Panacea for insecurity in sector, by NNPC
The Nigerian National Petroleum Corporation (NNPC) has unveiled plans to tackle the issue of insecurity in the Niger Delta region, low state of capacity utilisation of nation’s refineries and challenges of petroleum product supply.
The move, described as a new focus to move the nation’s oil sector forward, was disclosed at a one-day meeting of the Group Managing Director of the NNPC, Dr. Maikanti Kacalla Baru, former Group Managing Direcetor of the corporation and the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu.
Already, stakeholders have vowed to be proactive in handling the current challenges of the oil and gas industry.
Specifically, 12 Business Focus Areas towards putting the Corporation on the path of growth and profitability was presented.
They expressed concerns on the declining production level and its attendant consequences on the environment and the nation’s revenue, lamenting that if the situation remains unchecked, it could adversely impact the corporation and the sector generally.
According them, there is the urgent need for government and security agencies to restrategise as well as engage the various host communities, establish social and traditional structures to develop an actionable partnership framework toward finding a lasting solution to the present unrest.
They expressed concern about the increasing negative perception of the corporation by Nigerians especially in terms of opaqueness and accountability and called on the corporation to educate Nigerians on its activities as a commercial entity managing the nation’s assets in trust.
The forum also agreed that the refineries be rejuvenated using the Original Equipment Manufacturers 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.
Meanwhile, NNPC received commendation for resolving the fuel supply crisis and urged the corporation to adopt measures that will ensure sustenance of seamless supply of petroleum products nationwide.
Premium Motor Spirit price cap of N145 per litre, they noted, is not congruent with the liberalisation policy especially, the foreign exchange rate and other price determining components like crude cost, Nigerian Ports Authority charges remaining uncapped.
It was also resolved that funding of JV Operations should be a first line charge to oil revenue to ensure sustainable production and reserve growth.
The oil chiefs noted that for effective functioning of any national oil company, the technical components of the country’s exploration and production must be an integral part of the framework.