NNPC KICKS AGAINST PIB, EXPRESSES FEARS ABOUT DECLINING OIL PRODUCTION

Oil production in Nigeria has declined by 15.1 percent less than 1.82 million barrels per day produced in the first quarter of 2016, says the Central Bank of Nigeria.

But the corporation observed that insecurity is threatening production and damaging the Niger Delta environment and that there is the urgent need for government and security agencies to refocus as well as engage the various host communities as well as established social and traditional structures to develop an actionable partnership framework toward finding a lasting solution to the present unrest.

Group Managing Director of the NNPC, Dr. Maikanti Kacalla Baru and the former GMDs of the Corporation including the immediate past GMD and the current Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu made the observation at a one day meeting at the Transcorp Hilton Abuja.

They observed that the current Petroleum Industry Bill (PIB) which proposed the incorporation of NAPIMS and taking it out of the NNPC will inhibit the effective functioning of the NNPC as a National Oil Company (NOC).

“This will make NNPC to operate at a different level compared to its peers in other OPEC Member Countries”, they said and strongly advise against taking NAPIMS out of NNPC.

The former GMDs noted that for effective functioning of any National Oil company (NOC), the technical components of the country’s Exploration & Production (E & P) must be integrated as part of the country’s NOC. They therefore posited that NAPIMS being the technical component of Nigeria’s E & P, and not just an investment vehicle, must remain with and managed by NNPC, adding that taking NAPIMS out will make NNPC an ineffective NOC.

They further agreed that if the current situation remains unchecked, it could lead to the crippling of the Corporation and the nation’s Oil & Gas Sector, the mainstay of the Nigerian economy.

The former GMDs expressed serious concerns about the continued dwindling of NNPC revenue and advised that the Corporation should pay particular attention to its revenue-generating entities such as the Nigerian Petroleum Development Company (NPDC), Retail and the Refineries to return the Corporation to high performance, growth and profitability.

During the meeting, the GMD presented the status of the Corporation and the Oil & Gas Industry. He also presented his 12 Business Focus Areas towards putting the Corporation on the path of growth and profitability.

The GMD and the former GMDs jointly reviewed the current state of Nigeria’s Oil & Gas Industry, deliberated on ways to resolve issues militating against the progress of the sector and recommended measures to move the sector forward.
During the brainstorming session, they expressed serious concerns on the declining production level and its attendant consequences on the environment and the nation’s revenue.

The former GMDs advised that the refineries be rejuvenated using the Original Equipment Manufacturers (OEMs). Also, the refineries must be restructured to operate as an Incorporated Joint venture (IJV) similar to the Nigerian Liquefied Natural Gas (NLNG) model with credible partners having requisite technical and financial capabilities.