Oando: How Nigerian Oil Firms Should Approach Energy Transition
In the wake of the growing anxiety among oil and gas companies to embrace energy transition, Oando Energy Resources, has advised Nigerian independents to be systematic in their approach.
Speaking at a panel session at the just ended 2021 Nigeria
Oil and Gas Conference and Exhibition (NOG) in Abuja, the Chief Operating Officer, Oando Energy Resources, Mr. Alex Irune, said though, energy transition was real, but that Nigerian companies needed to focus more on extracting the oil on the ground and use the proceeds to fund the transition.
Irune, said there was need to take advantage of the oil deposits today to shore up the finance that may be inaccessible in the next 30 years when oil may have lost its attraction for investments.
He noted that investments in renewables has meagre margins compared to the traditional oil and gas business and therefore, should be done with strategic planning.
He said: “Now, for us locally, I think that will be the first stage of our movement into renewables, simply because the margins don’t work.
“Renewables anywhere is from zero to three per cent. The work will do today (oil extraction) anywhere, is from 14 to 28 per cent to 40 per cent, depending on what part of the world, if you have a tight programme and very little incursions.
“So, from a business standpoint, renewable is the future, Gas is definitely the transition for us. But in the meantime, we need to accelerate extraction, and how do you do that? Just get as much capital as you can immediately to pull that oil out of the ground.”