Former NNPC GMDs warn of possible crippling of oil industry

7 years ago

Former NNPC GMDs warn of possible crippling of oil industry

Former Group Managing Directors, GMD, of the Nigerian National Petroleum Corporation, NNPC, has warned that if left unattended to, the current challenges bedevilling Nigeria’s oil and gas sector was capable of leading to its total collapse.
The erstwhile NNPC bosses disclosed this yesterday after a brainstorming session with corporation’s current GMD, Dr. Maikanti Baru, saying that the federal government and stakeholders must now chart a new course to reform the country’s oil industry.

The session in Abuja, was attended by: HRM (Dr.) Edmund Daukoru, Chief Odoliyi Lolomari, Dr. Thomas M. A. John, Engr. Lawrence Amu, Dr. Jackson E. Gaius-Obaseki, Engr. Funsho Moses Kupolokun, Engr. (Dr.) Abubakar Lawal Yar’Adua and Dr. Joseph Thlama Dawha.

The former GMDs also indicated that certain operations of the NNPC would have to be reformed to give it a chance of surviving through the prevailing challenges in the industry.

A statement issued by the Group General Manager Public Affairs of the NNPC, Mallam Garuba Deen Muhammad, disclosed that the meeting with the former heads of the corporation included the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu.

The statement said during the meeting, Baru presented the operational status of NNPC and the industry as well as his ’12 Business Focus Areas’ with which he hoped to reposition the NNPC on the path of growth and profitability.

The former NNPC bosses, according to the statement, jointly reviewed the current state of the industry, deliberated on ways to resolve issues militating against the progress of the sector and recommended measures to move it forward.

“During the brainstorming session, they expressed serious concerns on the declining production level and its attendant consequences on the environment and the nation’s revenue.

“They further agreed that if the current situation remains unchecked, it could lead to the crippling of the corporation and the nation’s oil and gas sector, the mainstay of the Nigerian economy,” read the statement.

It added that, following their deliberations, the former GMDs identified the key challenges , noting that “insecurity is threatening production and damaging the Niger Delta environment.”

According to the statement, they therefore expressed the “urgent need for government and security agencies to refocus as well as engage the various host communities as well as established social and traditional structures to develop an actionable partnership framework toward finding a lasting solution to the present unrest.”

“The former GMDs are concerned about the increasing negative perception of the corporation by Nigerians especially in terms of opaqueness and accountability. They therefore called on the corporation to educate Nigerians on NNPC activities as a commercial entity managing the nation’s assets in trust.

“The former GMDs advised that the refineries be rejuvenated using the Original Equipment Manufacturers (OEMs). Also, the refineries 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.

“The former GMDs commended NNPC for resolving the fuel supply crisis and urged the corporation to emplace measures that will ensure sustenance of seamless supply of petroleum products nationwide.

“They, however, noted that the PMS price cap of N145/litre is not congruent with the liberalisation policy especially with the foreign exchange rate and other price determining components such as crude cost, Nigerian Ports Authority (NPA) charges etc. remaining uncapped,” the statement explained.

It further noted: “The former GMDs advised that funding of JV operations should be the first line charge to oil revenue to ensure sustainable production and reserve growth.”

On oil exploration in Nigeria’s frontier areas, the statement said: “The former GMDs endorsed Mr. President’s steer for sustai