The Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mele Kyari has disclosed that the corporation’s 20 percent partnership with Dangote refinery will improve energy production and security in the country.
He stated this when he led a delegation to the Kaduna State government to sign a Memorandum of Agreements on gas expansion and utilization.
According to the GMD, the 20 percent being invested constitutes 2.7 billion dollars of the Dangote refinery and petrochemical company, saying, about 130,000 barrel capacity is expected to be produced per day.
Kyari explained that, considering the location of the Dangote refinery at the free trade export zone, all monies invested would be recovered within three to five years.
“When you have shortage in petroleum products, everything becomes complicated, so every country pays attention to energy security by becoming a part owner of such massive investment where you can have a seat on the board and equally make decisions”, he stressed.
The GMD mentioned that NNPC is willing to invest in any other refinery that also has the capacity of producing more than a thousand barrels capacity per day.
“The reason is to broaden investment within the corporation. We do not want to put our eggs in just a basket and this is obtainable in many countries, all this is beneficial to the country”.
Speaking on the Petroleum Industrial Act, PIA, Kyari said, the former bill had archaic laws which have been reviewed especially the fiscal and regulatory framework which will create a favorable business environment and subsequently increase investment and as well, attract foreign investment.
“In the last 5 years, there has been direct investment in sub-Saharan Africa of up to 50 billion dollars in the oil and gas industry and out of which only three billion dollars came into Nigeria even as Nigeria has the highest reserve of oil and gas”.
“Prior to PIA, the challenge was that Nigeria’s fiscal environment was not competitive, there were regulatory issues yet to be addressed and the end result was that companies do not get attracted to investing in the sector”.
The GMD assured that the bill has made the fiscal environment very competitive to world-class standards which will lead to job creation and more investments.
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