Group Managing Director of the corporation, Mallam Mele Kyari , has said that some ambitious proposals, including selling down government stakes in joint-venture agreements changing the way it pays NNPC’s portion of the bills owed under those deals, were on hold for now.
According to him the government still intends to sell its stakes to less than 40%, but noted that there was currently no framework in place for the sales.
NNPC is in talks with all operating partners to improve commercial terms, but he said the long-delayed legislation to overhaul the oil sector, known as the petroleum industries bill, needed to pass quickly to spur investment.
“There are investment decisions that cannot be made now because the investors are wary of the fiscal environment,” he said.
The mammoth bill, covering everything from fiscal terms to Niger Delta community engagement, has been in the works for over a decade.
But Kyari said the current government, with the legislature controlled by the party of President Muhammadu Buhari, could pass it. “This time around, you have the best alignment,” he said. “And I’m sure getting it passed will not be difficult.”
In another development NNPC said that it was working with its partners to grow the national reserve to 40 billion barrels by 2025 and improve crude oil production to three million barrels per day.
The corporation also disclosed plans to attract capital through massive investment across its value chain to drive the ambition.
NNPC Group Managing Director, Mele Kyari, made this known in his remarks at the sideline of the just conluded 2019 Nigeria Annual International Conference and Exhibition, NAICE, in Lagos.
He said: “NNPC, with our partners, are driving the national aspiration to grow the national reserve to 40 billion barrels by 2025 and improve crude oil production to three million barrels per day.
“To achieve this ambition, huge investment is required across the value chain. We have to attract investments to deploy improved technology in the exploration and production of hydrocarbons from inland as well as the ultra-deep offshore basins.
“We have to open up the midstream, complete all critical gas development projects targeted to deliver about three billion scfd to gas market, ensure the close-out of investment decision on NLNG Train 7 and improve domestic utilisation to improve power generation and industrial growth.
He noted that the industry had been significantly challenged by several factors, ranging from lack of adequate fiscal policy, regional security, market volatility, sabotage, to theft, among others.
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