*The Federal legislators commend to Malam Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation on giving detailed explanations on industry issues, saying: 鈥楪MD, you have made our day鈥�

Isola Moses | 绿帽献妻

For providing an in-depth explanation and insider perspective on certain issues surrounding the operations of Corporation and the entire oil industry in the country, Malam Mele Kyari, Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), has received accolades from the House of Representatives Committee on Finance, in the National Assembly (NASS), in Abuja, FCT.

The state oil firm stated that the Federal lawmakers Wednesday, August 25, 2021, commended Malam Kyari for offering 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).

Members of the Nigerian House of Representatives in session

Mr. Garba Deen Muhammad, Group General Manager, Group Public Affairs Division of NNPC, in a statement issued Wednesday, in Abuja, said Hon. Abiodun James Faleke, Chairman of House Committee on Finance, while applauding the NNPC GMD for providing an in-depth explanation and insider perspective on some issues said, 鈥測ou have made our day.

鈥淭he committee is better informed, based on explanations provided by the GMD.鈥�

The statement noted Malam Kyari, in his presentation, provided a base oil price scenario in the medium term as follows: $57 per barrel for 2022, $61 per barrel for 2023 and $62 per barrel for 2024 respectively.

He explained that the assumptions were arrived at after a careful appraisal of the three-year historical dated Brent Oil Price average of $59.07 per barrel premised on Platts Spot Prices.

Kyari stated: 鈥淧rice growth is to be moderated by the lingering concerns over COVID-19, increased energy efficiency, switching due to increased utilisation of gas and alternatives for electricity generation.

鈥淭hese are reflected in the Medium Term Revenue Framework.鈥�

Regarding the perennial issue of smuggling of petroleum products, the NNPC GMD implored the National Assembly to come to the aid of the Corporation in battling the menace.

He said that the Corporation, based on the directive of Mr. President, had mobilised some Federal Agencies such as Customs, Economic and Financial Crimes Commission (EFCC), Nigeria Police, Nigerian Security and Civil Defence Corps (NSCDC), and others to find workable solutions to the menace.

On the propriety of establishing NNPC Retail stations in neigbouring countries to curb the challenge of illegal haulage of petroleum products across the border, Kyari said though the NNPC once considered the option, it had to jettison the idea when it became imperative that the measure would be counterproductive.

He further explained that people who are smuggling are not looking for officially priced petroleum products.

Going ahead to establish NNPC Retail stations would not yield the desired result since the people who take products across the border are not interested in selling at the official prevailing prices at approved stations but are interested in under the counter deals, stated Kyari.

The NNPC GMD also provided a detailed explanation on the Corporation鈥檚 equity shareholding interest in Dangote Refinery.

He disclosed that the investment package, which was at the instance of NNPC, is designed to guarantee national energy security.

The equity interest, he disclosed, was secured after due consideration of the national interest and best possible options.

He added: 鈥淲e 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.

鈥淭his guarantees our market at a period when every country is struggling to find market for their crude oil.鈥欌��