The Nigerian National Petroleum Company Limited (NNPC) on Monday insisted that it would continue to develop Nigeria’s gas resources despite the exit of International Oil Companies (IOCs) from the country due to the global push for energy transition and net carbon zero target.
Speaking in Abuja at the ongoing Nigeria International Energy Summit 2022, NNPC Group Managing Director, Mele Kyari, said the state oil firm work with its partners in facilitating the process in Nigeria regardless of the massive investment drop in fossil fuel projects amidst oil firms exits from Nigeria.
“Companies are divesting. They are leaving our country literally, that’s the best way to put it. But they are not leaving because opportunities are not there.
“It is because companies are shifting their portfolios where they can add value, and not just that, where they can also add to the journey towards net carbon zero production. We understand this very perfectly.
“But we can’t afford not to realise that this country must benefit from the realities of today,” Kyari said.
“This country has the largest reserves of gas and crude oil including condensates, and therefore there’s simply no way you can transit to a net carbon zero situation without necessarily having a transition fuel.
“It is very clear to the world that gas will be the transition fuel. And that can’t happen except you are able to put in on the ground, convert it to a usable form and make it available to its users.”
The NNPC helmsman observed that “you can’t do that except you find financing for it. And today we all understand the level of underfunding in the fossil fuel industry.”
Kyari noted funding for fossil fuel projects had dropped by about 50 per cent when compared to what it was about 10 years ago.
“And the impacts are already showing. There’s a clear demand and supply gap that we are seeing today and that’s why we are seeing the $104 oil in the market today,” he stated.
“No one has invested significantly in the last 10 years and more so in the last five years. And it is much more difficult in our country today because we are not able to invest in the fossil fuel industry in the last five years to the extent that we are seeing the effects of what that really means,” the NNPC boss stated.
Last week, Seplat Energy announced its acquisition of the some assets of Mobil Producing Nigeria at $1.82 billion as some of the IOCs downsize their presence in the country.