NNPCL Group Managing Director (GMD), Mr. Mele Kyari
NNPC Limited emphasizes optimization of divested JV assets
Sopuruchi Onwuka
The Nigerian National Petroleum Company Limited (NNPC) has declared that it is emphatic on the optimization of oil and gas producing assets currently being abandoned by the operating partners who are cashing out their onshore and shallow water interests.
The national oil company which has come under intense criticism for its seemingly disruptive interventions in the ongoing divestment transactions between international oil companies and indigenous upstarts stated that it is particular about the quality of its new partners.
The Oracle Today reports that the NNPC Limited is coping with its new indigenous partners over funding, technical and operating capacity; leading to disputes over the allocation of roles in the joint ventures.
The national oil company is also contending the validity of some of the recent farm-in deals into existing joint ventures in which it holds overriding financial interests, citing clauses in which it claims preferential rights to interest acquisition ahead of external parties in the event of farm-out by an existing partner.
However, the national oil company dispelled the impression that it has become a clog in the many stalled divestment deals awaiting government’s approval.
Group Chief Executive Officer, Mallam Mele Kyari, declared at the just concluded Nigerian International Energy Summit (NIES) conference in Abuja that NNPC Limited that its role in the divestment of the International Oil Companies from onshore and shallow water assets in the country is that of a facilitator, and not an obstacle.
Mallam Kyari explained NNPC has the role to ensure optimal and sustainable production from the divested assets to guarantee energy security for the benefit of Nigerians.
He also disclosed the company’s willingness to invest in the proposed African Energy Bank as a way of ensuring sustainable funding for energy projects in Africa to guarantee energy security.
On investment in energy infrastructure to drive energy security, the GCEO further disclosed that the completion of the Obiafu-Obrikom-Oben Pipeline was in sight as the tunnelling across the River Niger was currently ongoing.
He assured stakeholders of the company’s commitment to work with them to close the energy deficit gap and create prosperity for Nigerians, adding that from all indications, all issues of energy scarcity in the country would be over in the next 10 years.
