Masdar, Abu Dhabiís multi-faceted future energy initiative wholly owned by the Mubadala Development Company, and the Nigerian National Petroleum Corporation (NNPC) today reached agreement to identify and develop carbon emissions reduction projects in the oil and gas sector in Nigeria, under the Kyoto Protocolís Clean Development Mechanism (CDM).
"This strategic partnership reflects our commitment to develop projects that promote sustainable growth in the oil and gas industry on a global scale," said Dr. Sultan Al Jaber, Chief Executive Officer of Masdar. "Reducing carbon emissions in Nigeria, namely those associated with gas flaring reduction will have a significant impact in the fight against climate change."
Gas flaring, the process of burning off unwanted flammable gas during oil production, is a significant source of greenhouse gas emissions and a contributor to climate change.
"Nigeria is committed to phasing out the practice of gas flaring and reducing carbon emissions overall," said Mr. Mohammed S. Barkindo, Group Managing Director, NNPC, represented by Dr. Ayo Balogun, Group General Manager, New Businesses. "Driving a sustainable and environmentally friendly oil and gas industry is of prime interest to Nigeria, and NNPC is happy to work with Masdar to study and develop related carbon reduction projects."
In addition to the reduction of gas flaring, Masdar and NNPC will target and evaluate other types of carbon reduction projects namely those related to the clean and efficient use of energy. Emission reductions resulting from the projects will be monetized in the form of carbon credits or Certified Emission Reductions under the CDM framework of the Kyoto Protocol.
A formal signing ceremony will take place in Abuja, Nigeria.