As the Nigerian National Petroleum Corporation (NNPC) continues to receive commendation over its N287 billion profit in 2020, the Group Managing Director Malam Mele Kyari, started the week by charging the staff to work hard to sustain the profitability trend as Nigerians will no longer condone losses from the Corporation.
Kyari at a Town hall meeting which held at the NNPC Towers, Abuja, with staff joining from NNPC Offices across Nigeria assured that the corporation would continue to imbibe the best practices.
He applauded the staff for breaking the profitability jinx, adding that things cannot be the same with the Corporation again, especially with the passage of the Petroleum Industry Act (PIA) which mandated it to run under the Company and Allied Matters Act (CAMA).
He stressed that a slide back into losses for three consecutive years would mean liquidation for the Corporation.
“We cannot continue in the old path if we are not to run the risk of going under. We can do better. We have to do better because no one will take losses from us again,” he said.
He outlined the principles that propelled the Corporation from loss into profitability to include cost control, transparency, accountability and ethical conduct and urged staff to continue to uphold and abide by them.
On the need for high ethical conduct, he urged staff to red-flag every conduct that could prove inimical to the progress of the Corporation by either reporting such directly to him or deploying any of the whistle-blowing platforms that have been activated by the Corporation.
On the PIA, he explained that NNPC businesses must comply with the regulations as would be provided by the two regulatory agencies established by law to regulate both the upstream and downstream sectors of the industry.
He pledged to remain committed to the people strategy of the Corporation by promoting the welfare of staff, adding that the cooperation of the two in-house unions, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) were instrumental to the progress made by the Corporation.
In her remarks, the Group Executive Director, Corporate Services, Mrs Aisha Katagum, pledged the support and loyalty of the management and staff to the GMD’s leadership.
Also, Stakeholders especially members of Civil Society Organisations, in the week under review applauded NNPC’s Transparency Strides and ₦287billion profit in its 2020 Audited Financial Statement.
The applause came from participants at the Budgit Oil and Gas Industry Stakeholders’ Forum which held in Abuja.
The Chief Executive Officer of Budgit, Gabriel Okeowo, noted that NNPC had become more responsive and open than in the past thereby enabling a more cordial relationship between the Corporation and the civil society.
He urged the management of NNPC to sustain the new approach.
In a presentation, Country Director, Oxfam, Tijani Hamza, said NNPC in the last two years had been transparent and open, adding that the corporation has made a mark in the global transparency arena through the implementation of the Extractive Industry Transparency Initiative’s (EITI) inclusive framework.
On his part, Technical Director of the Nigeria Extractive Industries Transparency Initiative (NEITI) Dr Dieter Bassi, said the declaration of profit by the NNPC in a year the global economy was affected by the COVID-19 pandemic was a remarkable feat.
Responding to questions on the operations of the Corporation, Kyari, who was represented by the Group General Manager, Corporate Planning & Strategy, Mrs Oritsemeyiwa Eyesan, said the positive performance recorded was as a result of a new business strategy adopted by the NNPC to mitigate the impact of the pandemic.
The GMD affirmed the commitment of the Corporation to transparency and accountability, stressing that NNPC was open to questions on any aspect of its operation.
Other participants expressed satisfaction with the leadership style of the GMD, Malam Mele Kyari.
In the week under review, the NNPC also donated 500 Seater Lecture Theatre to University of Maiduguri (UNIMAID). The Vice Chancellor of the University, Prof Aliyu Shugaba commended NNPC for its contribution to the development of the Nigerian education system through its corporate social responsibility programmed.
Shugaba, who gave the commendation during the inauguration of the theatre, expressed satisfaction with the quality of job and the intervention of the corporation to the infrastructure needs of Nigerian universities.
Speaking at the ceremony, the GMD represented by the Manager, Community Impact investment, Mrs Doris Ohia restated the commitment of the corporation to the development of education and nation building.
