Jerome Onoja Okojokwu-Idu
As the global push towards energy transition intensifies, the Chairman, Platform Petroleum Limited, Mr Dumo Lulu-Briggs, has said that examining the peculiarity of Africa, the continent was not ready for the 2050 Net-Zero target.
Africa is home to over 600 million people without access to electricity and 900 million people without access to clean cooking. It has about 125 billion barrels of oil reserves and about 620 trillion cubic feet of gas reserves. But these resources risk being stranded, because of the global commitment to low carbon emissions.
To harness these resources and provide the needed energy required for economic growth and development on the continent, Lulu-Briggs proposed that Africa needs to develop its funding model and its technologies.
In an interview with journalists at the margins of the recently concluded Offshore Technology Conference (OTC) in Houston, Texas, United States, Lulu-Briggs emphasised the need for cross-border collaboration. He noted that the African Continental Free Trade Area (AfCFTA) would help to increase trade volume within the continent, address cultural barriers, tariff issues, issues around the movement of goods and services, and drive economic growth and development.
He said that Africa must have a robust economy to negotiate on global issues from a position of strength for it to become a force to reckon with on critical global decisions, adding that there was a need for African countries to trade amongst themselves, do things together and build capacity in-continent.
“In Nigeria, we have so many other issues. Do we want to transit? Yes. But we need to first and foremost expand the economy large enough that it can accommodate all Nigerians. And you need energy to be able to expand the economy. We have been talking about investments in renewable energies and all of that, and it is difficult for us to afford those. But we know that that holiday is not going to last for too long,” Lulu-Briggs said.
“But if Africa were strong, it can say ‘You know what? We understand all that you are saying; we are not irresponsible. We also want to do Net-Zero, but maybe not 2050, maybe not 2060’. What I am saying is Africa would be on the table when these issues are being taken, if the African economy is strong. And it is a ticking time bomb. There’s a need for us to quickly see how we can come together as Africans and begin to trade amongst ourselves, do things amongst ourselves, grow that capacity so that we can also be on the table when these key issues are being discussed.”
Lulu-Briggs who also discussed his company, Platform Petroleum, said that in the last 15 years, the company has surpassed its growth projection, producing about 11 million barrels of oil as against its projected about seven million barrels.
“In Nigeria, we have so many other issues. Do we want to transit? Yes. But we need to first and foremost expand the economy large enough that it can accommodate all Nigerians. And you need energy to be able to expand the economy.
He said that the company currently produces 30,000 Million standard cubic feet of gas per day (MMScfd), which it supplies to the domestic market. He added that since it began operating, the company has not had any disagreement with its host community that led to downtime.
“For Platform, we are acting quite responsibly. We are one of the smallest assets in the marginal field’s basket in 2003/2004. Yet, we have grown with no more than 2,000 barrels of oil production. It is just now that we are doing 3,000 – 2,500. We have been able to do quite a whole lot. We are also fortunate that we can commercialise our entire gas. Two to three years ago, we were paying penalties for flaring gas. But we can assure you that in the next two months, we will have zero flares. So we have been able to commercialise our entire gas — everything,” he said.
“We have tried as a small indigenous company and also expect support for running our affairs quite prudently; for having a robust arrangement with our host community. We have never had any issues with our host community from the day we started to date. There has not been any downtime due to the differences we have had. There has been no such thing. So these are some of the things we expect that sometimes the government can look into and decide that ‘look, we need to pat these companies on the back by giving them more opportunities. So Platform truly qualifies for these opportunities from that very small asset.
“We have never had any issues with our host community from the day we started to date. There has not been any downtime due to the differences we have had.
“We did not even think that we would be able to do about seven million barrels of crude to date, but in the last 15 years, we have done about 11 million barrels. And right now, we are producing 30,000MMscfd of which all of that is being pushed into the local market.”
Lulu-Briggs explained that the company has been managing its production prudently to protect its reservoir, adding that Platform follows regulatory rules guiding operations in the Nigerian oil and gas industry regimentally.
He, however, noted that the company has faced enormous challenges, but its will to succeed has been its driving force, enabling it to surmount challenges and create opportunities for itself.
The defunct Department of Petroleum Resources (DPR) had in mid-2021 shortlisted 161 companies as successful bidders of the 2020 marginal field bid round. Lulu-Briggs regretted that Platform did not succeed in its bid but said that the company is working to collaborate with some of the successful bidders.
Oil theft has been a recurring decimal in the Nigerian oil and gas industry with some operators claiming losses of between 60 per cent and 90 per cent. Lulu-Briggs urged oil and gas operators in Nigeria to find a way to engage their host communities to prevent downtime in their assets.
He commended the Federal Government for the Petroleum Industry Act 2021, saying that the Act will help to reform and improve the competitiveness of the Nigerian oil and gas industry, attract investments and address issues around host communities’ challenges.
“We did not even think that we would be able to do about seven million barrels of crude to date, but in the last 15 years, we have done about 11 million barrels. And right now, we are producing 30,000MMscfd of which all of that is being pushed into the local market.”
