Energy transition: Oil industry going through critical phase, says Mele Kyari

Mele Kyari, group managing director (GMD) of the Nigerian National Petroleum Corporation (NNPC), says the oil industry is at a “critical phase” with the ongoing reforms and global energy transition drive.

Kyari said this when the delegation of the Independent Petroleum Producers Group (IPPG) paid him a courtesy visit recently in Abuja.

According to the NNPC GMD, the NNPC and IPPG must collaborate and ensure that the industry is well-positioned to maximise investment opportunities.

While commending the IPPG and noting the role they have to play in the growth and development of the industry, Kyari said that with the enactment of the Petroleum Industry Act (PIA), issues around uncertainties had been addressed.

“The industry now has a robust fiscal and regulatory framework to anchor its growth and development,” Kyari said.

The IPPG delegation led by Abdulrazaq Isa, the chairman, called on the government to adopt natural gas as the transition fuel for the country.

Isa noted that the evolving industry landscape with the ongoing industry reforms and international oil companies’ (IOC) divestment places a burden on the indigenous exploration and production companies to rise to the challenge of guaranteeing the nation’s energy security in the new era.

“Gas should be considered as a transition fuel with deliberate policies formulated to attract investment into the sector,” Isa said.

He added that Nigeria cannot afford to be left behind because of the global energy transition agenda.

The IPPG chairman also identified insecurity, funding, high operating costs, lengthy contract cycle, amongst others, as key challenges facing the industry.

“We look forward to collaborating with the NNPC in finding long-lasting and sustainable solutions to these challenges,” Isa said.

Isa commended the NNPC for the role it played in the signing into law of the PIA, expressed hope that the uncertainties and under-investments in the industry over the last few years would come to an end.

He also congratulated Kyari on his appointment as the chief executive officer of NNPC Limited by President Muhammadu Buhari.