Nigeria seeks collaboration to capture stakes in $277b global carbon market
The Nigerian National Petroleum Corporation (NNPC), yesterday, declared that there was the need for oil and gas operators to decarbonise to improve the country’s footprint in the sector and capture a substantial part of the $277 billion global carbon market.
While the total value of global carbon markets rose by 20 per cent recently, standing at $277 billion given pressure to cap emissions, Group General Manager of the National Petroleum Investment Services (NAPIMS), Bala Wunti, said the country earned €1 million from its partnership with Total Nigeria.
He said opportunities abound if the country involved all International Oil Companies (IOCs) and other players in attempts to explore the carbon footprint.
Wunti, who spoke yesterday, at the Nigeria International Petroleum Summit in Abuja, noted that oil and gas projects should consider opportunities for reduced emission to enable the country to earn positive credit.
“Through our partnership with Total Nigeria, we marketed our credit position and monetised it and we have realised €1 million so far.
“This is the first recorded carbon credit proceeds we have received on behalf of the Federal Government in the partnership between NNPC and Total,” he said.
He said in the near future, the world will know exactly what is the potential that the country can make from carbon credit as the entire industry transitions.
He disclosed that Group Managing Director of NNPC had directed NAPIMS to do whatever it could with its partners to ensure monetisation of the credit position for the benefit of the country.
“The business ensures that projects that give opportunity for reduced emissions receive positive credits, which accumulate. The credit can be uses to offset negative position in our businesses.
“And so, we create a carbon neutrality, or if we have excess carbon credit, we don’t have to use it to upset negative credit, but can be monetised for those with negative position,” Wunti explained.
On the industry’s outlook, Wunti raised concern over insecurity and its impact on the sector, adding that the Petroleum Industry Bill (PIB) was critical to success.
He said the implementation of the Nigerian Upstream Optimisation Programme (NUOP) would be vigorously pursued to ensure that the sector makes profit.
Given current challenges in the sector, Wunti noted that it remained elusive for investors to stake their money, unless they were clear on attractive returns, adding: “The PIB will remove uncertainty and bring clarity and competitiveness, as well as reduce cost.”
Deputy Managing Director, Deep Water, Total Nigeria, Victor Bamidele, noted while assets in the sector have a life span, deriving maximum value from them would prevent wastage.
Bamidele, who stressed the need for the industry to collaborate on different fronts to navigate the challenges, noted that it was important to leverage existing opportunities.
He said while the country was working hard to develop the gas space, holistic and collaborative would be required for greater success.
On his part, Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), Bayo Ojulari, noted that decarbonisation, cost efficiency and resilience were necessary for the upstream sector.