NNPC advocates increased oil & gas investments for global energy security

*Mele Kyari, Group Managing Director and CEO of Nigerian National Petroleum Company (NNPC) Limited, urges stakeholders in the oil and gas sector to make more investments, as lack of investment capital is fast creating energy crises around the world

Isola Moses | ConsumerConnect

For delivery of sustainable value to various stakeholders while guaranteeing energy security, Malam Mele Kyari, Group Managing Director and Chief Executive Officer (GMD/CEO) of the Nigerian National Petroleum Company (NNPC) Limited, has called for more investments in the oil and gas sector of the economy.

Malam Kyari, who stated this while speaking at the recent 23rd Edition of the World Petroleum Congress held in Houston, United States (US), said this measure would effectively tackle the current global energy crises.

Photo: Forbes

ConsumerConnect gathered the NNPC GMD/CEO spoke on the theme: “Building Partnerships”, and  described the choice of the topic as apt because partnership remained an essential component for creating synergy in the delivery of value to several stakeholders and ensuring of energy security.

Kyari 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 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.”

The NNPC Chief also noted: “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.”

In terms of far-reaching impact of the current challenges in the oil and gas sector, Kyari at the event stated the challenges facing the industry are stifling supply sources.

He affirmed that is the reason the shortage of energy supply across the global community.

However, he stressed that the 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 were required to achieve energy transition, energy security and value to shareholders.

National oil companies as resource owners need investments to derive economic value from those resources, while investors  also need stable markets and regulations to make healthy returns on their investments.

The NNPC GMD/CEO said: “Today, regulation is creating a capex gap, especially to those of NOCs where we see about 50 percent 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.”

Petroleum Industry Act (PIA) 2021 and commitment to improved investments

On the Petroleum Industry Act (PIA) 2021, Kyari also said through the legislation, Nigeria has renewed its commitment to attracting more investments in the oil and gas industry in the West African country.

He noted that the Act provides the needed improvements in fiscal and governance frameworks, and emphasizes the importance of transparency and accountability as well as provides a level-playing field for all industry players.

Kyari as well stated:  “This is, indeed, a new dawn for investors as well as our National Oil Company, NNPC, that is transitioning to a commercially oriented limited liability company.”

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