President Buhari Set to Unveil Commercial National Oil Company

The GMD, Nigerian National Petroleum Corporation (NNPC) Limited, Mele Kyari has said President Muhammadu Buhari will unveil a commercial National Oil Company.

He stated this on the fringes of President Muhammadu Buhari’s state visit to Spain, where he spoke to Nigerian and Spanish business executives about investment potential in the Nigerian oil and gas industry in Madrid, Spain.

According to Kyari, Nigeria has designated the decade of gas from 2021 to 2030, in accordance with global recognition of gas as a transition fuel. Moreso, Nigeria has enacted a law that has created room for a commercial oil company which will be revealed soon.

“In our country today, we have a legislation that has clearly created a commercial National Oil Company which will be unveiled by our President in the coming days.

“Together with the Spanish business community, I am confident we can build this industry,” Kyari said.

Although the NNPC is the oil corporation through which the federal government (FG) of Nigeria regulates and participates in the country’s petroleum industry, with this new development it is sure the FG has made plans to add another oil-producing corporation. Details are however sketchy on what the name is and when it will be announced.

However, about three months ago, Investors King gathered that the president reassured citizens about his administration’s goal to make the renamed NNPC Ltd the continent’s largest and most capitalised oil company.

Speaking at the Nigeria International Energy Summit (NIES), formerly called the Nigeria International Petroleum Summit (NIPS), the president noted that having now become a limited liability company, the National Oil Company (NOC) would soon become a profit-making organization – thus the need for another oil-producing body.

At the event tagged: “Revitalising The Industry: Future Fuels and Energy Transition”, Buhari listed the successful award of 57 marginal fields, passage of the Petroleum Industry Act (PIA) as well as the declaration of the “Decade of Gas” as major milestones of his government.

The GMD further outlined the partnership between Nigeria and Spain as an important one for the NNPC, as Spain receives 26 percent of all Liquefied Natural Gas (LNG) produced in Nigeria.

“This country receives 14 percent of all crude oil produced in Nigeria. Clearly, it is an important market for my company as a whole,” he added.