NNPC seeks downward review of oil production cost
Lagos -- The new group managing director of the Nigerian Nigerian National Petroleum Corporation, NNPC, Mallam Mele Kyari is seeking the cooperation of oil exploration and producing companies for a downward review of the cost structure of crude oil production in the country. Speaking when the management of Chevron Nigeria Limited, CNL, led by its Managing Director, Jeff Ewing, visited the NNPC Towers in Abuja, Kyari said a downward review of the cost structure of crude oil production was necessary to boost profit and revenue for the country.
The group managing director, who urged CNL to work closely with the corporation in this regard, also asked Chevron for collaboration to establish a condensate splinter refinery.
He said that setting up refineries to end the shame of fuel importation was not a
responsibility for NNPC alone, but also for its joint venture, JV, partners.
“We hold Chevron Nigeria Limited (CNL) in very high esteem for her efficiency and cost optimisation. We look more up to the company to increase production and reserve, reduce cost and increase local refining capacity,” Kyari stated as he urged the company to further collaborate with NNPC to increase crude oil production and grow reserves in the country.
In another development, the NNPC boss, in unveiling the road map for his tenure, has promised that his administration will ensure 90 percent pipeline availability.
He said in a statement that the NNPC would continue with the current efforts to revamp downstream infrastructure to ensure 90 percent pipeline availability, automation of processes in product distribution system, and growth in NNPC retail’s market share to 30 per cent.
According to him, the
corporation will leverage on the existing Direct-SalesDirect-Purchase product supply arrangement to guarantee energy security for the nation.
He indicated in his agenda outlined in the document, titled 'Roadmap to Global Excellence', that NNPC operations under his management would be anchored on Transparency, Accountability and Performance Excellence, TAPE.
Kyari explained that while the Transparency component of the agenda was aimed at maintaining positive image, share values of integrity and transparency to all stakeholders, the Accountability leg of the campaign would assure compliance with business ethics, policies, regulations and accountability to all stakeholders.
In terms of the two-prong item of Performance Excellence, he said the idea was to entrench a high level of efficiency anchored on efficient implementation of business processes which would also emplace an appropriate reward system for exceptional performance among the workforce.
Kyari also stated that under his watch, the NNPC would continue to give attention to safety and security of personnel and assets while creating a business environment that would be anchored on technology and innovation to improve efficiency which would ultimately create the desired outcome of strengthening the NNPC brand.