By Jerome Onoja
Mr Austin Avuru and other panellists at the ongoing ADIPEC 2019 Conference
Nov 13, Abu Dhabi, UAE: The Chief Executive Officer of Seplat Petroleum Development Company, Mr. Austin Avuru has said that the company is currently responsible for one-third of gas to power generation in Nigeria, and that they would double their gas production capacity in the next three years. He stated this in Abu Dhabi, United Arab Emirates while speaking on a panel for “New Strategies to Accelerate the Industry’s Response to Environmental Pressures” at this year’s Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
Answering questions on what Nigeria as a major producer of crude oil and Seplat as a company are doing in respect to protecting the environment, he said that Nigeria is committed to a 20 per cent reduction in greenhouse gas emission by 2030 through its commitment to the Kyoto Protocol. Avuru stated emphatically that Nigeria’s emission is only 0.3 percent of the total world’s emission. He also noted that the country’s energy mix is 15 per cent hydro and 85 per cent gas to power. He, however, informed that there is non-grid based electricity, generated by diesel-powered generators. And as a result, the country has formulated a policy aimed at shifting from diesel to gas generation, adding that Seplat as a company is playing a key role in this regard by delivering 350Mscf of gas per day into the domestic market.
The Seplat boss said, “Seplat Petroleum is a Nigerian independent producing some 120,000 barrels equivalent of oil and gas per day, listed on the board of London Stock Exchange and Nigerian Stock Exchange in Lagos. Our production is roughly 50-50 ratio of oil and gas. “It’s always an interesting conversation. The world needs energy to survive, but the world also needs a clean environment to survive. So, it’s finding that balance between delivering the energy the world needs and being environmentally protective, that’s what this discussion is all about.
“For us in Nigeria as a country, we are committed through the Kyoto Protocol to a 20 percent reduction in greenhouse gas emission by 2030. But to put it in context, Nigeria’s total greenhouse gas emissions is only 0.3 percent of the global total. So, our energy mix fortunately, even at the starting point is friendly. It’s 15 percent hydro and 85 percent gas to power. There is no coal power in Nigeria.
Mr Austin Avuru
“However, there is non-grid electricity generated by diesel generators and that’s where as a matter of policy, the substitution of that diesel generation with gas generation is a major national policy; and Seplat as a company plays a key role in that. We deliver some 350 Mscf of gas per day into the domestic market; most of it for power generation.
“We are responsible for one-third of gas to power in Nigeria today as an independent (company). And we are increasing that. We would double our capacity in the next three years. So for us, both as a nation and as a company, our key efforts are geared towards diesel substitution by gas.” Corroborating with other panellists, he said that the solution to cut down gas emission lies with efficient use of gas, gas flaring capture, reforestation and smart agriculture. According to him, between 2009 and 2019, Nigeria’s gas flaring reduced by 45 percent, which happened not necessarily because of policies, but for the market that the country’s power generation policy has created. “And as everybody has said, within the oil and gas space, I think the solution to environmental stewardship lies with gas, efficient use of gas, and gas flaring capture for power generation. And that’s also the role we play. “Nigeria is committed to zero flaring in the next five years. It looks ambitious, but I will tell you that the last ten years between 2009 and 2019, our gas flaring has reduced by 45 percent. And most of this didn’t necessarily come through policies, though there are policies to penalize flaring. What has happened is that a domestic market for gas has been created with the power generation policy.
“For us at Seplat, for instance, if I’m selling a million Btu of gas for $3, it’s stupid to flare it. So there is now a commercial imperative to capture otherwise flared gas and put it to use and make money out of it.
“So, over the last ten years, we have had a larger reduction in flared gas than the previous 30 years. And over the next five years, we think that we would completely eliminate gas flaring; diesel substitution to gas generation is being worked on and the efficient use of that follows; then, there are other environmentally-friendly efforts, like reforestation that are ongoing.
“Deforestation in Nigeria has been a big issue. So, smart agriculture, and reforestation through tree planting are initiatives put together by the government and pushed by the private sector, including independents like us. Though the nation contributes a paltry 0.3 percent to the global emission, we would further reduce that by 20 percent come 2030. So that’s where we are, both as a company and as a country, Nigeria,” he said. The theme of this year’s ADIPEC is “Oil and Gas 4.0.” The conference which commenced on the 11th is expected to end on the 14th of this month. It is an annual event which provides one of the most important platforms for the oil and gas industry players to do business and exchange information. The conference attracts energy ministers, global CEOs and leading decision makers across four days of business discussions and knowledge exchange.
