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FG to Cede Expired Oil Fields to NNPC

by on July 25, 2019
 

The group managing director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has hinted of the federal government’s move to cede some expired oil fields to its subsidiary, the Nigerian Petroleum Development Company (NPDC).

Kyari also disclosed that the corporation would leverage on the existing Direct-Sales-Direct-Purchase product supply arrangement to guarantee energy security for the country.

While receiving, yesterday, in Abuja a delegation from ENI/Agip led by the executive vice chairman, sub-Saharan African Region and chairman ENI Exploration and Production in Nigeria, Mr. Brusco Guido, Kyari said that “on the issue of some of the expired assets, the there is no immediate plan to renew the licenses as the federal government is interested in having the exploration and production arm of the NNPC, the Nigerian Petroleum Development Company (NPDC) to operate them.”

He promised to work closely with ENI/Agip to speedily resolve all pending issues that led to the suspension of cash-call repayment. Kyari explained that the failure to pay cash-call arrears in the last three months was meant to ensure that the issues surrounding the agreement were settled.

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“The money is there. We will pay as soon as the issues are resolved by the end of the week,”Kyari stated, adding that on the Okpai Independent Power Project, the issues that led to the delay in payment had been resolved and payment would be effected as soon as possible.

“We will work with you. You can count on us”, he assured the Agip team and urged them to fast-track the phase 1 of the rehabilitation of the Port Harcourt Refinery to ensure that it was delivered before the scheduled date of October 2019.

In his response, Guido said that the company was aligned with the GMD’s three-point agenda of growing reserves, production, and cutting cost.

He, however, listed a number of challenges that had hampered its operation and urged the NNPC management to help resolve them in order to meet its target of growing production from the JV assets by 30 per cent over last year’s rate.

At a maiden town hall meeting with staff of the corporation at the NNPC Towers, Abuja, yesterday, Kyari assured them that his management would continue with the current efforts to revamp downstream infrastructure to ensure 90 per cent pipeline availability, automation of processes in product distribution system, and growth in NNPC retail’s market share to 30 per cent.

Kyari charged the staff to support his management to deliver on all the objectives and brace up for greater challenges ahead, noting that as the main enabler of the Nigerian economy, the NNPC must entrench processes to ensure steady production growth and assured profitability across all tiers of the industry.

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The highpoint of the meeting was the presentation of his agenda titled: “Roadmap to Global Excellence”, which encapsulates the strategic focus of his management.

Under the roadmap, NNPC operations would be anchored on Transparency, Accountability and Performance Excellence (TAPE).

The NNPC boss explained that while the transparency component of the agenda was aimed at maintaining positive image, share values of integrity and transparency to all stakeholders, the accountability leg of the campaign would ensure compliance with business ethics, policies, regulations and accountability to all stakeholders.

In terms of the two-prong item of Performance Excellence, Kyari said that the idea was to entrench a high level of efficiency anchored on the efficient implementation of business processes which would also emplace an appropriate reward system for exceptional performance among the workforce.

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Kyari said that under his watch, the NNPC would continue to give attention to the safety and the security of personnel and assets while creating a business environment that would be anchored on technology and innovation to improve efficiency which would ultimately create the desired outcome of strengthening the NNPC brand.

On the issue of domestic refining capacity, the NNPC boss said that the corporation would pursue the ongoing refinery rehabilitation to a successful conclusion while deliberate efforts would be made to encourage the establishment of new private refineries to ensure that the country becomes a net exporter of refined petroleum products.

He said that the corporation would sustain the ongoing exploration activities in the inland sedimentary basins to improve reserve while pursuing a programme to grow the NPDC, adding that reports from the exploration drilling in the Kolmani River in the Gongola Basin were very encouraging.

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