The Group Managing Director of the Nigerian National Petroleum Company Ltd, Mr Mele Kyari has said that more investments are needed in the oil and gas sector to effectively tackle the current global energy crises.
Kyari made the call while speaking at the 23rd edition of the World Petroleum Congress held on Wednesday in Houston, United States.
The NNPC GMD who spoke on the theme “Building Partnerships,” described the choice of the topic as apt because partnership remain an essential component for creating synergy in the delivery of value to various stakeholders and guaranteeing of energy security.
He said, “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 attracting capital for the development of fossil fuels. The lack of investment capital for oil and gas is already creating energy crises around the world.
“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 is stifling supply sources, adding that this is what is creating shortage of energy supply to the world.
He said time has 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 are required to achieve energy transition, energy security and value to shareholders.
The NNPC GMD explained further that the National Oil Companies as resource owners, need investment to derive economic value from those resources while investors need 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 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.
Kyari emphasised the fact that building mutually beneficial partnerships will therefore continue to be the key leverage in navigating global market uncertainties especially as stakeholders in the sector transit into a carbon neutral energy company.
“We also believe that building partnerships that work for everyone is key to global prosperity and that should be the main focus of Global Oil and Gas Industry,” he concluded.