Mr. Mele Kyari, the Group CEO of NNPC Limited, emphasized on Monday 10th of July 2023 that the company no longer writes rules regulating the oil and gas industry in Nigeria. With the implementation of the Petroleum Industry Act 2021 and the incorporation of NNPC Limited under company law, the national oil company has transformed into a commercial and competitive player alongside international oil companies (IOCs) and other indigenous players in the industry.
Speaking at the Nigerian Oil Gas Energy Week in Abuja, Kyari stated that NNPC Limited will now bid and compete for all oil and gas assets in Nigeria and other parts of the world, just like any other company. He highlighted the significant market potential in Nigeria, where around 70 percent of the population lacks access to clean cooking fuel and over 50 percent lack access to electricity.
Kyari acknowledged that Nigeria’s energy challenges stem from multiple factors including availability, affordability, and sustainability. However, he emphasized that NNPC Limited is now a competitor and operates as a private sector entity, despite being currently wholly owned by the government. He also revealed plans for an Initial Public Offering (IPO), stating that once part of their equity is sold, the company will not be any different from other companies.
While NNPC Limited still facilitates business and maintains partnerships that contribute to over 80 percent of the country’s oil and gas production, Kyari noted that assets in production-sharing contracts (PSCs) are no longer part of NNPC Limited’s balance sheet. The company now operates as an agent of the government and receives a fee.
Ambassador Gabriel Aduda, the Permanent Secretary of the Federal Ministry of Petroleum Resources, further shared that the Federal Government sees natural gas not only as an energy transition fuel but also as a destination fuel to provide energy access and power the economy. He stressed the importance of Africa setting its own pace and agenda for energy transition, highlighting the continent’s progress in renewable energy.
Mr. Haitham Al Ghais, Secretary General of OPEC, addressed the need for continued investment in oil production, considering that over 750 million people worldwide still lack access to electricity. He cited OPEC’s Oil Market Outlook for 2024, which forecasts a 23 percent growth in oil demand. OPEC will continue working with its members to promote investment in the industry.
During his presentation, Mr. Omamofe Boyo, Deputy Group CEO of Oando Plc, emphasized the need for significant investment in gas infrastructure in Nigeria, estimating a requirement of $15 to $20 billion. He noted that relying solely on the government for funding is not feasible. Nigeria holds significant gas reserves, valued at around $800 trillion, making it a dominant player in the African gas supply industry and the ninth largest globally.
