Oando Energy Resources, the top energy company in Nigeria, is pushing for a strong resumption of crude oil extraction. This drive stems from the country’s huge oil reserves, which are regarded as essential to its industrialization and socioeconomic growth. Given that the globe is moving toward more environmentally friendly energy sources, Oando’s plea for more oil production is especially noteworthy.
During the recent Nigerian Oil and Gas (NOG) Energy Week 2024 in Abuja, Dr. Ainojie Irune, Executive Director of Oando Plc and Chief Operating Officer of Oando Energy Resources, emphasized the importance of utilizing Nigeria’s vast energy resources. He pointed out that despite the pressures of the global energy transition, Nigeria’s socio-economic circumstances necessitate a continued focus on oil and gas to drive development.
Dr. Irune expressed concerns over the rapid shift towards renewable energy, describing it as premature for Africa, given its abundant energy resources and the prevailing poverty. He argued that a swift transition could potentially worsen the economic situation, stating, “We can’t transition ourselves to further poverty.” His remarks reflect a broader apprehension about adhering too quickly to the international push towards achieving the Sustainable Development Goal (SDG) 7, which aims for universal access to modern energy services by 2030 while reducing greenhouse gas emissions.
Highlighting Oando’s strategy, Dr. Irune revealed that the company is no longer feeling the pressure of the energy transition. Instead, it is accelerating its activities in crude oil extraction. “African countries need to extract every molecule of crude oil from beneath the earth’s surface and use natural gas to champion the continent towards sustainable development,” he said, advocating for a balanced energy mix where oil and gas continue to play significant roles.
Oando’s commitment to supporting Africa’s economy is also evident in its renewable energy projects. The company’s Clean Energy Division is actively engaged in initiatives across solar, wind, geothermal, and hydro sectors. This includes a notable collaboration with the Nigerian National Petroleum Company Limited (NNPC) on several projects aimed at bolstering the continent’s energy infrastructure.
One of the standout projects mentioned by Dr. Irune involves the transportation sector, where Oando is pioneering an electric vehicle initiative with the Lagos state government. The company plans to deploy 100 buses, having successfully completed the pilot phase. This project is part of a broader effort to integrate renewable energy solutions into the economy, while still capitalizing on the country’s oil and gas reserves.
Dr. Irune also spoke about the importance of ecosystem development, local capacity building, and knowledge transfer. By investing in these areas, Oando aims to enhance its operational base and expand its project scope in a sustainable manner. “It’s essential to build a base that allows us to explore our oil and deploy capital to increase the size of these projects in a manageable way,” he explained.
In a related discussion at NOG Energy Week, Michelle Pflueger, Director of Deepwater and Production Sharing Contracts at Chevron Nigeria, echoed the need for genuine collaboration in the Nigerian oil and gas industry. She highlighted the importance of partnerships in harnessing Nigeria’s oil and gas reserves, human capital, and investment potential for the benefit of all stakeholders.
Pflueger emphasized the critical need for stability, security, and a competent workforce in the industry. She also stressed the role of business partners in bringing necessary technology and services to the table. “I believe it’s partnership. I don’t think any one company, I don’t think the federal government alone can build the energy security that this country needs,” she stated, advocating for a unified approach to overcoming industry challenges and maximizing potential gains.
