Mr. Mele Kolo Kyari, GMD, NNPC
…AS NAEC HOLDS ANNUAL CONFERENCE AND AWARDS
By Felix Douglas
The new Group Managing Director, GMD, of the Nigerian National Petroleum Corporation, NNPC, Mele Kolo Kyari, has stated that his administration has begun to make strategic efforts towards driving a new thinking and direction in the NNPC, which, according to him, will ensure more transparency, accountability and sustained excellent performance.
Kyari, who stated this during his keynote address at the recent National Association of Energy Correspondents, NAEC, annual conference and awards, noted that the objectives of the ongoing repositioning of the oil corporation are crucial ingredients in the nation’s quest towards holistic development.
While disclosing that he had accepted NAEC’s invitation because he considered it a great honour, as well as the fact that he had high regard for the association, the NNPC GMD averred that the theme of the conference, “Harnessing Oil and Gas Potentials for National Development”, was apt, considering the urgent need to fully harness and utilize Nigeria’s hydrocarbon resources for the benefit of the citizenry.
Taking the audience on an expository discourse, Kyari said: “Before we delve into the theme proper, perhaps, it is pertinent that we first have an overview of the Nigerian Oil and Gas Industry. Petroleum has been the world’s significant source of commercial energy for many decades and is widely projected to maintain this status in the foreseeable future.”
The NNP helmsman revealed that Nigeria currently has about 37 billion barrels of proven plus probable 2P oil reserves as well as 192Tcf of 2P gas reserves, adding that the country is Africa’s leading exporter of LNG and ranks 4th in the world, after Qatar, Australia and Malaysia.
He further stated that the country’s oil industry currently produces about 2.2m barrels of crude oil per day, the bulk of which is exported to global markets.
“The industry is the major foreign exchange earner and source of income to the government. It is the bedrock and foundation for sustainable national development, with the potential to support development at all levels of government,” Kyari said.
While bemoaning the fact that for many years, Nigeria’s economy had remained oil-based, the NNPC boss noted that this has, in a way, made her vulnerable to the vagaries of global oil price and the attendant but avoidable adverse economic consequences.
He was however quick to add: “While it might be human to brood over certain issues, it is pertinent that we remain forward-looking and steadfast. Consequently, I dare say that our concerns should be, among others, on what we need to do to harness Nigeria’s oil and gas potentials towards national development, more so, in the face of mounting challenges facing the Industry.”
Kyari, whose appointment was confirmed by President Muhammadu Buhari on June 20, equally stated that the NNPC was working tirelessly to achieve set objectives.
“Today, with our partners, we are driving the national aspiration to grow the national reserves to 40billion barrels by 2025 and improve crude oil production to 3million barrels/day during the period. To achieve these targets, we are not oblivious of the fact that huge investment is required across the entire value chain.
“The country has to open up the midstream, complete all critical gas development projects targeted at delivering about 3Bscfd to gas market, ensure the closeout of investment decision on NLNG Train 7 and improve domestic utilization to boost power generation and industrial growth.
“The significance is the position of gas as a catalyst for national development. He urged stakeholders to work hard to ensure that, using the realistic government policies, gas is fully utilized domestically to power industries and fast track the nation’s march towards industrialization,” he said.
Kyari, who disclosed that Nigeria is still a net importer of petroleum products due to the current state of its refineries and the long absence of private investment in the refining sector, emphasised that the nation requires more investment to revamp and expand its domestic refineries and associated infrastructures to support the growth of the downstream sector and guarantee energy security to the nation.
He asserted that, in this respect, the NNPC, under his purview, would leave no stone unturned to ensure the country’s 445,000-barrel refineries in Port Harcourt, Warri and Kaduna work to optimum capacity.
“The corporation is also progressing with the establishment of condensate refineries to fast-track domestic supply of petroleum products. In the same vein, the corporation would support the actualization of the 650Kbbl/day Dangote Refinery, as well as other private initiatives along this line. NNPC’s plan is for Nigeria to become a net exporter of petroleum products by 2023,” Kyari said.
The former representative of Nigeria at the Organisation of Petroleum Exporting Countries (OPEC), also hinted that NNPC is leveraging on technology and innovation to achieve the goal of building an energy company of global excellence, ready to positively advance the nation’s economy.
According to him, “Much as oil and gas continue to play a leading role in the Nigeria’s energy mix. We must also utilise the ample opportunities presented by the ever-burgeoning renewable energy landscape, most of which are in tandem with government’s diversification aspirations and employment potentials.”
He further said that as the country aspires to achieve huge goals of growing reserves, expanding the frontiers of its production and exploring the renewable energy landscape, the oil industry requires an enabling environment to attract the right investment.
He added that the Petroleum Industry Bill (PIB) must run its full cycle in this 9th National Assembly, implying that there is absolute need to fast track its enactment processes.
“Related to this is the fact that there is need to build on the security of the nation’s industry assets across the country. As stakeholders in the commonwealth, Nigeria must ensure it keeps away miscreants from its pipelines to pave the way for efficient operations in the sector,” Kyari said.
He revealed that there is a lot of optimism in these aspirations and the quest to progress the sector, stressing that the government of President Muhammadu Buhari is determined to deliver a stable fiscal environment to support its quest to harness the nation’s oil and gas potentials towards national development.
In his words, “Without development, achieving all these aspirations will remain a pipe dream if stakeholders do not collaborate and work together in an atmosphere that is beneficial to all stakeholders and emplaces Nigeria on the path of growth and development.”
Therefore, the NNPC GMD also seized the occasion to call on all industry stakeholders to collaborate more towards the common goal, empasising that “there is no better time to work together than now.”
Noting that the position of the oil and gas industry in Nigeria’s economic realm is an enviable one, Kyari further charged stakeholders, “Let us all see ourselves as partners in progress. Let us continue to work together to take the best decisions that will truly catapult our nation’s to march towards growth, prosperity and national development. The teeming Nigerian youth have high hopes in us.”
Stakeholders were of the view that the GMD’s remarks on the state of the oil industry in Nigeria vis-à-vis his transparency and accountability drive will enhance the industry.
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