Nigerian National Petroleum Corporation (NNPC) said it has created security management platforms that would enable it identify and evaluate risks, develop and superintend implementation of investigations, aggregate and deploy necessary resources to guarantee peaceful business environment in the Niger Delta.
NNPC Group Managing Director, Dr. Maikanti Baru, who stated this in an end of year message to staff of the corporation, restated NNPC’s commitment to implementing a robust security and stakeholders’ strategy that would ensure that peace reigned in the industry’s operational areas.
Baru also attributed the recent increase in the country’s oil and gas reserves to 37 billion barrels and 192Tcf respectively to the relative peace that was instituted in the Niger Delta. He explained that over the years, NNPC adopted strategies to ensure it’s operational profitability, citing the renegotiation of all existing contracts which had enabled his management team achieve substantial value realisation of between 5-30 per cent discounts.
“This singular effort translated to substantial cost savings in favour of NNPC,” the GMD noted.
Baru expressed delight in the completion of negotiations with NNPC JV partners towards the resolution of cash call funding challenges through payment of arrears that were owed the partners. He said the feat was achieved by developing a clear payment plan as well as the pursuit of an alternative funding strategy, stressing that arrears of up to December, 2015 had been fully reconciled, with repayments plan also agreed upon.
He said the ultimate objective of the signed agreements between NNPC and JV Partners was to enable NNPC transit into an Incorporated Joint Venture (IJV) business model for all the current Joint Ventures. The Group Managing Director declared that with the support of his staff and other industry critical stakeholders, NNPC was able to bring stability to petroleum products’ supply and distribution situation in the country.
Baru said NNPC had commenced the implementation of the 12-key Business Focus Areas developed by his management team which, he said, would enhance the corporation’s business performance, adding that his team had also completed arrangements to put in place structures that would enable smooth implementation of new business models for its Strategic Business Units and companies nationwide.
The GMD, expressed appreciation to President Muhammadu Buhari who, he said, provided enormous support to his team’s efforts to reposition the NNPC. He also commended the Minister of State for Petroleum Resources, Ibe Kachikwu, whose able leadership, he said, was a source of strength to his team.
Copyright Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.