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Nigeria To become Net Exporter Of Petroleum Products By 2023—NNPC

The Group Managing Director of the Nigerian National Petroluem Company Ltd, Mr. Mele Kyari has said that with some of the initiatives being implemented by the Corporation, Nigeria will become a net exporter of petroleum products by 2023.

Kyari said this in his industry keynote address which was delivered at the Nigerian Day-Energy Forum
held at the side-line of the 23rd World Petroleum Congress in Houston, United States.

Kyari who was represented at the event by the Group Executive Director, Upstream, Engr. Adokiye Tombomieye, spoke on the theme, “The new realities for the world oil and gas industry.”

The event is coming at a time when the world is confronted with multiple challenges such as resurgence of COVID-19 pandemic and the fast-spreading Omicron variant; vaccine hesitancy in some Western capitals and vaccine insufficiencies in some developing countries; climate change on the front burner
and rising geopolitical tensions

These challenges are more manifested in some parts of the world than in others.

But their collective impacts when superimposed on the drive for accelerated energy transition is enough to paint the new reality that confronts the global oil and gas industry.

The GMD said while the COVID-19 pandemic has remained a hurtful experience that shocked the global economy and the oil industry, negative financial position and poor liquidity experienced during the heat of the pandemic has made funding of both existing and new projects impossible as companies cut their spending to survive.

However, he said the success of vaccine development has renewed world confidence to reopen the economy once again.

This reopening, he noted, has increased oil demand with prices surging above pre-pandemic levels after crashing to a single digit due to over supply and demand destruction in 2020.

With the opening of major economies and the rebound of oil demand, Kyari said prices have escalated to three-year high due to disproportionate supply.

As a National Oil Company, Kyari said the NNPC is committed to achieving carbon neutrality using Nigeria’s abundant natural gas resources as a low carbon alternative that will help improve access to energy to power the Nigerian economy.

In the midst of these growing uncertainties, he told participants at the event that building mutually beneficial partnerships has remained the best choice that stakeholders can make to keep their respective visions alive.

Building on this convergence, the NNPC GMD said Nigeria as a key player in global oil industry has, with the enactment of the Petroleum Industry Act 2021, taken major step to address challenges associated with fiscal, security and cost competitiveness.

On the other hand, he stated that the Nigerian Upstream Cost Optimization Programme (NUCOP) is working with Operators and Service Contractors to challenge cost of operations and increase profitability and growth in the Nigerian oil and gas sector.

He said, “Adopting broader viewpoints based on inclusive consensus within policies and policy objectives is therefore paramount to ensuring global energy security and sufficiency as the world transit to cleaner energy.

“To avoid introducing shocks to global energy security, transition to clean energy must be gradual and on case-by-case basis. Africa needs an energy transition that factor African development priorities.

“With PIA 2021, Nigeria is focused on improving good governance, transparency and accountability in order to create a favourable business climate that will support Investment across the energy value chain.

“The PIA has set the ball rolling for the transition of NNPC to a fully commercial limited liability entity. This provides more opportunities for partnership and the growth both locally and internationally.

“As an Integrated National Oil Company, NNPC understands that making progress means working together, will continue to build rewarding partnerships and Networks that align with vision and objectives.

“We are expanding our natural gas infrastructure footprint to improve domestic utilization of low-carbon fuel, improve power generation and stimulate the growth of gas-based industries.

“We therefore invite interested investors to explore the countless investment opportunities in the Nigeria’s Energy Sector.

” Our expectations include enterprise relationships that will facilitate gradual transition to low-Carbon, by bringing capital and Green Technology to support our aspirations of scaling up oil and gas production to achieve universal access to affordable energy.

“We are progressing with various initiatives to achieve domestic sufficiency of petroleum products. Our plan is for Nigeria to become a net exporter of petroleum products by 2023.”

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