Nigeria moves to exceed OPEC quota, urges democratic global energy transition
Nigeria is pushing for increased crude output to double current production limits set by the Organisation of Petroleum Exporting Countries (OPEC), as oil price maintains optimistic outlook.
While the current production tally of 1.4 million barrels per day aligns with the cap set by the cartel, Nigeria is planning to increase output to 2.4 million barrels.
This, however, would not be the first time the country was attempting to boost its quota. A projection of 40 billion barrels as reserve and four million barrels as daily production has been elusive for the past 10 years.
In the 2022 budget, the nation’s crude output stands at 1.88 million barrels per day (bpd), although its agreement with OPEC is roughly1.47 million bpd.
Addressing staff of the Nigerian Upstream Regulatory Commission (NURC), yesterday, the Chief Executive Officer, Gbenga Komolafe, hinted that Nigeria would raise the bar of crude and gas production from the current level of 1.4 million to 2.4 million bpd.
According to him, the new company would not only do everything possible to shore up the nation’s oil production quota and boost investments in the upstream segment, but also deliver a 21st Century upstream petroleum regulator anchored on principles of effective and efficient services, transparency, professionalism and cost consciousness.
He said with the passage of the Petroleum Industry Act (PIA), the sector was set to lay a solid regulatory foundation for future generations to build upon.
IN a related development, the Minister of State for Environment, Sharon Ikeazor, has urged the Conference of Parties, popularly called the ‘COP26’ meeting, to review its proposed planned ban of coal and fossil fuel by 2040.
The minister, who made the appeal yesterday in Abuja, while speaking at the British High Commission COP26 briefing, explained that Nigeria, being a fossil fuel-dependent nation, would protect its interest, and as such, the gathering must take into consideration the concerns of nations that rely on coal and fossil fuel to power their economies.
She submitted that global energy transition must be inclusive, equitable and just, taking into consideration the different realities of various economies.
Though renewable energy is said to be the next frontiers of sustainability, Ikeazor insisted that as the world population grows, so also oil demands do.
The minister held that the overall objective of the UN Climate Protocol was to reduce emissions, adding that Nigeria’s policies and strategies had been tailored at energy transition.
Head, Climate Change and Energy West Africa, British High Commission, Sean Melbourne, has advised the Federal Government to reduce import duties on solar panels to boost energy provision in Nigeria.
“Reducing import duties on solar panels may lead to loss of revenue in the short term, but it will also lead to cleaner energy and boost energy provision in the country,” he said.
Describing the COP26 meeting as perhaps the most important gathering of world leaders, businesses, civil society and others for many decades, Melbourne disclosed that achieving 1.5 degrees Celsius “is still within reach, but only with strong immediate action.”
UK’s Deputy High Commissioner, Ben Llewellyn-Jones, who spoke on behalf of High Commissioner Catriona Laing, said Britain was extending support to Nigeria in decarbonisation of the power sector and staying the course on power sector reforms, including cost-reflective tariffs, reduction of grid transmission and distribution losses besides removal of fuel subsidies
On his part, the Italian Ambassador to Nigeria, Dr Stefano Pontesilli, said Nigeria, with its experience in the field of hydrocarbons and with a population that is due to be the fourth largest on the planet in 2050, has a significant role to play in COP26.
He maintained that though challenges and opportunities may lay ahead, “what is clear is that the transition to green and circular economies will be at the heart of both national agendas and multilateral collaboration in the coming years and that it presents the classic ‘win-win’ scenario where countries with mature and developing economies can collaborate successfully.