Investors Divesting From Nigeria’s Oil Sector, NNPC Boss Says
The Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Mele Kyari, said international investors are divesting from the nation’s oil and gas industry owing to loss of confidence occasioned by the absence of a stable fiscal environment.
The nation’s oil and gas sector has been without an enabling act and that has not given investors the comfort to commit their money into the industry.
The Petroleum Industry Bill (PIB) that would have been expected to provide the succor and encourage the investors to think positively about investing in the country has been long in coming, gathering dust at the National Assembly
Kyari, who did not give the quantum of the investment flight however tasked the lawmakers to act fast and arrest the situation.during a meeting with the members of the House of Representatives Committee on Petroleum Resources (Upstream) who were on an oversight visit to the Corporation.
The growth of the Nigerian petroleum industry, especially the upstream sector has stagnated, Kyari lamented.
“We need to act quickly to move from this unstable situation to a very stable one and the only way is for us to get the Petroleum Industry Bill (PIB) to work so that countries and investors can work with us,” noted the GMD who stated that foreign capital was needed in the upstream sector and that the only way to attract it was to have stable laws that could guarantee cost recovery and a decent return on investments
He disclosed that the uncertainty in the sector created by the long delay in the passage of the PIB has led to a number of divestments from the country in the recent past.
On the upside, the GMD stated that lenders are now willing to grant credit to the corporation due to NNPC’s culture of transparency which has also improved its fortunes and creditworthiness
In his remarks, the Chairman of the Committee, Hon. Musa Sarki Adar, expressed the readiness of his committee to provide the necessary support for the Corporation to discharge its duties without hindrance.
He acknowledged the Corporation’s efforts at deepening transparency and accountability, stressing that the Committee was impressed with the level of professionalism exhibited by the NNPC Management and the leadership role played by the GMD in rallying the oil and gas industry to provide support for the Federal Government’s fight against the COVID-19 pandemic.
In a presentation, the Managing Director of the Nigerian Petroleum Development Company (NPDC), Engr. Mansur Sambo, said the company has increased its gas production to 860mmscf/d and is now the largest supplier of gas to the domestic market.
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