With a change of baton at the helms of the Nigeria National Petroleum Corporation (NNPC) from Dr Emmanuel Ibe Kachikwu to Dr. Maikanti Kacalla Baru finally completed on Friday, what will be the priority of the new Group Managing Director of the Nigerian National Petroleum Corporation (GMD) in addressing the multi-faceted challenges of the corporation as well as meeting the expectations of his employers?
Footprint to Africa reports that it is indeed a time of mixed fortunes for the oil corporation, having recorded a number of successes under the former GMD who was in the saddle for 11 months and simultaneously coming under heavy bombardment of its pipelines by Niger Delta Militants.
In the last eleven months under Kachikwu, NNPC recorded a number of major successes which include:
- Sanitization of the fuel supply and distribution matrix due to the introduction of the downstream liberalization regime
- Reduced upstream contracting period to nine months from initial upwards of two years
- The redirection of the NNPC on the path of profitability as witnessed in the May 2016 NNPC Monthly financial report which posted a profit of =N=274 million.
- Prompt remittance of oil proceeds to the Federation Accounts
- Monthly publication of NNPC Financial reports, review of old models contracts like crude SWAP which saved the Corporation a whopping $1Billion annually
- $80 billion MoU for infrastructure development with Chinese investors.
Upon accepting his new role, Baru promised to continue with the ongoing comprehensive restructuring exercise of the NNPC which he said has become inevitable and wasted no time in marshalling out his ‘12 point agenda’ for completing the task at hand.
His 12 Point Agenda
- Create an all-inclusive internal advisory council on security comprising representatives from NNPC, the IOCs, the Unions and Security Operatives to brainstorm and address host community agitations to complement efforts of the Government Security Team.
- Implement the new business models and grant the needed autonomy to the strategic business units and autonomous business units; provide relevant directions and control that would ensure their growth and profitability,
- Continue to explore ways of relieving Government from the burden of cash calls obligation as well as address and defray the agreed cash call arrears of the IOCs and
- Restore oil and gas production and grow the reserve portfolio.
- Increase crude oil production by the Nigerian Petroleum Development Company, NPDC.
- Review all weak contractual agreements and terminate bad ones as appropriate
- Leverage on equity positions to cause the development of key gas assets for both domestic and export as well as pursue the expansion of gas network across the country
- Repair and restore oil and gas pipeline infrastructure as well as provide robust security system for both detection and deterrent in conjunction with the existing security arrangement.
- Improve refining efficiency of the four existing refineries to pave the way for future expansion.
- Pursue diversification of businesses by refocusing on the implementation of Renewable Energy Programmes and Frontier Exploration Services,
- Continue with the drive to make the venture businesses profitable and ensure service delivery, entrench the culture of professionalism by doing the right things at all times through transparency, accountability, and respect for all,
- Ensure adequate staff welfare and motivation, training and capacity building.