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Nigeria Signs Deal with U.S, Deloitte to Reduce Gas Emissions from OML 34

The Nigerian National Petroleum Company Limited (NNPCL) has signed a deal with the United States Department of State and international management consultancy firm Deloitte on greenhouse gas emissions from OML 34.

Olufemi Soneye, the Chief Corporate Communications Officer, NNPCL, said in a statement on Monday that the project which is at its conceptual stage was the focus of a three-day Technical Assistance on Oil and Gas Sector Global Methane Abatement and Decarbonisation Workshop, which kicked off at the PTDF Towers in Abuja, Nigeria.

“NNPC Ltd is working in collaboration with the US Department of State and Deloitte to meet its net-zero carbon goals by embarking on a project aimed at reducing the emission of methane and other greenhouse gases from its upstream operations.,” said Soneye.

Methane Abatement Implementation

The project aims to implement methane abatement plans and strategies that are consistent with international leading practices and standards.

Methane is a potent GHG that contributes to global warming and climate change.

According to the International Energy Agency (IEA), the oil and gas sector is the largest source of anthropogenic methane emissions, accounting for about 25% of the total.

The workshop was a follow-up of the July 2023 capacity building Training on Methane Baselining and Organisational Design and the Development of a Methane Technology Evaluation Framework.

Key Elements Discussed at Workshop

The workshop aimed to define the critical success elements for the Methane Abatement Pilot Project Implementation, Scaling and Financing.

Some of the key elements discussed at the workshop include:

– Determining the scope of the project and the expected outcomes and benefits

– Establishing a baseline for methane and carbon emissions from the selected operation sites

– Collecting relevant data on the selected sites and analyzing the sources and levels of methane emissions

– Helping the Deloitte consultants understand the operations and expectations of NNPC Ltd. and providing feedback and recommendations

– Identifying the best available technologies and practices for methane abatement and decarbonisation

– Developing a roadmap and action plan for the pilot project implementation and scaling

– Exploring the potential financing options and incentives for the project.

Who are the Project Sponsors?

Participants at the workshop unanimously selected OML 34 located onshore in Western Niger Delta as the operation site for the pilot stage of the project.

OML 34 has the Utorogu and Ughelli Fields, which are among the largest gas fields in Nigeria.

The pilot project will test the feasibility and effectiveness of methane abatement and decarbonisation measures at these fields.

Participants were drawn from relevant NNPC Ltd.’s subsidiaries and Departments such as Exploration & Production; New Energy; Gas Infrastructure; Health, Safety, and Environment, as well as the Ministry of Petroleum Resources, and Federal Government agencies like the National Council on Climate Change.

The workshop also featured presentations and discussions from experts and stakeholders from the U.S., Deloitte, and other international organizations.

The project technical training is sponsored by the United States Department of State’s Bureau of Energy Resources’ Energy and Mineral Governance Programme (EMGP).

EMGP is a global initiative that supports partner countries in improving their energy and mineral governance, transparency, and accountability. It also also helps partner countries to advance their energy transition and climate goals by promoting clean energy technologies and practices.