NNPC Ltd. and OPEC Forge Alliance to Bolster Investment and Production in Nigeria

Abuja, Nigeria – In a move aimed at bolstering Nigeria’s oil and gas sector, the Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Organization of the Petroleum Exporting Countries (OPEC) have pledged to collaborate on attracting investments and increasing the nation’s oil production.

This strategic partnership was solidified during a courtesy visit by OPEC Secretary-General Haitham al-Ghais to NNPC Ltd. Group Chief Executive Officer Mele Kyari on Wednesday, February 28th, 2024, at the NNPC Towers. The meeting underscored a shared commitment to navigating the complexities of the global energy landscape and ensuring Nigeria remains a key player in the oil and gas industry.

Mutual Vision and Market Stability:

Highlighting the importance of a unified approach, Secretary-General al-Ghais expressed OPEC’s alignment with NNPC Ltd.’s vision, encapsulated in its slogan: “Energy for Today, Energy for Tomorrow.” He emphasized the need for an inclusive energy perspective, countering the narrative that certain energy sources are inherently negative.

Al-Ghais acknowledged the current challenges facing the oil and gas industry, including the pushback from some quarters. However, he stressed the crucial role oil and gas will continue to play in the global energy mix. He revealed that an estimated $14 trillion in investments are required globally between now and 2035 to meet anticipated demand. This presents a significant opportunity for Nigeria, and al-Ghais encouraged NNPC Ltd. to leverage this by increasing production and solidifying its position as a reliable energy supplier.

He further emphasized OPEC’s unwavering commitment to ensuring market stability, a critical factor in attracting investments to Nigeria. “The global market needs stability for Nigeria to attract investors,” he stated. “Volatility creates havoc for everyone, producers and consumers alike. OPEC will continue to work towards stability, and we count on Nigeria’s support.”

NNPC Ltd.’s Commitment: Recovery and Investment Attractiveness:

In his response, Mr. Kyari outlined NNPC Ltd.’s ongoing efforts to address current challenges and foster a thriving oil and gas sector in Nigeria. He highlighted their commitment to:

• Production Recovery: NNPC Ltd. is actively working to recover lost oil production, aiming to regain momentum and leverage the global investment opportunity.
• Fiscal Environment: Establishing a favorable fiscal environment is critical to attracting investments. NNPC Ltd. is actively involved in shaping appropriate policies that incentivize investors while ensuring long-term sustainability and growth for the Nigerian economy.

Mr. Kyari expressed his appreciation for OPEC’s continued support for Nigeria and reaffirmed NNPC Ltd.’s commitment to reciprocate that support. He pledged NNPC Ltd.’s assistance to OPEC in achieving its goals as the organization works to navigate a dynamic and evolving global energy landscape.

Looking Forward – A Collaborative Future:

The collaboration between NNPC Ltd. and OPEC holds significant promise for the future of Nigeria’s oil and gas sector. By working together to attract investments, ensure market stability, and implement effective recovery strategies, both entities aim to:

• Increase Nigeria’s oil production: This will contribute to meeting global energy demand, strengthening Nigeria’s position as a reliable supplier, and generating additional revenue for the nation.
• Stimulate economic growth: Attracting investments will provide a significant boost to the Nigerian economy, creating jobs, fostering development, and generating additional government revenue.
• Promote regional and global energy security: A stable and prosperous Nigerian oil and gas sector contributes to regional and global energy security by providing reliable energy supplies.

The success of this collaboration will depend on several factors, including:

• Effective implementation of strategies: Both NNPC Ltd. and OPEC need to translate their commitments into concrete actions and policies that deliver tangible results.
• Market dynamics: The global oil and gas market remains volatile, and both entities need to adapt their strategies to respond to evolving market conditions.
• Political stability: A stable political environment in Nigeria is crucial for attracting investments and ensuring the successful implementation of planned initiatives.

While challenges remain, the renewed collaboration between NNPC Ltd. and OPEC represents a significant step towards solidifying Nigeria’s position in the global oil and gas market. By working together, they aim to attract investments, increase production, and ensure a more prosperous future for the Nigerian energy sector.