HOUSTON: The Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mele Kyari said Nigeria is fighting the menace of crude oil theft frontally, and through the joint efforts of the government and private security agencies, there have been some reasonable improvements in the restoration of the nation’s crude oil production.
He said this during a Leadership Dialogue Session at the ongoing CERAWeek Conference in Houston, United States, on Tuesday.
CERAWeek is one of the largest energy conferences in the world, drawing thousands of foremost global energy industry experts and a host of other corporate and government leaders from around the world annually to Houston, United States, for a week-long conversation on the future of energy.
The NNPCL Boss told participants at the event that an example of the improved security situation was when, in 2022, Nigeria’s production fell below 1 million barrels per day, which was restored to 1.7 million barrels per day.
He said, “It is an abnormal situation, but it is well within control. We were able to recover some of our production and build back confidence so that investors could bring in their money. We are also doing global advocacy for governments and institutions because stolen oil has to be taken to the market.”
Kyari also advocated for a differentiated approach to attaining energy transition for the African continent.
According to the GCEO, energy transition is a very difficult subject for countries, especially in sub-Saharan Africa because geographically, the situations are different as a number of the countries are dealing with energy availability, not transition, and energy availability is closely linked to energy security.
He said, “The world has seen all the challenges thrown up recently by geopolitical events. It is clear that before the energy transition, countries must first attain security of energy supply in their countries. You cannot talk about energy security when it is not even available. In most of sub-Saharan Africa, 70% of the population doesn’t have access to clean cooking fuels. Therefore, you must fill the supply gap first.
He said that although people talk about using the renewables to close the energy transition gap, the money for the renewables too must be found.
“If you insist on completing substitution today, then you have to deal with the problem of supply. For us today, the transition must be differentiated. Even if Africa decides to switch off its fossil fuels, it only accounts for just about 3% of the entire global emissions,” the GCEO added.
He stated that, as the largest oil and gas company and corporate entity in Africa, NNPC Ltd. is critical to Nigeria’s resource management and economic development.
He observed that the Petroleum Industry Act (PIA) 2021 has reformed Nigeria’s oil and gas industry, by ensuring that NNPC Ltd. emerged as a fully commercial entity that is not only accountable and responsible to its shareholders but also one that is on the pathway to getting quoted on the stock exchange.
Organised by S&P Global, the conference has grown in recent years to accommodate new energy technologies and climate issues. The 2024 conference is expected to have participants from over 90 countries and will feature 1,400 speakers.
Under the theme “Multidimensional Energy Transition: Markets, Climate, Technology and Geopolitics,” the CERAWeek 2024 will explore “strategies for a multidimensional, multispeed and multifuel energy transition,” as the global energy industry tries to respond to, and offer insight into the roadmap towards, growing demand for emissions reductions and moving towards cleaner forms of energy.