NNPCL Targets Investment In $5bn African Energy Bank

The Nigerian National Petroleum Company Limited (NNPCL) has expressed its 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.

The bank is expected to kick off operations before the end of June 2024, with an initial capital base of US$5billion within five years and a gross asset base exceeding US$120 billion by 2028.

The NNPCL, as the largest partner to all the oil producing companies in Nigeria, also assured that its role in the divestment of the International Oil Companies (IOCs) from onshore and shallow water assets in the country is that of a facilitator, and not an obstacle.

Group chief executive officer of NNPCL, Mele Kyari, made the clarification at the opening ceremony of the 7th edition of the Nigerian International Energy Summit 2024 (NIES 2024), at the State House, Abuja, on Tuesday.

In recent times, there had been concerns about the divestments of oil and gas assets by some IOCs.

For instance, in August 2021, Shell launched divestment of its 30 per cent stake in Shell Petroleum Development Company of Nigeria Limited subsidiary.

Also, Seplat Energy Plc announced an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware, for $1.28 billion.

Kyari explained that by virtue of its statutory mandate as the enabler of national energy security, NNPCL’s role is to ensure that there is optimal and sustainable production from the divested assets to guarantee energy security for the benefit of Nigerians.

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 oil 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.

The event saw the participation of key industry and governmental figures, including Haitham al-Ghais, Secretary-General of OPEC; Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers’ Organization; Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil); Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas); Amb. Nicholas Agbo Ella, Permanent Secretary of the Ministry of Petroleum Resources, and the Minister of Information and National Orientation, Mohammed Idris Malagi, who represented the Nigerian President, Bola Ahmed Tinubu.