The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari has assured that Nigeria’s investment in Dangote Refinery is viable.
Speaking against the backdrop that many developed countries are evolving plans to move away from the purchase and use of crude oil and worries that the investment may not make returns for the country, the NNPC boss observed that there is nothing to worry about in the equity shareholding the country took up with Dangote Refinery.
He assured that the equity share in Dangote’s upcoming refinery will be beneficial to the nation at a time many developed nations are finding alternatives to crude oil.
Kyari gave the assurance on Wednesday when he appeared before the House of Representatives Committee on Finance to provide detailed explanations on some burning Oil Industry issues at an interactive session on the 2022-2024 Medium Term Expenditure and Revenue Framework (MTERF) and Fiscal Strategy Paper (FSP).
On the NNPC equity shareholding interest in Dangote Refinery, Kyari explained to the lawmakers that national interest has been factored in and the refinery when it goes operational must buy a specified amount of crude oil from it which guarantees it as a viable investment.
“We will have right to 20 percent of production from this facility. We structured our equity participation on the basis that the refinery must buy at least 300,000 barrels of crude oil per day of our production. This guarantees our market at a period when every country is struggling to find market for their crude oil’’ he explained.
Meanwhile, the Federal Government of Nigeria has set a timeline to carry out the Petroleum Industry Act (PIA) which was signed into law by President Muhammadu Buhari last week.
In its zeal to implement the act, the President inaugurated a nine-member committee headed by the Minister of State on petroleum, Timipre Sylva.
The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, on Tuesday, while speaking on the signed law noted that the development is a relief for the oil and gas industry in the country and beyond.
Kyari while speaking on NTA, ‘Good Morning Nigeria’ disclosed that NNPC has been stagnated because of a lack of clarity about the physical environment and because the laws guiding the corporation are stale.
Source: Naija News