phase of the 3.6 gigawatt Dogger Bank Wind Farm, which will be located in waters off the coast of northeast England.

The agreement builds upon a previous deal to purchase 480 MW from Dogger Bank A and B, meaning that its combined offtake will amount to 720 MW.

On Wednesday, Dogger Bank Wind Farm announced it had also agreed 15-year power purchase agreements for Dogger Bank C with Centrica Energy Marketing & Trading, SSE Energy Supply Limited and Danske Commodities.

“The commercial power agreements provide a route to sell the green energy generated by the third phase of the wind farm into the GB electricity market when it enters commercial operation,” it said.

Dogger Bank A and B represents a joint venture between Equinor, SSE Renewables and Eni, with the companies holding stakes of 40%, 40% and 20% respectively.

This month, it was announced Eni would also acquire a 20% stake in Dogger Bank C, with Equinor and SSE Renewables each holding on to a share of 40%. This deal is slated for completion in the first quarter of 2022.

“Once the three phases are complete, which is expected by March 2026, Dogger Bank will be the largest offshore wind farm in the world,” Dogger Bank Wind Farm says.

Despite making deals related to renewable energy, Shell remains a major player in oil and gas. It has pledged to become a net-zero emissions energy firm by 2050.

In February, the business confirmed its total oil production had peaked in 2019 and said it expected its total carbon emissions to have peaked in 2018, at 1.7 metric gigatons per year.

In a landmark ruling earlier this year, a Dutch court ordered Shell to take much more aggressive action to drive down its carbon emissions and reduce them by 45% by 2030 from 2019 levels.

The verdict was thought to be the first time in history a company has been legally obliged to align its policies with the 2015 Paris Agreement. Shell is appealing the ruling, a move that has been sharply criticized by climate activists.

In October, billionaire activist investor Dan Loeb called on the business to break up into multiple companies to strengthen its performance and market value.

Shell acknowledged Loeb’s letter to clients calling for the company to split, saying it “regularly reviews and evaluates the Company’s strategy with a focus on generating shareholder value. As part of this ongoing process, Shell welcomes open dialogue with all shareholders, including Third Point.”

More recently, in mid-November, Shell said it would move its head offices to the U.K. from the Netherlands, and ditch its dual share structure. Under these plans, the firm’s name would change from Royal Dutch Shell plc to Shell plc.

“The simplification will normalise our share structure under the tax and legal jurisdictions of a single country and make us more competitive,” Andrew Mackenzie, the company’s chair, said at the time.

Source: CNBC

Industry News

FG insists Nigeria on track towards investment in oil, gas sector

Projected to hit $53 trillion by 2025, the global Environmental Social and Governance (ESG) assets can provide leeway for most oil and gas projects in Nigeria, especially the private and public sector, to address inherent hindrances.

Across the world, investors are now shifting attention to ESG, applying the non-financial factors as part of the key analysis process to identify material risks and growth opportunities.

A report published by Bloomberg had noted that global ESG assets are on track to exceed $53 trillion by 2025, representing more than a third of the $140.5 trillion in projected total assets under management.

Just last month, the International Energy Agency (IEA) had called for an end to fossil fuel investment as part of an attempt to ensure net-zero ambition becomes a reality by 2050. Although stakeholders in the oil and gas sector have criticised the call, it, however, sent a negative signal to the industry, which has already witnessed about a five per cent reduction in investment due to the Covid-19 pandemic.

Nigeria, with elusive governance, regulatory and fiscal outlook has over $160 billion projects yet to see Final Investment Decisions in the upstream segment.

Across Africa, the African Refiner and Distributor Association (ARDA) puts needed funds for refinery upgrade alone at $15.7 billion while an additional $7.5 billion investment, inclusive of debt, equity, and grants, will be required to build clean cooking stoves and downstream infrastructure that are going to support the attainment of the UN Sustainable Development Goals (SDGs).

Business Development experts for Vitol Services Ltd, Richard Egan, and Guillaume Quigiver, noted that ESG creates a new opportunity for African countries to generate carbon credits.

According to them, Africa has the lowest cost of generating carbon credits in the world and as such, a case should be made for a framework whereby African carbon emissions submissions are accepted in the global marketplace, stressing “ESG brings new potential revenue streams that can be incorporated into a financing package.”

Financial experts have also stated that ESG considerations are currently driving shifts in lending policies for various financial institutions and under what terms they are willing to lend, adding that while several key financial institutions like the World Bank and several Export Credit Agencies (ECAs) have pledged to end support for fossil fuel projects, Asian ECAs and some European ECAs have not made any such policy proclamations.

With the Petroleum Industry Bill (PIB) already being prepared in anticipation of presidential assent as stakeholders are divided over proper consideration for ESG, energy economist, Prof. Wunmi Iledare insisted that ESG must be on the radar of the industry as an important determinant for future investment flow.

Iledare said: “The oil and gas industry in Nigeria is not anti-environmental optimisation,” adding that the Society of Petroleum Engineers makes conscious efforts to produce oil and gas in a safe and environmentally secure manner.

According to him, for years, Health, Safety, Environment, and sustainability is a recognized discipline in the Petroleum Engineering profession.

Industry expert, Henry Adigun equally told The Guardian that although ESG is not at its best in the PIB, there are conscious efforts in the country to prioritise ESG.

He noted that the country is making efforts to attract green bonds, adding that the focus on gas would be an elixir towards ESG investment.