N/Delta Militancy Capable of Shutting Nigeria’s Economy
• Call for new focus in engaging oil communities
The ongoing hostilities in the Niger Delta Region, if not urgently checked, will cripple the operations of the Nigerian National Petroleum Corporation (NNPC) and the nation’s economy, former Group Managing Directors of the NNPC have warned.
They spoke yesterday after a oneday meeting in Abuja attended by the Group Managing Director of the NNPC, Dr. Maikanti Kacalla Baru and the immediate past GMD and current Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu. The former GMDs called on government and security agencies to refocus and 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. They 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 liberalization policy especially with the Foreign Exchange rate and other price determining components such as crude cost, Nigerian Ports Authority (NPA) charges etc remaining uncapped.
On the state of the refineries, 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 endorsed Mr. President’s steer for sustaining exploration activities in the frontier basins particularly the ongoing efforts in Chad Basin and the Benue Trough. They therefore advised the GMD to pay priority attention to the Chad Basin where promising prospects are recorded
They were worried at the meeting about the level of NNPC’s debt profile. They advised that as a matter of urgency, NNPC should establish the true state of its current financial status and immediately decide on the most appropriate capitalization model.
The former GMDs noted that for effective functioning of any National Oil company (NOC), the technical components of the country’s Exploration & Production (E& P) must be integrated as part of the country’s NOC. They therefore posited that NAPIMS being the technical component of Nigeria’s E & P, and not just an investment vehicle, must remain with and managed by NNPC. Taking NAPIMS out will make NNPC an ineffective NOC.