The Energy Sustainability Conference (ESC) 2024 held at Eko Hotel, Lagos on the 14th and 15th of November 2024 concluded with a resounding call for a balanced approach to energy security and sustainability. Organized by the Energy Institute in partnership with the Nigerian Association of Petroleum Explorationists (NAPE) and sponsored by Geoplex Drillteq Limited, the two-day event brought together experts, investors, and enthusiasts to deliberate on the critical theme; ”Balancing energy security with sustainability in Africa”.
On the second day, Engineer Wole Ogunsanya, Chairman of the Petroleum Technology Association of Nigeria (PETAN) and CEO of Geoplex Drillteq Limited, delivered an impassioned keynote address emphasizing the pivotal role of localizing the energy value chain to drive economic growth and innovation in Nigeria.
A Vision for Localized Value Chains and Public-Private Partnerships
Engr. Ogunsanya highlighted PETAN’s groundbreaking partnership with the Abia State Government as a model for public-private collaboration. This initiative, he explained, involves establishing a marginal field with the state as a minority stakeholder. PETAN has structured the project to maximize value for local communities while ensuring cost-efficiency. “We own the equipment, which allows us to subsidize costs and maximize cash flow,” Ogunsanya remarked. The project aims to stimulate local economies by allocating 75% ownership to the state and its indigenes.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Ogunsanya underlined the transformative potential of these partnerships, noting that localized stakes in oil production can inspire community ownership, reduce pipeline vandalism, and improve security. “When communities directly benefit from the resources flowing through their lands, they become the first line of defense against disruptions,” he added.
PETAN Seal of Quality: Driving Local Excellence
PETAN’s efforts to enhance local content extend beyond oil production. Ogunsanya announced the establishment of the PETAN Seal of Quality, developed in collaboration with NCDMB and Bureau Veritas. This initiative aims to equip local service providers with the tools and expertise needed to meet global standards. “We are training and supporting local companies to maintain their equipment and manage their operations efficiently,” he said.
Such capacity-building measures, Ogunsanya emphasized, are crucial for fostering innovation and ensuring the sustainability of Nigeria’s oil and gas industry. He pointed out that local startups and MSMEs are poised to play a significant role in energy decentralization, particularly through modular refineries, mini-grids, and solar home systems.
Financing the Transition to Sustainability
Ogunsanya’s address also touched on innovative financing mechanisms essential for the energy transition. He called for green finance initiatives, such as low-interest loans and subsidies, to reduce capital costs for renewable energy projects. He also advocated for leveraging African energy banks to mobilize the capital required for local infrastructure development.
“The oil and gas sector remains a stimulant for Nigeria’s economy,” Ogunsanya noted, “but we must integrate local companies across exploration, extraction, refining, and ancillary services like logistics and safety.” This approach, he argued, will create a self-reliant and sustainable energy ecosystem.
Decentralization and Energy Access
Decentralizing energy production emerged as a key theme in Ogunsanya’s address. He championed localized power generation and distribution networks, which can alleviate pressure on the national grid and reduce transmission losses. He cited examples such as small-scale distribution companies dedicated to specific regions, which can improve service delivery and reliability.
A Sustainable Future Built on Local Content
In his closing remarks, Ogunsanya emphasized the need for Nigeria to harness its oil and gas resources as a catalyst for broader economic diversification and energy transition. He urged stakeholders to focus on keeping value within the country, which he argued would double Nigeria’s GDP within five years. “The multiplier effect of localizing our energy value chain cannot be overstated,” he said. “It creates jobs, empowers our economy, and sets the foundation for a sustainable future.”
Ogunsanya concluded by reaffirming PETAN’s commitment to supporting Nigeria’s journey toward an energy mix that balances traditional oil and gas with renewables. “The future of Nigeria’s energy sector lies in our ability to innovate, localize, and transition sustainably. Together, we can achieve this vision.”