Wednesday, 21 October 2015

NNPC adopts ‘20 Fixes’ to reform operations and improve profitability

The Nigerian National Petroleum Corporation (NNPC) has adopted what it described as “20-fixes” with which it hopes to reform its operations, guarantee profitability and perhaps run a transparent national oil company.

NNPC through the “20-fixes” which are however embedded in five cardinal business objectives that it intends to pursue, plans to amongst other initiatives, attain zero tolerance for corruption, restructure its major subsidiaries as well as enhance probity in its operations across board.

Contained in its monthly financial and operational reports for the month of August, the corporation’s “20-fixes” also include its intentions to restructure Joint Venture funding and reduce cash call demands; improve retail profitability; deploy and attract focused investments; expand crude oil marketing and generate electricity profitably.

Also to be done within the initiative are, reduction and audit of running costs; restructuring of corporate centres and staff; renegotiation of existing contracts including Production Sharing Contracts (PSC); streamlining of subsidy management as well as improve security of the country’s critical petroleum pipelines.

The report, which was obtained in Abuja, also indicated that three of the corporation’s subsidiaries, the Nigerian Gas Company (NGC); Pipeline and Products Marketing Company (PPMC) and the Nigerian Petroleum Development Company (NPDC) would either be unbundled or re-kitted.

The corporation will also restructure its refining business; improve on its use of information technology for its businesses and demand for topnotch service performance from all its staff.

Accordingly, the “20-fixes” make up 20 critical issues that the corporation’s current management headed by its Group Managing Director, Dr. Ibe Kachikwu had identified and would need to be addressed in order to re-position it on the path of profitability.

Kachikwu had on his appointment stated his intentions to undertake sweeping reforms at the corporation.

He explained that the reform measures to be initiated, would be in line with the government’s intentions for the country’s oil and gas sector.

Credit: Chineme Okafor/ThisDay

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