From Uche Usim, Abuja
As the world gradually weans itself off fossil fuels, TotalEnergies has said that it would expand its current investments of over $3 billion annual investments in renewable energy in line with its efforts to reduce its global carbon footprint.
The Managing Director of the company, Mr Mike Sangster, made the revelation in Abuja on Wednesday at the ongoing Nigeria Oil and Gas Conference.
According to him, Nigeria, being one of its global operations hubs, will be witnessing its investment in renewable energy sources, especially with the passage of the Petroleum Industry Bill (PIB), meant to unlock the robust alternative energy potential of Nigeria.
He noted that the demand for oil and gas in future will witness a fix as the world moves into cleaner energy.
‘All the companies have taken different actions. As a corporation, we invest $2-3 billion in renewable energy annually. We are looking into cleaner energy as we reduce emissions. We have a whole list of initiatives we are running with. Optimisation of our compressors to end any fugitive emission and reduce our carbon footprints is on the list. We need to meet the growing energy demands and must be done with minimum emissions,’ he said.
On the newly-passed Petroleum Industry Bill (PIB), Sangster described it as a soothing development, considering that it has been in the works for about 20 years.
‘The National Assembly and the executive deserve commendation. The collaboration has been useful because the IOCs also were consulted. It is a watershed moment. The progress being made and the harmonisation is what we look forward to in the final version that is passed. We will put our heads together to see how we can make the best of it.
‘We have a number of engagements. It’s a bill that is a win-win for operators, country and other stakeholders. The bill is good to stimulate production. There are many issues to tackle. Security is key. Incentivising host communities through the trust fund is key. Security is a huge challenge. So it the issue of cost, offshore and onshore. Infrastructure is also a challenge. We need to reduce carbon emissions. This is key. We are looking at the energy mix. So, we need to work together to drive down costs. PIB is a big elephant in the room”, Sangster added.
Earlier in his remarks at the panel, the Chairman, Senate Committee on Petroleum, Bassey Akpan assured Nigerians that the National Assembly Committee harmonising the PIB would conclude its work next Tuesday to iron out grey areas, especially on what the host communities would get.
‘We’re harmonising between both chambers. Between now and Tuesday, we would be laying down our report and then the law will be heading to the executive. We’ve captured all things we feel will move Nigeria forward.
‘We look forward to improvements, especially in the downstream and midstream; concept for the management of the host communities and all that. They can now take their destinies into their hands and we have wrestled off states’ overbearing influence.
‘What was laid down is 5% of actual operation expenses IOCs in the preceding year. What was suggested by the executive there is 2.5% and we said 5% to ensure peaceful coexistence and putting the protection of these assets on the shoulders of the host communities so we end this issue of disruptions and hostilities,’ he stated.