An energy expert, Mr Ado Oseragbaje, has emphasised the crucial role of Environmental, Social, and Governance (ESG) practices in ensuring the long-term sustainability of Nigeria’s oil and gas industry.
Osaragbaje said this on Tuesday, August 6, 2024, at the ongoing Nigeria Annual International Conference and Exhibition (NAICE) organised by the Society of Petroleum Engineers (Nigeria Council), in Lagos.
The theme of the SPE 2024 is “The Outlook of the Nigerian Oil and Gas Industry, Post IOC Divestment and Exits: Challenges and Opportunities”.
Asaragbaje, Chief Executive Officer, Heritage Energy Operational Services Ltd., said that it became imperative for oil companies to comply with ESG factors.
Represented by Mr Sola Adebawo, General Manager, Government, Joint Venture and External Relations, Heritage Energy Operational Services Ltd., he added that companies should also adopt sustainability as a default way of operating.
This, he noted, would allow them to be able to explore and produce hydrocarbon in Nigeria.
The CEO reiterated the company’s commitment to ESG practices, saying, “We are committed to operating in an environmentally responsible, socially inclusive and ethically sound manner.
“Our ESG charter outlines our core principles and approach to Environmental, Social and Governance matters and serves as a foundation for our ESG strategy and our guide to operating in a responsible and sustainable manner.
According to him, Nigeria has a prime place in the global energy landscape.
Asaragbaje added that if some of the over 200 TCF of gas was sustainably produced, it would help the country through the clean energy transition and enable it to fill the gap left by declining oil.
“Gas will play a huge role in the future and at Heritage Energy, we are planning to ensure a secured, affordable and sustainable gas production process.
“This is through our gas monetisation programme to meet some of the growing demands for gas,” he said.
Asaragbaje said that ESG was the way to go because Nigeria and several other African countries had committed to net zero by 2060 and restricting methane emissions.
According to him, they also agreed to halt and reverse forest loss, phase out coal, and end international financing for fossil fuels.
He said that any company that did not make ESG factors intrinsic to its operations would not be able to survive the legislation by the government, in line with its climate change commitments.
He added that ESG was all about sustainability and it had been defined by the United Nations as that development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
“This concept of sustainable development aims to sustain economic advancement and progress while protecting the long-term value and integrity of the environment.
“This can only be achieved through the integration of economic, environmental, and social concerns throughout the decision-making process for oil and gas exploration and production.
“We need the money from oil and industries to drive our development no doubt.
“However, as we undertake our businesses, regardless of our field of human endeavour.
“We believe that strong ESG practices are not only essential for protecting the environment and supporting our communities but also contribute to our long-term business success,” Osaragbaje said.
Heritage Energy is the operator of the OML 30 Joint Venture between NNPC E & P Ltd., (NEPL) and Shoreline Natural Resources Limited (SNRL).
By Yunus Yusuf
