Nigeria's new oil czar wants to open books

Openness will spur investment that has been throttled by uncertainty and opacity, the NNPC’s new chief says.

12 August 2019 | Economics

We are going to do everything possible to make that open … so that people can actually predict what we're going to do next. - Mele Kolo Kyari, MD: NNPC

Libby George - Nigeria's state oil company plans to partner with a private refinery under construction on the shores of Lagos to turn the oil-producing country into a fuel supplier for the region, the new boss said in an interview with Reuters.

The aim to ink a contract with the Dangote refinery, with a capacity of 650 000 barrels per day (bpd), is part of new managing director Mele Kolo Kyari's blueprint for transforming the Nigerian National Petroleum Corporation (NNPC) into a world-class state oil company.

The refinery, being built by billionaire Aliko Dangote, is set to be Africa's largest.

Kyari, who also intends to push for more transparency, said NNPC wants to be a "supplier of first resort" for the Dangote refinery.

"Ultimately, it will be a contract to supply crude," he said.

In his first interview with the international media since taking office last month, Kyari said he would publish the full list of those holding the nation's crude oil contracts and the firms who won deals to swap Nigeria's crude oil for products, along with audited accounts of NNPC's books.

He said the openness, and a plan to improve commercial terms for oil companies, would spur investment that has been throttled by uncertainty and opacity.

The contract lists have not been published for years, and NNPC has been dogged for decades by a reputation for corruption.

Beneficiaries

"We are going to do everything possible to make that open, the businesses open, so that people can actually predict what we're going to do next," Kyari said, adding that this would help to attract investment.

He said the contracts for swapping fuel would be published by the end of this week, though "clarifications" were needed before the crude oil contracts could be published. Industry sources told Reuters that those two-year contracts, awarded earlier this year, included close to 100 names.

NNPC is also pressing ahead with plans to revamp its own ailing refineries despite a nameplate capacity at Dangote refinery that is well above Nigeria's consumption.

"It's worth it," Kyari said of NNPC's refinery overhauls, adding that Nigeria could become a fuel supplier to the entire region. "Africa needs refining capacity," he said.

While he said they are considering both government and private funding, after the revamps, third parties would maintain and operate the state-owned refineries to ensure reliable production.

Italy's Maire Tecnimont is already working on the Port Harcourt plant, and Italian refiner ENI is an adviser. The refineries have processed oil only sporadically for years, leaving the nation to import virtually all its own fuel needs.

Legislation

Kyari said that some ambitious proposals, including selling down government stakes in upstream oil and gas joint-venture agreements and changing the way it pays NNPC's portion of the bills owed under those deals, were on hold for now.

The government still intends to sell its stakes to less than 40%, Kyari said, but he noted that there was currently no framework in place for the sales.

NNPC is in talks with all operating partners to improve commercial terms, but he said the long-delayed legislation to overhaul the oil sector, known as the petroleum industries bill, needed to pass quickly to spur investment.

"There are investment decisions that cannot be made now because the investors are wary of the fiscal environment," he said.

The mammoth bill, covering everything from fiscal terms to Niger Delta community engagement, has been in the works for over a decade. But Kyari said the current government, with the legislature controlled by the party of president Muhammadu Buhari, could pass it.

"This time around, you have the best alignment," he said. "And I'm sure getting it passed will not be difficult." – Nampa/Reuters

Similar News

 

Nam haemorrhaging jobs

20 hours ago | Economics

Jo-Maré Duddy – The impact of Covid-19 and the ongoing recession claimed 5 748 jobs in the three months to the end of June.This is...

Land surveying starts at Okahandja

20 hours ago | Economics

The ministry of urban and rural development has started the land surveying process at Ekunde Extension 5 in Okahandja in efforts to speed up land...

Africa Briefs

20 hours ago | Economics

Egyptians vote for newly created senatePolls opened in Egypt yesterday for a two-day election to choose members of a newly created second chamber of parliament,...

‘Vast global gap' in funds to fight virus

20 hours ago | Economics

Stephanie Nebehay - There is a "vast global gap" between funds needed to fight the coronavirus pandemic and funds committed, World Health Organisation chief Tedros...

17 000 residents targeted for decongestion

1 day - 11 August 2020 | Economics

The Swakopmund municipality is targeting to decongest a total number of 17 000 or more residents from the DRC proper informal settlement by the end...

Safe drinking water crucial

1 day - 11 August 2020 | Economics

Drinking unclean water from the Okavango river or wells will soon be a thing of the past for inhabitants of the Ndonga Linena Constituency in...

Africa Briefs

2 days ago - 10 August 2020 | Economics

Botswana diamond exports fall tumblesBotswana's rough diamond exports plunged 68% percent in the second quarter of the year, data published by the central bank showed...

Bridge repair paralyses Lagos traffic

2 days ago - 10 August 2020 | Economics

Liza Fabbian - Monster traffic jams are nothing new for Lagos, but the partial closure of the city's main bridge for repairs has made getting...

Slumping currency fuels fears in DR Congo

2 days ago - 10 August 2020 | Economics

Marthe Bosuandole - Emilie Kapinga, a 60-year-old fishmonger in a Kinshasa market, now works all day for a pittance.At her wholesaler, "10 kilogrammes of fish...

Agriculture, tourism the future

5 days ago - 07 August 2020 | Economics

whilst the trademark economic sectors of mining and fishing remain the backbone of the region's economy, agriculture and tourism have growth potential, says Aletha Frederick,...

Latest News

Samcee brings ‘Divine Comfort’

9 hours ago | Art and Entertainment

Swakopmund • [email protected] and gospel musician Samson ‘Samcee’ Chivi (21) recently released his third album, Divine Comfort.Born in Kwekwe, Zimbabwe, Samcee came to Namibia with...

Nam haemorrhaging jobs

20 hours ago | Economics

Jo-Maré Duddy – The impact of Covid-19 and the ongoing recession claimed 5 748 jobs in the three months to the end of June.This is...

Man charged with girlfriend's panga...

20 hours ago | Crime

TUYEIMO HAIDULAOSHAKATIA 36-year-old woman died after she was hacked with a panga at her mother's homestead at Ouhwaala village in the Omusati Region on Sunday.Her...

Covid hits Cabinet, Swapo

20 hours ago | Government

OGONE TLHAGEWINDHOEKYesterday's routine cabinet meeting was held virtually after a senior official in that arm of government allegedly tested for Covid-19, while the ruling party...

Fishrot whistleblower rubbishes Samherji's loss-making...

20 hours ago | Crime

OGONE TLHAGEWINDHOEKWhistleblower Johannes Stefansson, who formerly headed Icelandic seafood giant Samherji’s Namibian business interests, has cast doubt on claims by his former employer that its...

Land surveying starts at Okahandja

20 hours ago | Economics

The ministry of urban and rural development has started the land surveying process at Ekunde Extension 5 in Okahandja in efforts to speed up land...

Africa Briefs

20 hours ago | Economics

Egyptians vote for newly created senatePolls opened in Egypt yesterday for a two-day election to choose members of a newly created second chamber of parliament,...

Pads restore dignity at Ncamagoro

20 hours ago | Social Issues

KENYA KAMBOWENCAMAGOROAbout 40 women and girls at Ncamagoro village in Kavango West received free sanitary pads on Monday, donated by anonymous benefactors from the Namibia...

Youth at the periphery of...

20 hours ago | Opinion

With this year's regional and local authority elections a mere two months away, young people are again being elbowed to the edge.In political parties, strategies...

Load More