NNPC to focus on upstream objectives in 2005

Jan 13, 2005 01:00 AM

Nigerian National Petroleum Corporation (NNPC) has said that it would this year focus on the crucial upstream objectives of exploring alternative funding, generating additional value from gas and increasing Nigerian content in the industry.
Group Managing Director (GMD), Mr Funso Kupolokun, said in Abuja that the corporation would, this year, be largely revenue sustained and profit driven in line with the present administration's economic reforms agenda. He made it clear that NNPC would explore alternative windows of non-traditional funding given the competing demands on the federal purse.

Minister of Finance and Economic Planning, Dr Mrs Ngozi Okonjo-Iweala, had in the last quarter (Q4) of 2004 said government would take a critical look at the NNPC and make it pool in its own funding. To this end, NNPC had engaged two reputable consultancy firms Accenture and Shell Global solutions, to facilitate its transformation to a profit oriented, revenue sustained multinational oil and gas company inthe status of Petroleum of Brazil and Statoil of Norway.
The transformation programme named project pace was visioned to change the corporations mode of doing business and reposition it for challenges in the global oil and gas exploration and production business. Part of the project includes the ongoing staff rationalisation in the corporation to inject more youthful staff and phase out ageing ones.

Mr Kupolokun had made it clear at the launching of the transformation project that "we either change or quench." He said that the management of the corporation would activate measures to restructure its upstream assets to make them self funding, optimise business processes and explore non-traditional funding options. This, he said, was crucial to keep the corporation afloat in view of dwindling government largesse which takes effect this year.
On the nation's upstream gas-to-value objectives, Mr Kupolokun said a member of gas utilisation projects has been initiated to generate as much revenue from gas as from oil. He listed them to include the Nigerian Liquefied Natural Gas (NLNG) project, LNG Brass, West African Gas Pipeline Project (WAGP) and Gas to Liquid (GTL) project.

He said NNPC would strive to shore up Nigerian content in the upstream oil and gas industry to 45 % in 2006 and 70 % in 2010. He urged indigenous upstream operators to form synergies in order to pool enough financial muscle to fund projects and contracts in the industry.
According to him, NNPC is harmonising a comprehensive local content policy in the petroleum sector for the consideration of the National Assembly.

Source: Daily Champion
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