By Adeyemi Adekunle
At the recently concluded 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, emphatically urged Nigeria to intensify its crude oil extraction efforts to foster socio-economic development and industrialization.
Amidst global pressures to transition towards renewable energy, Irune highlighted the critical need for Nigeria to harness its abundant energy resources for sustainable growth.
Speaking on the panel themed “Navigating a Sustainable Future for Independent Producers,” Irune cautioned against the rapid shift to the 30-year Sustainable Development Goal (SDG) 7 vision, which aims for universal access to modern energy services by 2030 and a significant reduction in greenhouse gas emissions.
He argued that such a swift transition could exacerbate poverty in Africa, a continent rich in energy resources yet plagued by widespread poverty.
“We have always felt it was too soon for us as Africans with huge amounts of energy resources, but we exist in deep poverty,” Irune stated.
“We can’t transition ourselves to further poverty. We committed ourselves to the vision of turning all of our energy resources to renewable energy; unfortunately, we have no business latching on to that dream.”
Irune, who also serves as the President and CEO of Oando Clean Energy Limited, stressed the importance of a balanced energy mix. He underscored that oil and gas would continue to play pivotal roles in the foreseeable future.
“At Oando, we no longer feel pressured by the energy transition push; instead, we see an acceleration in our crude oil extraction,” he said. “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.”
Irune elaborated on Oando Plc’s commitment to supporting the African economy through renewable energy projects.
He highlighted ongoing huge initiatives in transportation, solar energy, waste-to-value, wind, and geothermal energy, undertaken in collaboration with the Nigerian National Petroleum Company Limited (NNPC).
“While extracting oil, we can harness solar, wind, geothermal, and hydro in ways that support our economy,” he explained.
A notable project Irune mentioned is the electric vehicle initiative with the Lagos State government, which is set to deploy 100 buses following the completion of a successful pilot phase.
He emphasized the importance of ecosystem development, local capacity building, and knowledge transfer in ensuring sustainable growth.
“We believe in contributing to ecosystem development, learning, and local capacity building,” he noted. “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.”
In a related discussion, Michelle Pflueger, Director of Deepwater and Production Sharing Contract (PSCs) at Chevron Nigeria and Mid-Africa Business, expressed the necessity for genuine stakeholder collaboration to foster growth in the Nigerian oil and gas industry.
Pflueger emphasized that the industry requires stability, security, and a competent workforce, alongside business partners who can bring in advanced technology and services.
“There are the reserves, there are the people, I believe there are the investments; that’s why we are here. We have people willing to invest money in technology to solve these challenges,” Pflueger stated.She outlined that true collaboration is essential, involving both independent producers and international oil companies (IOCs).
“We all need to come together to talk about some of the challenges that span the whole portfolio, from deepwater to near-shore to the energy transition.”
Pflueger pinpoints on a note of optimism, expressing belief in the potential for collaborative efforts to yield greater returns for all stakeholders.
“We are all going to make money. We all like to do well in our returns on investments. But I think there is another view where we can actually make the pie bigger so that there is more for everybody,” she said, advocating for a spirit of true collaboration to overcome industry barriers and drive growth.
For years now Nigeria has continued to navigate the complex landscape of energy transition, the calls for aggressive extraction of its vast oil and gas resources underscore the balance needed between economic development and sustainable energy practices.
