NNPC Ltd Will Be Ready For Capital Market Listing In June Next Year, Kyari Assures

Africa’s biggest energy company, the Nigerian National Petroleum Company Limited has said it will be ready to issue its first Initial Public Offer to the public by June 2023.

The newly launched oil giant by implication would be ready for listing on the Nigerian Exchange Limited.

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Mele Kyari, the Group Chief Executive Officer of the national oil company disclosed this on Tuesday at the State House briefing, Abuja.

The NNPC boss provided key updates on the vision of the newly unveiled energy company and the recent interventions being put in place to handle the challenges of crude oil theft in Nigeria.

Nigerian President, Muhammadu Buhari unveiled the NNPC Ltd on July 20, 2022 which was enabled by the newly signed Petroleum Industry Act, a legislation that overhauls the oil sector.

Africa’s biggest oil exporter is refashioning the oil sector to meet global energy demands and improve the country’s foreign exchange earning to boost reserves.

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Kyari said, “It (NNPC Ltd) is a much more compressed company today, a slimer company that it will be and also because your financing partners always look out for your ability to have a system, a business model, a governance structure, that means that it will enable us have access to financing.

“You are aware that the law clearly stipulates that this company’s interest can be diluted subsequently. The federation, the shareholders- you and me under the guidance of the National Economic Council, that we can dilute our interest instead of having a bulk interest held on behalf of all of us.

“There can be private interest that can be held by individuals or companies in this company (NNPC Ltd). And this is very different. It will happen, because it is the requirement of Section 54 of the PIA which clearly stipulated that we can dilute the interest of this company.

“And for you to do this, you must be IPO ready. IPO ready means that you must have system, processes, organisation, transparency and also assets to back this up and also a business practice, a business model that supports this.

“And I believe very strongly with what has happened now, with the things that have been done so far, we believe that by the mid of next year, this company will be IPO ready and we can dilute the interest of this company.

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“Of course, you can’t do this except you have clear vison and mission as a core value because our ambition is to be the dynamic global company of choice. Today companies and individual have choices. People decide where to acquire energy from.”

The company has 20 per cent stake in the $25bn Dangote Refinery and controls joint ventures with oil majors like Shell Production & Development Company (NNPC 55% / SHELL 30% / ELF 10% / AGIP 5%); Mobil Producing Nigeria Unlimited (NNPC 60% / MPN 40%); Pan Ocean Oil Corporation Nigeria (NNPC 60% / POOCN 40%); Chevron Nigeria Ltd (NNPC 60% / CNL 40%) and over eleven other JVs.

NNPC Ltd’s estimated worth is $90bn or N38.14trn, making it bigger than every other listed company on the NGX.

When NNPC transitioned into a commercial entity regulated in line with the provisions of the Companies and Allied Matters Act (CAMA) Kyari said the company’s “transferred assets currently worth $59.8 billion” he had said on Arise Tv.

“We think that when the evaluation is completed, we will probably have access to another $80bn to $90bn worth of upstream assets.”

The two biggest entities on NGX by market capitalisation are Dangote Cement with N4.17trn market capitalisation and MTN with N4.07trn.

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Kyari, during the briefing explained that the company is now positioned to forge its path towards becoming a giant in the global energy space.

He revealed that the transparency level of the new NNPC Ltd has hit new heights, a quality he believes would make the entity attractive.

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