Why International Oil Companies are Leaving Nigeria, NNPC Boss Reveals

Why International Oil Companies are Leaving Nigeria, NNPC Boss Reveals

  • Mele Kyari, group managing director of the NNPC, says international oil companies are not withdrawing investments from Nigeria’s oil industry
  • Kyari who made the remark in reaction to reports that oil majors are leaving Nigeria, said they are divesting to meet net-zero commitment
  • The NNPC boss made the clarification on Monday, February 28, while delivering his welcome speech at an event in Abuja

Abuja - Mele Kyari, the group managing director, Nigerian National Petroleum Company (NNPC) Limited, has opened up on why international oil companies are leaving Nigeria.

Kyari explained that companies are shifting their portfolios to where they can add value to the journey towards carbon net-zero commitment.

Mele Kyari
Mele Kyari, group managing director NNPC says international oil companies are divesting to meet net-zero commitment. Photo credit: @NNPCgroup
Source: Twitter

Premium reports that the NNPC boss made the disclosure in his speech at the 2022 Nigerian International Energy Summit (NIES2022) in Abuja on Monday, February 28.

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He said:

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“Companies are divesting. They are leaving our country. That is the best way to put it. They are not leaving because opportunities are not here but because companies are shifting their portfolios where they can add value and not just that, but where they can also add to the journey towards carbon net-zero commitment.”

According to him, they are divesting to meet shifts in their investment portfolios, The Cable added.

Kyari went on to note that the transition must have sanity, and there must be justice in the energy transition.

He added that despite issues in the oil sector, divestment must come with a smooth decommissioning process.

Oil price nears $100 per barrel as Russia-Ukraine crisis thickens

Legit.ng previously reported that as Russia and Ukraine crisis continues, the global oil price has risen towards $100 per barrel on supply.

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This is as worries over the tension growing between the two countries continue to escalate after Moscow ordered troops into two breakaway regions in eastern Ukraine.

It was reported that efforts by various governments to push for an economic rebound are however adding constraints to tight oil supplies across countries.

Nigeria has only $60 million left in its excess crude account

Meanwhile, it is almost game over for Nigeria and one big withdrawal from the excess crude account could see it drop to an unredeemable state.

According to reports, Nigeria's excess crude account has dropped significantly to just over $72 million.

Even with oil trading above the expected price, Nigeria cannot save its oil revenue for which the ECA is created.

Source: Legit.ng

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