By Adewale Sanyaolu

The Managing Director of TotalEnergies E&P Nigeria Limited, Mr. Mike Sangster, has warned that for the country to unlock and maximise the potential of the Petroleum Industry Act (PIA), the too many litigations against oil companies which threaten operational stability and induce long term uncertainties must be addressed.

Sangster, handed down the warning at the management session of the Nigerian Association of Petroleum Explorationist (NAPE) annual conference with the theme, PIA: Implication for Oil and Gas Industry and Energy Transition in Nigeria held recently in Lagos.

The TotalEnergies MD listed other threats to unlock and maximize the potential of the PIA to include; political will for a consistent implementation of the provisions of the law, continuous engagement and consultations with all stakeholders for the unflinching support necessary for the success of the law.

Others are that too frequent amendments will foster policy instability and instigate apprehension among investors, insecurity and proper/transparent management of the transition from the now defunct agencies to the new ones.

He added that the PIA is invariably the most significant legislation to impact the oil and gas landscape due to its ramifications on the industry and country at large.

According to him, the Act is expected to eliminate regulatory/legal hurdles, attract critical investments, unlock financial resources, accelerate local content development, and enhance employment, among other opportunities.

He noted that the case for investments envisaged by the PIA still has to be made in view of climate concerns and the attention on energy transition.

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He disclosed that the PIA implementation must be accelerated because the window for investments into fossil fuels is narrowing, stressing that very few years would remain for access to urgent funds to develop the Nigerian petroleum industry to launch it into that era of energy transition and prosperity that the world envisions.

‘‘We must appreciate that although fossil fuels will remain the main source of energy for the world for some time to come, the march to renewable energies is irreversible.

Nigeria may not have much choice over the speed and velocity of the energy transition. It is therefore very urgent that the country takes maximum advantage of the deregulation of the industry and other welcome provisions of the PIA to exploit her petroleum resources, build critical infrastructure and position competitively in the energy transition,’’

He said  President Buhari has outlined Nigeria’s path to net zero in consonance with the goals of the Paris Agreement. He said what this means for  TotalEnergies is more energy, less emissions,saying in response to the global climate challenge and the growing demand for more affordable, more accessible, and cleaner energy, the company has adopted the name TotalEnergies to affirm its identity as a broad energy Company and confirm its ambition to be a major player in the energy transition, on the road to net zero by 2050.

‘‘With the new identity, the Company underscored its resolve to produce more energy with less emissions in order to contribute to the planet’s sustainable development and effectively address the issue of climate change. The Company is doing this by re-inventing itself and moving towards new energies, without renouncing its origins in oil and gas, but by decarbonising them as much as possible and growing in renewable electricity, hydrogen, biomass, wind, and solar power.’’

‘‘Our Company’s energy mix will change significantly in the coming years. Currently, our production is about 55 per cent oil, 40 per cent gas, and 5 per cent electricity.

But by 2030, it will be 50 per cent gas; 35 per cent oil; and 15 per cent electricity.

By 2050, the mix is targeted to be 40 per cent renewable power, 40 per cent gas (primarily carbon-free) and 20 per cent liquid products. Out target is to get to Net Zero in all our operations worldwide by 2050. We are committed to this target and working with all our stakeholders, we believe we can deliver cleaner, more affordable, and more available energy to as many people as possible.”