Mallam Mele Kyari, the Group CEO of the Nigerian National Petroleum Company Limited (NNPC), has urged for cooperation among oil and gas industry participants and policy makers in Africa to prioritize investments in renewable energy infrastructure, research and development, and capacity building.
He also emphasized the significance of the African Continental Free Trade Area (AfCFTA) agreement for stakeholders in the continent’s oil and gas industry to work collectively in tackling challenges that may arise from energy transition.
Kyari made these statements during a special discussion arranged by the Petroleum Technology Association of Nigeria (PETAN) on the sidelines of the Offshore Technology Conference (OTC) 2023, currently taking place in Houston, Texas, United States.
The theme of the PETAN-organised discussion was: “Energy Transition in Africa: The Journey, Challenges and the Way Forward”, while the central theme of the OTC 2023 was: “Delivering the Future of Offshore Technology.”
Mr. Adokiye Tombomieye, the Executive Vice President of Upstream Business at NNPC, who represented Mallam Mele Kyari during the event highlighted the importance of collaboration among stakeholders in achieving energy security, transitioning to cleaner energy, and unlocking Africa’s vast renewable energy resources to ensure a sustainable and prosperous future.
He also emphasized that the energy transition in Africa offers both challenges and opportunities that can only be addressed through joint efforts to prioritize investments in renewable energy infrastructure, research and development, and capacity building to deliver the future of offshore energy.
“Only through collaboration can we achieve energy security and transition to cleaner energy, unlocking the potential of Africa’s abundant renewable energy resources and ensuring a sustainable and prosperous future for all.” He said.
He commented that the discussion’s theme was fitting and acknowledged the challenging path towards energy transition in Africa.
Despite having some of the world’s biggest oil and gas reserves, Kyari pointed out that the continent had not fully utilized these resources to promote sustainable development.
Additionally, he mentioned that limited access to reliable and affordable energy had hindered economic growth and development, particularly in rural regions.
Kyari affirmed that the African oil and gas industry had been a vital contributor to the continent’s economic growth for decades, and it was essential to emphasize the need for its sustainability.
“However, moving towards a more sustainable future, we must acknowledge that the industry is transforming rapidly.
As we gather here today, it is essential to acknowledge that Africa is at the forefront of the global energy transition.
“The journey towards a sustainable, low-carbon energy future presents challenges and opportunities for the continent.
The energy transition is driving changes in the global energy mix, and it presents significant challenges for Africa (financing, infrastructure, policy/regulatory frameworks, skills and capacity).
“We must adopt a strategic approach to address them to ensure that we remain competitive, sustainable and relevant in the years to come,” Kyari canvassed.
Despite the challenges facing the continent, the GCEO pointed out that Africa has several opportunities for energy access, economic growth, environmental sustainability, and regional integration in the energy transition.
He said some levels of progress had been attained from exploiting several opportunities, resulting in a growing interest in renewable energy sources such as solar, wind, and hydropower, as well as an increasing focus on energy efficiency and conservation.
He admitted that governments, private sector players, and civil society organisations had all played essential roles in driving this change.
He forecasted that in the next 20 years, energy demand in Africa was expected to increase by 30-35 per cent to support the projected increase in population and industrialisation.
This, Kyari said, presents an enormous opportunity for the players to form partnerships across the continent and build a sustainable future.
He said, “Therefore, we must also discuss the options that abound in energy transition with the AfCFTA to balance economic growth with environmental sustainability.
“One of the key factors shaping this transition is the AfCFTA, which aims to create a single market for goods and services, promote cross-border trade and investment, and enhance economic integration across the continent.
“As an industry, we must take advantage of the opportunities presented by this landmark agreement and work collaboratively to address the challenges that may arise.”
Kyari, maintained that several reforms must be pursued rigorously to diversify Africa’s energy mix, enhance local content and capacity building, embrace technology and innovation, and strengthen partnerships and collaboration.
According to him, partnerships were required as more African countries continue to make hydrocarbon discoveries.
He enjoined all the industry stakeholders to collaborate, share knowledge and help each other in critical areas, including technology, exploration and production, research and development, technical expertise and human capacity development to spread the wealth within the continent.
At NNPC Limited, Kyari said they understand the importance of partnership in achieving a sustainable energy industry in Africa.
He said the company had worked closely with countries, companies and other stakeholders to develop innovative solutions to meet the continent’s energy needs, as demonstrated in the progress of the 5,600Km Nigeria-Morocco Gas Pipeline to supply gas to Europe through Morocco and the 13 ECOWAS member countries.
Kyari, however, seized the opportunity to thank PETAN for always being ahead of the curve, adding that NNPC Limited was fully committed to partnering with all players in the energy industry to drive Africa’s energy sector towards sustainability and growth to guarantee “our Energy for Today and Energy for Tomorrow.”