How I will run NNPC – Maikanti Baru

The newly appointed Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Maikanti Baru, on Friday pledged to work closely with staff to find lasting solutions to the challenges facing the industry.

The pledge was part of a 16-point agenda he unfolded shortly after taking over from his predecessor and Minister of State for Petroleum Resources, Ibe Kachikwu.

Mr. Baru said it was Mr. Kachikwu who recommended him to President Muhammadu Buhari for his appointment. He said his management would continue the on-going comprehensive restructuring of the NNPC, describing it as inevitable.

Assuring the oil workers that he would exploit their experience to maximize output under the on-going restructuring exercise, Mr. Baru said such engagement would be a key success for his administration.

In his handover statement, Mr. Kachikwu said within the period he remained at the helm of affairs at the corporation in the last 11months, he recorded modest achievements. He mentioned the achievements to include sanitizing the fuel supply and distribution system with the introduction of the downstream liberalization regime; reducing upstream contracting period to nine months from initial average of two years, and redirection of NNPC on the path of profitability as witnessed in the May 2016 NNPC monthly financial report, which posted a profit of N274 million.

16 Point Agenda of the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Maikanti Baru
Implement new business models that would grant autonomy required to empower the strategic business units and autonomous business units deliver on their mandates
Provide relevant directions and controls to ensure their growth and profitability
Continue exploring ways of relieving government the burden of cash calls obligation as well as address and defray the agreed cash call arrears of the IOCs
Restore oil and gas production and grow the national reserve portfolio;
Increase crude oil production capacity by the NNPC upstream subsidiary, the Nigerian Petroleum Development Company (NPDC)
Review all weak contractual agreements and terminating bad ones as appropriate
Leverage on equity positions to cause the development of key gas assets for both domestic and export
Pursue the expansion of gas networks across the country
Repair and restore oil and gas pipeline infrastructure and providing 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 the drive to make the venture businesses profitable and ensure service delivery
Continue the drive to make the venture businesses profitable and ensure service delivery
Ensure adequate staff welfare and motivation, training and capacity building.
Creating an all-inclusive internal advisory council on security, comprising representatives from NNPC, the international oil companies, the Petroleum and Natural Gas Senior Staff Association and National Union of Petroleum and Natural Gas Workers, and security operatives to brainstorm and address host community agitations to complement government security team’s efforts in the Niger Delta region

He listed other achievements to include prompt remittance of oil proceeds to the Federation Accounts; transparency and accountability through the monthly publication of NNPC financial reports; and review of old models of contracts like crude oil swap which saved the NNPC money annually.

The minister said his management also recently secured an $80 billion memorandum of understanding with several Chinese investors interested in coming to help develop various infrastructure in the country’s oil and gas industry.

Other items in the 16-point agenda include:

• creating an all-inclusive internal advisory council on security, comprising representatives from NNPC, the international oil companies, the Petroleum and Natural Gas Senior Staff Association and National Union of Petroleum and Natural Gas Workers, and security operatives to brainstorm and address host community agitations to complement government security team’s efforts in the Niger Delta region;
• implement new business models that would grant autonomy required to empower the strategic business units and autonomous business units deliver on their mandates;
• provide relevant directions and controls to ensure their growth and profitability;
• continue exploring ways of relieving government the burden of cash calls obligation as well as address and defray the agreed cash call arrears of the IOCs;
• restore oil and gas production and grow the national reserve portfolio;
• increase crude oil production capacity by the NNPC upstream subsidiary, the Nigerian Petroleum Development Company (NPDC);
• review all weak contractual agreements and terminating bad ones as appropriate;
• leverage on equity positions to cause the development of key gas assets for both domestic and export;
• pursue the expansion of gas networks across the country;
• repair and restore oil and gas pipeline infrastructure and providing 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 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, and
• ensure adequate staff welfare and motivation, training and capacity building.