NNPC says it can now account for every barrel of crude oil sold

NNPC TOWERS
NNPC TOWERS

The Nigerian National Petroleum Corporation (NNPC) on Thursday said it can now account for every barrel of crude oil it sells, as 98 per cent of all its transactions involving supply, marketing and sale of Nigeria’s crude oil globally are now automated.

One of the challenges the country’s oil and gas industry has faced over the years has been the inability of the NNPC to know real time, the exact volume of crude oil sold.

Attempts to automate its entire operations over the years, informed the investment of billions in the deployment of the SAP Enterprise Resources Planning, ERP, an electronic management solution deployed to monitor real-time operations of a network of subsidiaries and affiliates in various locations.

However, the attempts to automate the process, which comprises different modules for standard business, financial, contracts management and personnel information, stalled, turning out to be a channel for corruption for some top officials of the corporation.

But, Group General Manager, Crude Oil Marketing Division of the Corporation, Mele Kyari, said a complete automated system that would enable the corporation achieve end-to-end monitoring of every barrel of crude oil sold in the country would be achieved in 2018.

“Today at a click of a button, we (NNPC) can tell you how much crude oil is sold, at what price, who bought it and where it has gone to,’’ Mr. Kyari told Oil & Gas Forum, an NNPC Weekly TV show.

He said the projection was to operate a complete paperless crude oil data management system, ”in line with the ongoing transformation reforms of the operational processes in the NNPC witnessed since 2015.”

Mr. Kyari listed some of the reforms to include the open bid process to select customers to lift and purchase Nigeria’s crude oil grades and emplacement of efficient crude for product import processes.

He said the automation of these processes resulted in savings of over $1 billion in the last one year, coupled with the introduction of improved pricing system, which he said has evolved into a robust and auditable pricing mechanism.

The GGM also said the reforms had helped the country harmonise its crude oil data and lifting information, provide access to major internationally recognised reporting agencies, like Platts and Argus Media, to achieve real time reporting of Nigeria’s crude oil transactions.

Besides, he said, this development also enabled the country to eliminate the perennial disagreements with its major partners and interest groups, like the Organisation of Petroleum Exporting Countries, OPEC, on actual production and crude oil lifting figures.

On the recent Policy Dialogue on crude oil sales and reserve management in Nigeria organised by the African Centre for Leadership, Strategy and Development, Mr. Kyari said the forum provided the corporation an avenue to clarify some misinformation on crude oil marketing operations.

“NNPC will continue to engage members of the public and other critical stakeholders to keep them abreast with innovations in the supply, marketing and sale of the various grades and blends of Nigeria’s crude oil across the world,” Mr. Kyari said.

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