Mele Kyari (CEO of the Nigerian National Petroleum Company) says that the recently passed Petroleum Industry Act will increase business investment in Nigeria.
This assurance was given by Kyari at Wednesday’s World Petroleum Congress in Houston, Texas.
According to the News Agency of Nigeria, Kyari spoke on the topic tagged “Building Partnership”, which Kyari described as an important aspect of the operating model of the oil industry.
According to the NNPC boss, “Our industry has been struggling in Nigeria’s fiscal environment. This includes issues around investors investing money and getting their returns with the returns they deserve. There is no fiscal stability or sanctity of contracts.
“This is the result of our new law. It brings all these into focus to ensure that the fiscal environment is very competitive and that there are world-class practices that provide stability and security.
“We are proud to have a strong partnership that works for us today; we also look forward to more partnership.”
He said, “Partnerships are required now for the energy transition in an order and manner that will ensure energy security.”
Kyari stated that Nigeria and the NNPC have a long history in contributing to global energy security
He said that Nigeria had reaffirmed its commitment to attract investments in the oil-and-gas industry through the recent passages of the Petroleum Industry Act 2021.
He stated that the Act provided the necessary improvements in fiscal governance frameworks, emphasizes transparency accountability and provides an even playing field for all.
He noted that this was a great opportunity for investors and our National Oil Company (NNPC), which is transitioning to a commercially oriented, limited liability company.
Today Kyari spoke out about the challenges facing our industry. He stated that today’s industry faces a variety of challenges. One of these is the need to balance the aspirations for energy security and energy transition.
He stated that oil and gas shortages are already causing energy crises all over the globe.
He asked, “Who would’ve thought that natural gas prices could reach as high as 60 US dollars per million British Thermal Units (MMBtu)?”
The NNPC boss, on energy and economic safety, said that it was important to emphasize the fact that many resource-rich countries depend on the development and production of hydrocarbon resources for their energy and economic security.
He stated that this was an important source for generating revenue, creating employment, and alleviating energy poverty within these countries. It also ensures that the world has the energy it needs to function efficiently.
He said that the result of all of these factors is the stifling supply sources, which in turn creates a global shortage of sustainable energy.
“We have seen the benefits of building sustainable partnerships in the Industry. One recent example is the alliance of Canada’s oil-sands producers to reach net-zero emissions. This was made possible by the increasing pressure to meet the energy transition goals.
“There is a need for sustainable partnerships between the oil and natural gas industry, host governments, and host communities in order to ensure compliance with Environmental, Social, and Governance principles.
Kyari stated, “In fact, all the players in the global oil-and-gas industry must collaborate to form such partnerships for funding and technologies development required to achieve energy transition and ensure energy security and add value to shareholders.”
He stated that resource owners such as the NOCs need to invest to extract economic value. Investors need to have stable markets and regulations in order to reap healthy returns.
He said that regulation today is creating a capital spending gap, particularly to NOCs, where we see around a 50% reduction in investments.
He stated that technology, innovation and stiff competition for capital will continue to create huge waves. However, our survival strategy today and into the future will be based on the strength of our partnerships as we transit.
He stated that “Building mutually-beneficial partnerships will continue to be our key leverage when navigating global market uncertainty, especially as we transition into a carbon-neutral energy company.
“We believe that global prosperity is possible by building partnerships that work for everyone. That should be the primary focus of the Global Oil and Gas Industry.
NAN reports that over 5,000 people from more than 70 countries attended the 23rd World Petroleum Congress (WPC), which began on Dec. 6.