NNPC outlines plans to attract private investment

June 21st, 2018

The Nigerian National Petroleum Corporation (NNPC) has outlined plans to attract private investments, ensure sustainable development and spur growth in the nation’s Oil and Gas Industry.
The Group Managing Director of the corporation, Dr. Maikanti Baru, disclosed this while speaking on the theme “Investment in the Oil and Gas Industry” at the 7th International Seminar of the Organisation of the Petroleum Exporting Countries (OPEC) in Vienna, Austria on Thursday.
A statement by NNPC in Abuja said Baru observed that investment in the oil industry had become imperative in the wake of recent turbulence experienced in oil price cycle, supply driven glut in the oil market, world economic growth, uncertainties regarding oil’s future, as well as the fiscal imbalance experienced by OPEC member nations.
According to the him, these challenges have also created new wave of opportunities for the corporation because oil is expected to remain the dominant fuel in the energy mix, contributing between 52-53% of the global energy requirement over the next 15 years.
He said NNPC recognized the challenge as well as the opportunity presented by oil demand growth, particularly as an exporter experiencing a surge in local demand.
“The balance of objectives requires that we undertake a paradigm shift in our business model to ensure that we attract capital and sustain flow of investment. It has also placed a burden for change towards broadening the base of investment sources outside traditional government funding,” Baru averred.
He said investors stand to benefit from Nigeria’s oil sector, a development made possible by the current administration of President Muhamadu Buhari which he said had tackled policy instability, environmental problems, that have hitherto discouraged investors from Nigeria.
“We have had about 3.6bn in investment so far. The PIB is undergoing serious legislative process. We segmented it into four and one has been passed. The downstream holds the future. We are looking at revamping our refineries and calling on investors to come and establish refineries. We are also looking at job creation across the entire value-chain,” he told participants at the seminar.
He assured the NNPC was working hard to keep the sanctity of all contracts so that investors are given the right framework to operate.

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