NNPC adopts third party oil & gas projects financing to boost exploration, revenue

The Nigerian National Petroleum Corporation (NNPC) has assured on the adoption of third party financing of oil and gas development projects to heighten and expand exploration activities and improve revenue generation.

The corporation disclosed this plan just as it received commendation for its transparency and accountability from the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

RMAFC lauded the management of the corporation led by Mallam Mele Kyari, for its openness and sustained progress towards accountability and meeting its obligations to the Federation in spite of the challenges posed by the COVID-19 pandemic.

The chairman of the RMAFC, Engr Elias Mbam, gave the commendation during a recent visit by the group managing director of NNPC, Mallam Mele Kyari, to the RMAFC in Abuja.

Mbam said the reason for the meeting was for both organisations to share information, look at challenges and provide solutions that would enable the oil and gas sector to yield more revenue to the federation account.

Responding, the NNPC boss, Kyari, harped on need for NNPC and the RMAFC, and other relevant government institutions, to collaborate in tackling challenges facing the nation’s oil and gas industry with a view to boosting revenues from the sector.

Kyari revealed that the unprecedented successes recorded by NNPC were as a result of the trust and confidence reposed on the current management of the Corporation by the federal government, adding that NNPC hit 2.49 million barrels per day production level in April this year, a feat which has not been achieved in the last 10 years.

The NNPC boss explained that the current global reality of energy transition has proved gas resources to be more viable as a revenue earner for the nation and that NNPC was beginning to focus more on gas development to boost the nation’s economy and offer maximum value to Nigerians.

“As we intensify efforts towards exploitation of oil, gas has become very prominent in transactions. Throughout the COVID-19 situation, the only stream of revenue that was not impacted negatively was the gas stream and that is why we have shifted our focus to gas both in the domestic market and for export,” Kyari added.