The Nigerian National Petroleum Corporation (NNPC) says its ongoing reform is geared towards transforming the corporation from an oil and gas company into an integrated energy outfit.
The NNPC Group Managing Director, Dr Maikanti Baru, said this on Wednesday in Abuja in a statement signed by Ndu Ughamadu, the corporation’s Group General Manager, Group Public Affairs Division.
According to the statement, Baru said the outfit will have interest in power generation and transmission.
He said NNPC had identified opportunities in the power sector and was ready to take advantage of them to transform from being a gas supplier to the power sector, into a major player, in the sector.
Baru said the Corporation was already working on a project to generate 4, 000 Megawatts of electricity while also exploring the possibility of investing in the transmission segment of the power sector.
Baru explained that the Corporation’s decision to diversify into the power sector was hinged on the need to bridge the huge energy gap in the Nigerian market.
He said contrary to the impression that the poor power situation was caused by inadequate gas supply, the real problem was inadequate transmission capacity.
”There is enough gas to generate 8, 000 megawatts of electricity but the transmission grid could not support such volume of power without complications,” he said.
He also defended the Federal Government’s plan to transform illegal refineries in the Niger Delta into legal entities for proper integration of the youth in the region saying ”getting the youth to form consortia to set up 1000 barrels per day modular refineries would get them off criminality and create jobs”.
In the upstream, he said his goal was to accelerate frontier exploration and grow crude oil reserves to 40 billion barrels from the current 37 billion.
He also challenged geoscientists on the need to deploy more sophisticated technology to drill deeper than the current 13,000 to 15,000 feet in the Niger Delta to produce more oil.
“We have to look deeper with intensive 3D and 4D seismic surveys over the so-called matured Niger Delta. The older, the better, ” Baru said.