April 15, 2024

Kyari refutes allegations of anti-competitive practices, says ” NNPC Ltd is ready to compete with new, existing players”

Oredola Adeola

 

Mele Kyari, the Group Chief Executive Officer (GCEO) of Nigerian National Petroleum Company (NNPC) Limited, has denied engaging in any anti-competitive practices against major players in the Nigerian oil and gas industry, in reaction to concerns raised among industry insiders, some of whom have alleged the national oil company of unfair practices, favoritism, lack of transparency and unfairness in major oil deals.

 

Speaking at the official opening ceremony of the Nigeria Oil and Gas Week, #NOGEnergyWeek, with the theme “Redefining Nigeria’s Energy Landscape for a Sustainable Energy Future,” the GCEO expressed the readiness of NNPC Limited to raise financing for gas infrastructure and other deals in the country’s oil and gas sector.

 

 

The NNPC Limited, formerly a government-owned corporation, was transformed into a limited liability company in July 2022, thereby transforming into a commercial entity without relying on government funding and direct controls.

 

The GCEO emphasized that NNPC Limited operates as a private company, despite being 100 percent owned by the Federal Government, adding that it is committed to going public through an initial public offering (IPO) as a CAMA company, and will declare its shares to the public. and sell part of its equity.

 

He said, “NNPC Limited aims to facilitate business and partnerships in all aspects of the oil and gas industry, including upstream, downstream, midstream, and renewables.

 

“The national oil company is an agent of the state in Production Sharing Contracts (PSC), ensuring that companies deliver value and compensating NNPC with 40 percent of profit oil,” Kyari acknowledged.

 

The GCEO highlighted the importance of fixing infrastructure and addressing the unfavorable fiscal environment that hindered the delivery of gas infrastructure. According to him, the passage of the Petroleum Industry Act (PIA) in August 2021 has provided a more supportive business environment for sustainable operations in the oil and gas industry.

 

He also noted that the NNPC Limited is committed to delivering gas for the domestic market and export to other countries.

 

He said, “We recognised the global demand for gas and the long-term relevance of liquefied natural gas (LNG). The NNPC Limited aims to create prosperity, value, and integration along the pipeline corridor, including plans to transport gas from Brass through 11 West African countries into Morocco and onward to Europe.

 

The NNPC GCEO, therefore, noted that the national oil company welcomes new and existing players in the industry and encourages investment and competition. He acknowledged excess capacities existing in the country’s petroleum industry and therefore invited oil and gas companies in Nigeria to convert existing infrastructure for their use, especially in gas sector.

 

 

He pushed for decarbonization, compliance with net zero goals, and the energy transition plan are crucial global efforts. He added that the drivers of the country’s energy future are affordability, accessibility, and sustainability.

 

He said, The NNPCL is committed to expanding the liquefaction capacity of Nigeria LNG and enabling the availability of LPG as a cooking fuel and CNG as an alternative fuel for automobiles.

 

“Bridging the skilled manpower gap is also a priority, and the decision to end petrol subsidy by the Federal Government has paved the way for positive change in the sector while freeing up capital for powering the sustainable supply of energy.

 

“Nigeria faces challenges in achieving universal energy access, with a significant portion of the population lacking access to electricity.  We can only achieve universal energy access using a country’s energy sources including petroleum reserves, natural gas, hydroelectricity, and solar power.