Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Ibe Kachikwu, has hinted that all Production-Sharing Contracts, Joint Venture Agreements and all other contracts between the organisation and its partners would be reviewed to reflect current realities in the global oil and gas industry.
In a statement signed by the corporation’s Group General Manager Public Affairs, Mr. Ohi Alegbe yesterday in Abuja, he also clarified that his mandate in the corporation is to put in place an efficient, transparent and profit-oriented processes and not to embark on a mass retrenchment of the workforce.
Kachikwu stated that the mandate given to him by President Muhammadu Buhari is to turnaround the entire commercial processes and procedures in order to impact on the growth trajectory and operations of the corporation.
He said the reduction in the directorate from eight to four at the top management cadre of the NNPC is to refocus and sharpen the business aspiration of the corporation, adding that training and retraining of members of staff to align with the new vision is the next stage of the ongoing reforms.
Kachikwu reassured that the recent repositioning is to put in place the right set of skills for performance, stressing that the new arrangement provides a veritable vista for upcoming professionals in the corporation to have a speedy career path.
He stated that the NNPC under his watch would put in place mechanisms that would plug all revenue leakages in the upstream, midstream and downstream sectors while adding that all crude oil proceeds due for the Federation Account would be remitted accordingly.
Meanwhile, Nigerian Extractive Industries Transparency Initiative, NEITI, has applauded the appointment of Dr Kachikwu. A statement signed by Director of Communications, Dr Orji Ogbonnaya Orji, in Abuja yesterday saw the measures as inspiring hope and confidence in the
future of the nation.
While commending the steps taken by President Muhammadu Buhari to reposition the Nigeria National Petroleum Corporation, NNPC for greater efficiency, he said that the measures were consistent with the findings and recommendations of NEITI in its various independent audit
Orji said NEITI was delighted that the much-needed political will required to implement its recommendations had been summoned by Buhari. “It is our hope that new NNPC GMD and his new team will consider it a priority to carefully study the findings and recommendations outlined
in NEITI independent reports of the sector. “This is with a view to implementing the pending remedial issues under a plan already developed by NEITI and the Inter Ministerial Task Team
IMTT,” he said.
According to him, some of the recommendations in the plan included the addressing inadequate metering infrastructure for accurate measurement of crude, the onerous cash call regime.
He said also needed to be addressed included inefficient cost determination, pricing issues related to expired MoUs, legal agreements with oil companies.
Orji said areas that deserved urgent attention were huge costs of fuel subsidy, crude oil swap and products exchange agreements and repair of the refineries and oil theft, among others.
He said NEITI was ready and willing to provide further details on the recommendation if required.

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