Group Chief Executive Officer (GCEO) of Nigerian National Petroleum Company (NNPC) Ltd, Malam Mele Kyari has said that resolving the lingering security challenges in the oil- rich Niger Delta region will attract more investments to Nigeria’s oil and gas sector and boost the country’s oil production.
Kyari made the remarks on Thursday in Lagos, at the Association of Energy Correspondents of Nigeria (NAEC) Strategic International Conference, with the theme, ”Energy Transition: “Shaping the Future of Nigeria’s Energy Industry, an Appraisal of PIA, Evolving Benefits and Challenges’.
He said the NNPC’s target was to grow oil production and domestic refining capacity to ensure energy security, but these targets had not been met owing to security issues.
The NNPC boss however stated that the Company was working with security agencies and other stakeholders to address the issue of oil theft which was hindering Nigeria’s ability to meet its Organisation of the Petroleum Exporting Countries (OPEC) quota.
“As you are all aware, we’re doing everything possible to contain it. Security is a major challenge regarding crude oil theft. Yes, we understand today that our production is very low because of the security situation in the Niger Delta.
“But more than anything, it cannot stop us from investing in the assets and therefore you can’t have decline. Also, you’re unable to put money into it and expect to have high production.
“Resolving the security challenge will surely bring back investment and will also optimise the current capacity that we have… and we can easily come to 2.1 million barrels of oil per day,” Kyari added.
The NNPC boss said though financing was a huge challenge for the oil and gas sector, many institutions now recognised gas a clean energy and were willing to invest in development of Nigeria’s abundant gas resources.
According to him, the Nigerian government is investing in infrastructure to drive the energy transition just as it is engaging with the investment community to secure financing.
Kyari said NNPC had successfully resolved the disputes it had with the international oil companies (IOCs), regarding the upstream assets to further drive investments in the sector.
“We have signed off the Dispute Settlement Agreement with our partners in the last two to three weeks, completely.
“We have met the terms and conditions required by Petroleum Industry Act and also engaged our partners to have a win-win situation where all of us have given up on something.
“However, in the long term, we have gotten an opportunity for us to have investment in this sector”, he said.