Driving local content, strengthening the domestic market and ensuring Nigerian citizens benefit from the country’s oil and gas resources, the NOC serves as an example for other NOCs in Africa
“Having the NNPC as a diamond sponsor of AEW 2022 is huge. The sponsorship not only positions the newly privatized company at the forefront of dialogue but further consolidates AEW 2022’s role as the continent’s premier energy event. Centered around oil, gas and making energy poverty history, AEW 2022 is committed to strengthening investment and development across the entire energy value chain. What once was one of Africa’s biggest NOCs, the NNPC now represents one of the continent’s leading independents, driving exploration and production and emphasizing the role African companies will play in expanding the energy sector. We are proud to host the NNPC as a diamond sponsor and we look forward to discussions, deals and engagement led by the organization,” states NJ Ayuk, Executive Chairman of the AEC.
And representing the biggest energy event taking place in Africa in 2022, African Energy Week (AEW) 2022 this week said it was proud to be joined by the Nigerian National Oil Company (NNPC), which h is one of the continent’s biggest national oil companies (NOC), as a diamond sponsor.
With the sponsorship, notes AEW, the NNPC will make a strong case for investment in 2022 and beyond, while leading critical discussions around the need to increase exploration and production, opportunities created through progressive legislation and positioning NOCs as the energy companies of the future in Africa.
According to reports for years’, the NNPC served as an ideal partner for international oil companies (IOC) in Nigeria, representing the Nigerian government in all oil and gas-related matters.
Driving local content, strengthening the domestic market and ensuring Nigerian citizens benefit from the country’s oil and gas resources, the NOC served as an example for other NOCs in Africa.
Organisers have also revealed that as diamond sponsor with an NNPC delegation coming to AEW 2022 in Cape Town, the organization will participate in and lead discussions around the role of NOCs in Africa’s energy future, with dedicated NOC forums serving to broaden dialogue and redefine current narratives.
Accordingly, following years’ of being an NOC, on July 19 this year, the NNPC transformed into NNPC Limited – a fully commercial venture without government funding or control.
The decision to transform the company from an NOC into a private enterprise follows the implementation of the Petroleum Industry Act, signed into law in 2021, and centered around improving transparency and productivity across the energy sector, it has been reported. And regulated by the Companies and Allied Matters Act 2020, NNPC Limited will focus predominantly on its role as an operator, prioritizing exploration and production and working closely with IOCs.
Furthermore, with the transformation, the Nigerian energy sector has entered into a new era of transparency and regulatory certainty, with NNPC Limited expected to grow exponentially as 20% of the organization’s profits are reinjected to grow the business.
Moreover, according to experts, the transformation comes at a time when Nigeria’s production has been on the decline, owing largely to reduced investment in exploration, declines in legacy fields and post-COVID-19 impacts. Now, focused on expanding exploration and production, NNPC Limited is set to make a strong case for investment and IOC participation in the sector, while setting the tone for other NOCs across the continent.
In this regard, during AEW 2022, NNPC Limited will drive discussions on the impact an enabling environment and the implementation of progressive legislature has on Africa’s energy sector.
In addition, with the PIA and subsequent NNPC transformation, Nigeria has managed to establish a competitive and highly attractive market for regional and international players, while at the same time demonstrating the effectiveness of African-independent led developments.
As diamond sponsor, the NNPC will provide insight into the newly formed organization’s plans for 2022 and beyond, while emphasizing the role NOCs and private oil companies will play in Africa, the group adds.