Oil Market Outlook and Growth Opportunities
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Questions and Answers

What are NOCs primarily focused on according to the peer landscape?

  • Expanding refinery capacities globally
  • Maximising value from hydrocarbon assets within a limited window of opportunity (correct)
  • Investing in gas and alternative energy sources
  • Reducing costs in downstream operations

What is a key competitive advantage in the current market dynamics?

  • Focusing on gas and alternative energy sources
  • Investing in petrochemicals
  • Cost efficiency (correct)
  • Increasing refinery capacities

What is a common strategy among global O&G companies?

  • Reducing investments in oil and gas production
  • Investing in gas and alternative energy sources (correct)
  • Investing in new refinery capacities
  • Focusing on oil production in the short-term

What is a key implication for NNPC Ltd in the upstream sector?

<p>Maximising oil and gas production to monetize demand in the short-term (C)</p> Signup and view all the answers

What is a common trend among global peers in the refineries sector?

<p>Reducing focus and investments in refinery capacities (A)</p> Signup and view all the answers

What is a key strategy for global peers in the downstream sector?

<p>Focusing on cost optimization practices (A)</p> Signup and view all the answers

When is global oil demand expected to peak?

<p>In the mid-2020s (A)</p> Signup and view all the answers

What percentage of new production is at risk due to high production costs and OPEC production quotas?

<p>50% (D)</p> Signup and view all the answers

What is the expected growth rate of natural gas demand in Africa from 2020 to 2040?

<p>21% (B)</p> Signup and view all the answers

Which countries are expected to make up ~80% of natural gas demand in Africa?

<p>Egypt, Nigeria, and Algeria (D)</p> Signup and view all the answers

What percentage of oil products demand in Africa will be fulfilled by imports until 2040?

<p>50% (B)</p> Signup and view all the answers

What is the primary driver of natural gas demand in Africa?

<p>Power sector (B)</p> Signup and view all the answers

What is the main goal of future-proofing a business?

<p>To maximize shareholder value (C)</p> Signup and view all the answers

What strategic inputs were considered in arriving at the corporate strategic ambition?

<p>PIA, Market outlook, Peer landscape and NNPC performance (B)</p> Signup and view all the answers

What is focused on in the 'Grow' strategic option for Upstream?

<p>Monetizing peak demand in the next 10 years (A)</p> Signup and view all the answers

What is the goal of the 'Optimize' strategic option for Refineries?

<p>Optimizing existing refineries by focusing on completing rehabilitation (C)</p> Signup and view all the answers

What is the focus of the 'Rationalize' strategic option for Downstream?

<p>Reducing current retail portfolio footprint (A)</p> Signup and view all the answers

What is the goal of the corporate strategic ambition approved by the NNPC Limited Board?

<p>To grow-focused strategic ambition for all core business segments (D)</p> Signup and view all the answers

What is the focus of the 'Grow' strategic option for Gas, Power & New Energy?

<p>Upscaling and expanding gas processing and transportation services (D)</p> Signup and view all the answers

What is the goal of the 'Optimize' strategic option for Refineries?

<p>Optimizing existing refineries by focusing on completing rehabilitation (D)</p> Signup and view all the answers

What is the focus of the 'Rationalize' strategic option for Non-core Business?

<p>Rationalizing existing unprofitable ventures (B)</p> Signup and view all the answers

What is the goal of the strategic options for NNPC Ltd?

<p>To maximize shareholder value (A)</p> Signup and view all the answers

What is the primary focus of NNPC Ltd's 10-year journey?

<p>To be a dynamic energy company of choice (A)</p> Signup and view all the answers

What is the primary focus of the task numbered 9 in the short-term plan?

<p>Defining funding strategies of verticals and conducting negotiations with potential investors (B)</p> Signup and view all the answers

What is the primary objective of the Immediate stage (Jan. 2022 – Jun. 2023) of NNPC Ltd's transition?

<p>To transition to NNPC Ltd (Rebirth and survival) (B)</p> Signup and view all the answers

What is the purpose of developing critical skills and capability and talent management in the Consolidation stage of NNPC Ltd's transition?

<p>To ensure sustainability across the businesses (A)</p> Signup and view all the answers

What is the goal of the task numbered 11 in the short-term plan?

<p>To develop a Tax optimization strategy (C)</p> Signup and view all the answers

What is the primary focus of the medium-term plan?

<p>Growth and Expansion through Leverage portfolio and alliances (B)</p> Signup and view all the answers

What is the primary goal of debottlenecking operations in the Consolidation stage of NNPC Ltd's transition?

<p>To reap short-term production gains and minimize operational and logistics cost (A)</p> Signup and view all the answers

What is the goal of the task numbered 1 in the long-term plan?

<p>To grow presence in international markets (D)</p> Signup and view all the answers

What is the purpose of conducting a GHG inventory and establishing baseline emissions for NNPC Ltd in the Consolidation stage?

<p>To track progress towards decarbonization targets (C)</p> Signup and view all the answers

What is the primary focus of the decarbonization targets in NNPC Ltd's strategic pathways?

<p>To balance profitability requirements with energy security (D)</p> Signup and view all the answers

What is a key component of the short-term plan?

<p>Entrench accountability and performance management (D)</p> Signup and view all the answers

What is the goal of the task numbered 5 in the long-term plan?

<p>To establish new lines of distribution networks (C)</p> Signup and view all the answers

The corporate strategy of NNPC Ltd includes business and operating models for subsidiaries.

<p>True (A)</p> Signup and view all the answers

The funding strategy for NNPC Ltd involves identifying only one potential investor archetype.

<p>False (B)</p> Signup and view all the answers

The change management strategy of NNPC Ltd includes maintaining maximum transparency and high morale within the organization.

<p>True (A)</p> Signup and view all the answers

The energy transition strategy of NNPC Ltd involves setting a clear path to unlock funding only in the short-term.

<p>False (B)</p> Signup and view all the answers

The security of supply strategy of NNPC Ltd involves developing supply chain capability and resilience to ensure security projects.

<p>True (A)</p> Signup and view all the answers

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