The Nigeria National Petroleum Company Limited (NNPCL) has identified currency volatility as a major obstacle to investment in the oil and gas sector, saying that exchange rate fluctuation creates uncertainty over potential returns. The company also cited naira depreciation and contracting processes as challenges.
The Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari, stated this at the 41st Nigerian Association of Petroleum Explorationists (NAPE) Conference in Lagos, yesterday. He was represented by Executive Vice President, Upstream, Oritsemeyiwa Eyesan. He said that addressing sector challenges through collaborative efforts among stakeholders would stimulate investments.
Kyari also said that NNPC is determined to transform its operations, and that it expects a noticeable shift as it attracts increased investment in the oil and gas sector. He said that no investor would invest without assurance of return, and that technology deployment alone is not enough. He said that the company must foster collaboration and hold itself and others accountable for delivering on promises.
He also announced that the $2.8 billion Ajaokuta–Kaduna–Kano (AKK) gas pipeline project, being constructed by Oilserve Limited, would be inaugurated next month. He stressed the need for a refined financial model to address delays, and said that a more stable financial system is crucial for successful delivery.
The NNPCL boss also underscored the company’s commitment to incorporating exploration, advancing renewables, promoting innovation, embracing emerging technologies, and implementing portfolio management as key factors for achieving success in the ever-changing energy environment.