The Nigerian National Petroleum Company (NNPC) Limited has attributed the current global gas crisis to shortage of investments in the oil sector as activists, investors, and climate change advocates continue to mount pressure on banks and oil companies to withdraw funding for fossil fuel related projects.
NNPC said there might be no end in sight to the overheating of the oil market, which could even worsen if the required financing of major oil and gas projects continued to lag.
Speaking in Yenagoa during the 10th Practical Nigerian Content (PNC) Conference organised by Nigerian Content Development and Monitoring Board (NCDMB), the Group Executive Director, Upstream, NNPC, Adokiye Tombomieye, urged Nigeria to look inwards for financing of major projects.
The event was attended by several industry and non-sector players, including the governor of Bayelsa State, Douye Diri; Minister of State for Petroleum Resources, Timipre Sylva, who was represented by the Director, Human Resources Management, Dr. Famous Eseduwo; and the NCDMB Executive Secretary, Simbi Wabote.
Others at the event included Country Chair, Shell Nigeria, Osagie Okunbor; Group Managing Director, NNPC, Mele Kyari, who attended virtually; Chief Executive Officer, Nigerian Upstream Regulatory Petroleum Agency (NURPC), Mr Gbenga Komolafe; and several top shots in the oil and gas industry.
Tombomieye, who was represented by the Group General Manager, National Petroleum Investment Management Services (NAPIMS) Bala Wunti, said there had been a downward spiral in investment in the oil and gas industry since 2000. But he stressed that with the Petroleum Industry Act (PIA) things would change from 2022.
Tagged, “Driving Nigerian Content in the New Dawn of the Petroleum Industry Act,” the NNPC top official, who spoke during one of the sessions, maintained that there was an on-going trend of upward movement in the industry.
“The reason is not far-fetched,” Tombomieye stated, adding, “We have seen the consequence of uncertainty in the industry. Investment and uncertainty never mix.”
Tombomieye explained, “Whether we go ahead with the energy transition or not we have already created a monster and that monster is that we now have finance activists, investment activists that have come into the space to create problems for energy investment.
“Energy investment is being attacked and will continue to be attacked in the fossil fuels industry. Investment capital is now very discriminatory against fossil fuels, but not only that, it has become more and more impatient.
“Everybody wants to invest today and recoup the money tomorrow. Nobody wants to invest that money for 10 years, but I need to let you know that the upstream space is not a day’s job. You will invest today and wait for 10 years. These issues have created an impediment to investment.”