Mele Kyari, Group Chief Executive Officer (GCEO) of NNPC Ltd, stated on Tuesday at the 22nd edition of the 2023 Nigeria Oil and Gas (NOG) Energy conference and exhibition in Abuja that the Nigerian National Petroleum Company Limited (NNPC Ltd.) reiterated its intention to issue an Initial Public Offering (IPO) to investors as soon as possible.
The theme of the conference is, “Powering Nigeria’s Sustainable Energy Future.”
Kyari stated that the decision was based on the law while speaking on “Redefining Nigeria’s Energy Landscape for a Sustainable Energy Future.”
“As a company governed by the Companies and Allied Matters Act, the NNPC Ltd. will declare its shares available for purchase to the public very soon.”
“We will pay taxes; we will pay royalties like anyone; we will also pay dividends to our shareholders, which many of you are.
”We are in business, and business means competition. We are a private sector, forget about the fact that we are owned 100 percent by the government.
“You are also aware, we are going to make a public offering very soon, and we will sell a part of our equity.
”It is in the law, and once that happens, we will not be any different for any of you, and it will be a very different business environment, he said.
Regarding the removal of subsidies, Kyari stated that it had ensured positive change in the sector by freeing up capital for powering the sustainable supply of energy.
“Are we positioned to facilitate business? Yes, but our partnership produced over 80 percent of the oil and gas in the country, either directly, through our off-stream company, or through our partnership.
“I am in a position to facilitate business. On the PSC today, we are just agents of the state, trying to make sure we deliver value to them, and then they will pay.
“I am sure you appreciate this new relationship. The PSCs are not on the balance sheet of the NNPCL.
”We make sure you do your work because when you do, we are compensated 40 percent of your profit, so it is important for us as well as business for us, he said.
Concerning energy poverty, the NNPCL CEO stated that the priority was now to ensure that more people had access to energy.
Kyari said, “Over 30 percent do not have access to electricity. So, is energy available, or is it a problem of affordability?
Or is it that we have an unsustainable situation, or is it a combination of all of them? I think we are dealing with the combination of all.”
According to him, energy is scarce and unaffordable in a concrete sense.
He explained that this was due to a variety of structures and issues that made affordability a concern for everyone.
“We supply gas, but we do not get payment for it; We supply power, and we do not get payment for it.
”So, you cannot run any business this way. You cannot be sustainable. You cannot create affordable energy, and it will not be available.”
According to him, the drivers of Nigeria’s energy future are affordability, accessibility, and sustainability.
He stated that key initiatives on the horizon for NNPCL include expanding gas infrastructure to deliver gas across West Africa and potentially Europe.
He also stated that expanding NLNG liquefaction capacity and enabling the availability of LPG as a cooking fuel and CNG as an alternative fuel for automobiles were critical.
Kyari then emphasised the importance of closing the skilled labour gap, ensuring asset security, and investing in infrastructure to turn challenges into opportunities.
Reports show that the NOG Energy Week is Nigeria’s foremost international energy conference aimed at discussing policy implementation, the vital energy agenda, and investments, among others.
Policymakers, regulators, leaders, stakeholders, and industry partners all attended the ongoing event.