On Corporate Social Responsibility (CSR) the NNPC Advance Leadership Programme Class 099 has extended its hand of charity to the Mararaba Gurku community in Nasarawa State with the rehabilitation and donation of equipment to the Primary Healthcare Centre in the community.
Speaking at the inauguration and handing over of the project, the Manager, Leadership Development of the Talent Management Department, Mrs Nkechi Anaedobe, stated that the Corporate Social Responsibility project was a practical display of the leadership principles taught to members of the class, stressing that one cannot be a leader without thinking of others.
The President of the Class who is also known as “Phoenix”, Mr Ahoemwen Aigbangbee, explained that the choice of the project was informed by the need to compliment government’s efforts in providing healthcare facilities and services in Nigeria.
On his part, the Chairman of the CSR committee of the class, Mr Adams Agbo, explained that the choice of the location of the project was informed by the huge population of Nigerians who reside in the community, adding that the project was targeted at impacting as many people as possible in keeping with Corporation’s slogan: “We touch your lives in many positive ways”.
Receiving the donated items, the officer in charge of the Health Centre, Mrs Dorcas Haruna, said the centre would be able to admit eight patients at a time, adding that they would put the power generating set and other equipment to good use. She also thanked the class and the NNPC for this generous gesture.
Highlighting the significance of the gesture, Deputy Director, Health, Karu local government area, Mr Yusuf Asibat, stated that a well-equipped and efficient Primary Healthcare Centre, being the first point of call for the people, would lead to less congestion at the main hospitals thereby making healthcare available to all.
The intervention of the NNPC ALP Class 099 in the health Centre include the painting of the exterior of the Centre, installation of interlocking tiles, donation of a 7.5KVA generator, two delivery beds, three observation beds, sampling bottles for laboratories, eight complete sets of hospital beds which include mattresses, side lockers and drip stands.
Global Crude Oil Outlook in the week under review
Oil price firms before OPEC+ policy meeting
Oil prices rose before an OPEC+ meeting at which the producer club is expected to stick to a plan to add 400,000 barrels per day (bpd) each month to the end of December.
The Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+ has raised its forecast for oil demand next year, in a move that might help to build a case for raising output.
Brent crude for November delivery gained 18 cents, or 0.3 per cent to touch 71.81 dollars a barrel, U.S. West Texas Intermediate (WTI) crude for October was up 17 cents, or 0.3 per cent at 68.67 dollars.
U.S. President Joe Biden’s administration has urged OPEC+ to boost output to tackle rising gasoline prices that it views as a threat to the global economic recovery.
“One foregone conclusion is that they will not add additional barrels as per Washington’s recent request. Nor will they press the pause button on easing supply curbs,” said Stephen Brennock of oil broker PVM.
Prices were also supported by a U.S. industry report showing that crude inventories fell more than expected last week, though much U.S. refinery capacity remains offline in the wake of Hurricane Ida.
U.S. crude stocks fell by 4 million barrels for the week to Aug. 27, according to two market sources, citing American Petroleum Institute (API) figures.
Ahead of the weekly Energy Information Administration report, analysts estimated crude stocks would drop by 3.1 million barrels.
However, U.S. crude prices are expected to remain under pressure as offshore oil and gas production in the Gulf of Mexico gradually recovers, though refinery operations are likely to take longer to return to normal, analysts say.
What You should Know
The implementation of the Petroleum Industry Act (PIA) 2021, the NNPC will now operate under the Companies and Allied Matters Act, CAMA
As CAMA company, the NNPC is expected not to declare losses for three consecutive years, otherwise, it would be declared bankrupt.
The three per cent Provision for host communities in the PIA is from the total oil and gas industry operations in the previous year.
The thirty percent allocation from NNPC profits for frontier explorations is, in reality, could be less than three per cent of the entire industry expenditure in a year.
The PIA will ensure greater revenue drive to the federation account, close loopholes and ensure that multinational companies pay their fair share of oil rent?
