Petroleum Minister Sylva says the Act will also boost oil reserves from 37 billion barrels to 40 billion barrels.
The Petroleum Industry Act (PIA) will assist Nigeria in increasing its oil production to 4 million barrels per day, the Minister of State for Petroleum Resources, Timipre Sylva, has said.
That is an increase of over 310 per cent when compared to the 1.2 million barrels per day the country currently produces.
According to him, the Act will also boost oil reserves from 37 billion barrels to 40 billion barrels, while also drawing on the country’s estimated 600 trillion cubic feet of natural gas reserves to provide clean and efficient energy.
Mr. Sylva, speaking at the Seplat energy summit themed “Global Trends In Energy Transition”, said the new law has enhanced the Nigerian petroleum industry’s reputation, provided the pathway to new investments, and consolidated Nigeria’s ability to play a significant role in meeting the world’s growing demand for energy.
“The PIA 2021 will undoubtedly assist in harnessing Nigeria’s potential to achieve its plan of increasing oil production to 4mb/d and oil reserves from 37bbls to 40bbls, while also drawing on the country’s estimated 600TCF of natural gas reserves to provide clean and efficient energy,” he said.
“These resources will be crucial in supplying world markets with a broad portfolio of energy options, as well as supporting the global endeavor to alleviate energy poverty as envisioned in the United Nations’ Sustainable Development Goal 7.
“This is our approach to the issue of renewable energy and the energy transition. While acknowledging our commitments to net-zero as a nation, there is no gainsaying the fact that Nigeria requires fossil fuel as its baseload energy source.
“This is undoubtedly a major concern for climate activists in developed nations, but the clamor to emphasize only renewable energy as the sole pathway to energy transition is a source of concern for African countries that are still working to achieve baseload industrialization, address energy poverty and ensure reliable power supply.”
He said that will be the approach of the country to the issue of renewable energy and the energy transition.
He stated that the country has rejected the concept of a single pathway to the energy transition saying multiple pathways to the energy transition should and must exist to ensure that no country is left behind in the process of achieving net-zero by 2050.
“First is the Focus on Gas. For us, this is at the heart of the energy transition and represents the first step in the journey to renewables away from oil. Already, we have declared that gas is our transition fuel, and also represents a destination fuel, as we envisage that it will be part of our energy mix by 2050, given the vast resources that can be commercialized and utilized,” said.
Meanwhile, the Chairman of Seplat, Bryant Orjiako, said the company will stop gas flaring by 2024, six years before the government’s deadline.
“We are going to be flaring out, six years ahead of policy. Over 2.8 million tonnes of carbon emission and greenhouse gases will be taken out of our environment,” he said.
“That is huge, that is a major investment. When we speak about investment in gas, energy is not just about electricity, 70 to 80 percent of the energy in Nigeria is from the household – that is from cooking, firewood, charcoal and these are very dirty forms of fuel. Also, these forms of fuel create health, the fumes that are inhaled and all of that.”