Monday, 4th December 2023

Wabote charges oil firms to embrace corporate governance

By Collins Olayinka, Abuja
08 August 2023   |   3:33 am
Imbibing principles of corporate governance will sustain the operations of oil and gas companies, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has said.

Executive Secretary of the NCDMB, Simbi Wabote

Imbibing principles of corporate governance will sustain the operations of oil and gas companies, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has said.

Speaking at the rebranding of the Niger Delta Exploration and Production (NDEP) (now Aradel Holdings), the executive secretary said many local oil and gas companies died because they did not adhere to corporate governance principles.

He lauded the management of Aradel Holdings for setting high standards of corporate governance, saying: “One of the incredible things the Chairman, Ladi Jadesimi; former Managing Director, Dr Layi Fatona, and their team have done is instilling the tenets of corporate governance.

“That is why the company is succeeding. The owners of the business are not contractors. They do not engage contractors; they do not engage in round tripping. That has led to their success.”

Wabote described Aradel as a pacesetter, noting that it has made significant returns to its joint venture partners.

“They are one of the local companies that NNPC Limited is proud to associate with. NCDMD is also proud of their success and we will continue to support them,” he stated.

The NCDMB boss also charged indigenous producers to emulate Aradel and to take corporate governance seriously, recommending that owners of businesses should detach themselves from the daily operations of their organisations.

Dwelling on local content development, Wabote challenged Aradel to champion the development of local content, stressing that the implementation of the Nigerian Content Initiative and the Nigerian Oil and Gas Industry Content Development (NOGICD) Act has enabled indigenous producers to thrive.

He insisted that it is the responsibility of Aradel and other local producers to support local content, protect and enhance it, create jobs, grow technology and develop the country’s natural resources.

He stressed that the percentage of unemployed Nigerians was about over 30 per cent and warned that it would be a grave mistake for the oil industry to deemphasize local manufacturing and local production.

He also challenged Aradel to play an active role in the acquisition of assets being divested by some international operating oil companies.

Jadesimi said the company has operated for three decades and pioneered several initiatives, including marginal field operations, one of which is the Okpele Field. He said it has grown the daily production of Okpele from about 1,000 barrels of crude oil per day to 13,000 barrels.

The company is also a fully integrated oil and gas company and also pioneered modular refinery initiatives with the first train of 1,000 barrels per day, which has since expanded to 11,000 barrels per day.

On his part, the Managing Director of Aradel, Adegbite Falade, explained that the name is an acronym of the founding Chairman, late Chief Aret Adams, and the firm’s original name and area of operations – Niger Delta region.

The new name also signifies the company’s resilience and preparedness to meet the challenges of energy transition while emerging as a leading energy company in the country, Falade said.

Falade also announced that the company’s modular refinery would soon begin to refine premium motor spirit alongside other major projects the firm plans to embark on.

“Aradel will continue to be a resilient company that adapts and reinvents itself for the future. We are a company that is focused on providing energy solutions and consider ourselves a critical part of energy security in the nation. Our focus remains on providing energy access to every community we live and operate in, and beyond.

“Our new name represents not only our future but also reflects our past and unflinching pride in the legacy of our forefathers. The A stands for accountability, the R for resilience, the A for adaptability, the D for diversity, the E for excellence, and the L for leadership. Today is the future that was dreamt of thirty years ago, and today we start another dream that will become a reality,” he said.

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