Mele Kyari, the CEO of Nigeria’s state oil firm, says the new Nigerian National Petroleum Corporation (NNPC) Ltd formed by the new oil law, will debut in July and aims to become the world’s fifth biggest gas producer.n
In an address on Wednesday at the Nigerian International Energy Summit in Abuja, Kyari said the corporation is planning to create a gas hub that will serve Nigeria and neighbouring countries.
He said this is hinged on the completion of the landmark Obiafu-Obrikom-Oben (OB3) gas pipeline project expected to help commercialise a substantial volume of the nation’s natural gas.
The OB3 pipeline project is expected to commercialise over 2 billion cubic feet of gas per day and generate billions in revenue as well as create thousands of employment opportunities for Nigerians.
It is planned to feed the Asa North-Ohaji South, ANOH, gas project, one of the largest greenfield gas condensate development projects, that will produce 600 million standard cubic feet of gas per day, an equivalent of approximately 2.4 gigawatts of electricity for the country.
The new NNPC, according to Kyari, will be technology-enabled and collaborate with industry operators to deliver energy security for Nigeria.
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“NNPC by law is the only company mandated to guarantee energy security for Nigeria,” said Kyari.
He explained that this does not just mean providing petrol and refined petroleum products but guaranteeing energy for Nigeria in all its forms.
“It must drive the journey to renewables, clean energy and net-zero emissions targets for Nigeria even as we drive prosperity for our country.
”The new NNPC is expected to drive economic growth in the country and become an enabler business and more importantly to support all Nigerians,” Kyari said.
Kyari said the company had been challenged by the slow pace of reforms in the sector. Until the new Petroleum Industry Act was signed last August, the country had relied on the 1967 Petroleum law.
Since 1960 there has been little change to Nigeria’s petroleum laws despite several cycles of boom and bust in the sector.
Kyari said this has stemmed investment flows into the Sub-Saharan African market. According to Kyari, in the last ten years, real investment inflows into the subcontinent for oil production and related activities has hovered around $3bn every year.
He said the absence of the right fiscal structure and regulatory stability has not only stemmed investments, but it has also hindered the ability to plan and predict what is next.
“Many of the oil and gas infrastructures look like museums,” he said.
He said the NNPC would not only be an oil company but would also go into renewable energy development and drive Nigeria’s energy transition journey.
