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Economy | Oil & Gas

NNPC's Commercialization Should Prioritize People and Processes

Jul 18, 2022   •   by Ottoabasi Abasiekong   •   Source: WebTV   •   eye-icon 327 views

As the nation braces for the commercialization of the state oil company, the Nigerian National Petroleum Company, tomorrow, two critical issues, the 'People' and 'Processes,' should be prioritized in the company's transformation.  Mr. Chukwuemeka Osuji, Director, Oil and Gas Practice, Olaniwun Ajayi LP, made this point while speaking on the "Proposed NNPC Commercialization: Implications for the Nigerian Economy."


According to him, the NNPC's quest to transition into a leading energy champion hinges on transparency and governance. A competent and dynamic workforce will also support this.  He called on the leadership of the NNPC to embrace innovation and invest in innovative technologies that can reposition the company and make it globally competitive. 


The Oil and Gas expert lauded the steps taken by the Federal Government and stakeholders to restructure the company and stated it must move beyond legislation to implementation. He said, "It is important for the NNPC Limited to see itself as an international oil company, with the potential capacity to boost crude oil production leveraging the huge gas natural reserves in the country."


"The transition team should outline their short-term, medium-term and long-term plans on how they tend to make the NNPC viable and profitable. There should be a periodic review of the performance of NNPC Limited and its subsidiaries". He stressed the need for a thorough review of the oil and gas industry value-chain to tap into hydrocarbons as a critical driver of the nation’s industrialization plan.


He decried that the nation has not attracted significant oil and gas investments that can scale crude oil production due to the lack of reforms and the full implementation of the Petroleum Industry Act, PIA.


He was reacting to the OPEC June 2020, Nigeria's crude oil production index, which averaged 1.238m barrels per day. He noted it was still far below the target of 1.766m barrels per day and was cautiously optimistic that it would improve in the second half of 2022.


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