Oil and Gas firms raise N400 bln capital on Stock Exchange ~Onyema
Oil and gas companies operating in the Nigerian petroleum sector were able to raise N400 billion across several asset classes on the Nigerian Stock Exchange (NSE).
According to the chief executive officer (CEO) of the NSE, Oscar Onyema at a Webinar the exchange continues to provide a platform for the sector to access a global pool of capital.
“The challenges within the sector, however, present a backdrop for future opportunities for governments, regulators and operators to adopt innovation across existing verticals and pivot towards growth areas.
“The NSE on its part continues to provide a platform to access a global pool of capital, with Issuers operating in the Oil and Gas Sector raising over N400 billion across several asset classes in recent years.”
Onyema said the exchange continues to collaborate with the relevant stakeholders to provide the appropriate framework supporting diversification towards renewable energy, adding that the exchange is also well positioned to facilitate needed capital formation.
At the webinar, Timipre Sylva, Nigeria’s Minister for State for Petroleum Resources said the advent of covid-19 pandemic aggravated the volatility in the energy industry and led to a progressive decline in crude oil price.
Sylva said the impact of the pandemic has made it unavoidable for Nigerian industry players to seek innovative solutions or be forced by the tide to abdicate the stage for more resilient players who are willing and able to do things differently.
In his goodwill message, the Group Managing Director, Nigeria National Petroleum Corporation (NNPC), Mallam Mele Kolo Kyari, represented by the Group General Manager Finance, NNPC, Mrs. Rose Eshiett, highlighted the impact of the twin shocks of the COVID-19 pandemic and low crude oil prices on the Nigerian economy.
In proffering solutions, he said: “To reposition the oil and gas industry for sustainability post COVID, there must be collaboration across different dimensions: Government, industry players and particularly with the host community. Innovation will also play a crucial role in managing cost, improving efficiency and delivering the required cash flow for reinvestment and expansion.”