For Nigeria to realise its target under the energy transition, energy security and sustainability development agenda, Seplat Energy Plc has urged oil and gas companies in the country to show commitment to the pursuit of a strong Environment, Social and Governance programme in their areas of operation.
The Chief Operations Officer of Seplat Energy, Samson Ezugworie, said this at the Society of Petroleum Engineers (SPE) Oloibiri Lecture Series and Energy Forum 2023, in Abuja, in the theme: “Effective Gas Resources Utilisation: A Lever for Enhanced Energy Security and Achieving Net-Zero Emission Goals in Nigeria”.
The company explained that its ability to maintain the lead in the Nigerian gas sector was hinged on a strong ESG (Environment, Social and Governance) framework, which has provided the strong foundation for Seplat Energy’s gas business and its decarbonisation projects.
Seplat Energy Plc, which is one of Nigeria’s indigenous energy companies, is listed on the Nigerian Exchange and the London Stock Exchange.
Ezugworie, who spoke during the Energy Forum Discussion Session, represented the company’s Chief Executive Officer, Seplat Energy, Roger Brown, reaffirmed the company’s aggressive and unwavering commitment to sustainability and energy transition.
He said Seplat Energy as a demonstration of the company’s commitment to the ESG framework, Seplat Energy has been leading in domestic gas supply in the country, with about 300 million standard cubic feet of gas per day (SCF/F), translating to about 30 percent of Nigeria’s gas-to-power supply.
He reiterated the company’s commitment to energy transition, energy security and sustainability, noting that Seplat Energy’s corporate social responsibility (CSR) programmes had grown over the years with immeasurable impacts on the people.
“We have a very aggressive programme to eliminate flares by 2024, through a combination of solutions. We have created a New Energy Directorate, with a mandate to look into power and the entire energy transition value chain,” he said.
The company’s primary commitment, he maintained, was to reduce its greenhouse gas (GHG) emissions resulting from its direct operations, adding that Seplat Energy established a broad set of investment activities designed to reduce emissions from its operated facilities and offset residual emissions.
He said Seplat Energy’s Flares Out project, which forms part of the company’s commitment to achieving Net Zero by 2050, was on schedule to reach the target of ending routine flares by the end of 2024.
“In 2022, improvements in performance of the associated gas (Ag) compressor in Oben and Amukpe, alongside regular asset integrity checks and other facility improvement activities, were effective and AG flare volume was reduced by 18.2% at Oben (5.7 MMscfd against 6.97 MMscfd in 2021) and by 39.9% at Amukpe (1.1 MMscfd against 1.83 MMscfd in 2021).
“Our diesel replacement programme seeks to increase the use of gas, a less carbon intensive fuel for power generation and where feasible, solar power is also being considered. We are piloting solar at our Amukpe warehouse to power equipment on site and plan to power the security outposts located around our operations using solar energy in 2023,” he said.
Ezugworie said the company has committed $11.5 million in 2023 towards projects that would end routine flares in its operations, including $10.8million towards installing gas compression facilities at the flow stations in Amukpe, Oben and Sapele, and $0.7 million towards incineration at the Amukpe flow station.
Upon completion of these projects, he said Seplat Energy plans to improve its gas handling capacity and reduce flares by approximately 30 MMscfd in 2023 and 20 MMscfd in 2024, to monetise flare gas in line with its corporate strategy and the national flare gas commercialisation initiative.
In addition, he said Seplat Energy has so far committed $1 million towards planting trees across Nigeria as part of afforestation efforts that would capture residual emissions.
In 2023,he said the company’s focus would be on mobilising community stakeholders and completing land acquisition to enable the commencement of tree planting in Imo, Edo and Abuja.
In attendance at the event were the Group Chief Executive of NNPC Limited, Mele Kyari, as well as representatives from the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), oil companies, oil servicing firms, and a host of other Nigerian energy industry players.
