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Giving his keynote address at the Nigeria Oil and Gas Conference held in Abuja, the Group Managing Director (GMD) of Nigeria National Petroleum Company Limited (NNPC), Mallam Mele Kolo Kyari, invited Nigerians and other international guests to the unveiling of its transition to a private company which will be done by the substantive Minister of Petroleum Resources, President Muhammadu Buhari in July 19, 2022.
Kyari disclosed that NNPC limited will be positioned as the best indigenous company in Africa. Thus, the company’s new slogan will be “ENERGY FOR TODAY, ENERGY FOR TOMORROW”
According to Kyari, petroleum will still be available with 58% of total energy mix for a long time in the oil and gas industry.
“The realities of today is to bring new forms of energies. Industry operators look forward on how to migrate to reduce carbon footprint and how to seek for fund to manage the industry to get value from it.”
He noted that there has been resistance across the globe on funding of fossil fuel before the Russia/Ukraine war which poses a challenge to energy and countries are forced to take solace on unconventional means of energy.
“In any aspect, the world needs to talk to each other and Nigeria is engaging with its partners in European Energy Commission, other agencies and continental institutions that are involved in energy conversation.
“It must be accecpted that gas is transition fuel of choice which is the reality and therefore, that funding must come first. We are 3rd in gas production but we should be first. As number one, we should also be first in reserves and asset, hence, we need the right financing and value to produce them. We should be the number one producer of oil with reserve in Africa but today we have challenges.”
The NNPC GMD stated that there is a natural decline in the oil industry today and “when declines comes, it will be difficult to find money to fund the sector. Nobody is drilling today except NNPC and few other franchise. If you don’t drill and decline continues, we are not going to see only effect of theft but the effect of lack of investments.”
He said shortly before Covid-19, there was undersupply in the market and stakeholders loose sight of the reality that lack of investment for the past five to ten years have started manifesting in the market. The world is trying to bring back production which requires funding and time.
This is the time for industry players to re-set financial strategies to ensure that multinational and indigineous companies collaborate and work together by putting resources in the oil industry.
As means of diversification, NNPC Limited is enhancing Electric Vehicles (EVs) and encouraging the use of tricycles also known as ‘keke NAPEP’ “the conversation around EVs for us is real and it is happening,” Kyari added.
Amazingly, 80% of Nigerians today do not have access to clean cooking fuel and Liquefied Petroleum Gas (LPG) while 28% of Nigerians do not have access to electricity and the gap is huge. Thefore, “we can’t fill it up with the scale of investment in renewables because it is not practical.”
Thus, there is need to put more resources in gas investment by building infrastructure which NNPC is currently doing to enhance 5 billion scuff of gas into the domestic market. Nefarious activities in the oil sector will decline with 80% access to clean fuel and electricity.
Kyari added, “This is critical for us and our conversation with our partners, we will continue to emphasise and our key role is to make sure gas is available to our country and Europe. Fortunately for us we have gas. Recent engagements show that the world is crying for our gas which is an opportunity for us in the industy to make the money and create the prosperity of today.
“What is very fundamental is that NNPC is here to be the partner of choice and we will be the biggest capitalised company in Africa and a partner that will focus on commercial value of every engagement that we do.”
“NNPC Limited will be the biggest indigenous oil and gas company and therefore there is no distinction between NNPC and the rest of our partners in the oil and gas space.”
“We are going to acquire the best of asset that is possible to build our base.”