The Group Managing Director of Nigerian National Petroleum Company (NNPC), Mele Kyari, has advocated more investments in the oil and gas sector to effectively address the looming global energy crisis.
The NNPC boss, who spoke during the week at the 23rd edition of the World Petroleum Congress held in Houston, United States, said the need to prepare for the crises ahead was necessary, in order to grow the economies of countries globally.
Kyari 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.
“The 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,” he said.
The NNPC’s GMD said that the challenges facing the sector were stifling supply sources, adding that this was what was creating shortage of energy supply to the world.
He said the 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 that were required to achieve energy transition, energy security and value to shareholders.
“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 are 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,” he said.
He explained further 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 said: “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 attract ing investments in the oil and gas industry.
The Act provides the needed improvements in fiscal and governance frameworks, emphasizes transparency and o 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 said.