The Nigerian National Petroleum Company (NNPC) Limited started activities for the week with its Group Managing Director (GMD), Malam Mele Kyari, advocating for more investments in the oil and gas sector to effectively tackle the current global energy crises.
Kyari who made the call while speaking at the 23rd edition of the World Petroleum Congress held in Houston, United States, spoke on the theme: “Building Partnerships”.
He described the choice of the topic as apt because partnership remained an essential component for creating synergy in the delivery of value to various stakeholders and guaranteeing of energy security.
“Our industry is faced with a multitude of challenges, one of which is the requirement for a careful balancing of the aspirations of energy transition and energy security.
“This balance directly impacts energy investments and capital attraction for the development of fossil fuels. The lack of investment capital for oil and gas is already creating energy crises around the world.
Also read;Badagry expressway gets N15bn NNPC tax credit boost
“Who would have ever thought that the price of natural gas could sell as high as $60 per MMBtu.
“It is important to pinpoint the fact that the energy and economic security of many resources rich countries is heavily dependent on the development of their hydrocarbon resources.
“This is an important source of generating revenue, providing employment and alleviating energy poverty in these countries while ensuring that the world never lacks the energy it requires to function effectively.”
Kyari told participants at the event that the challenges facing the sector was stifling supply sources, adding that this was what was creating shortage of global energy supply.He said time had come for all players in the global oil and gas industry to collaborate in creating partnerships for the development of the technologies and funding required to achieve energy transition, energy security and value to shareholders.
The NNPC GMD further explained that the national oil companies as resource owners, needed investment to derive economic value from those resources while investors needed stable markets and regulations to make healthy returns.
He added, “Today, regulation is creating a capex gap, especially to those of NOCs where we see about 50 per cent reduction in investments.
“As technology, innovation, stiff competition for capital and market volatility continue to generate huge waves, the strength in our partnerships, as we transit, will remain our key survival strategy today and in the future.”
Speaking on the Petroleum Industry Act (PIA) 2021, he said through the legislation, Nigeria has renewed its commitment to attracting investments in the oil and gas industry.
“The Act provides the needed improvements in fiscal and governance frameworks, emphasizes transparency and accountability as well as provides a level playing field for all players.
“This is indeed a new dawn for investors as well as our National Oil Company, NNPC, that is transiting to a commercially oriented limited liability company,” he added.
Meanwhile, Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Dr Sanusi Barkindo, has said that any talks about oil and gas going into extinction in the coming decades are out of order.
Speaking at the 23rd World Petroleum Congress Plenary Session on “Energy Transition: Scenarios for the Future”, in the United States, Barkindo said that neither science nor statistics support that position.
