NNPC Ready for Change - Official
By Chinazor Megbolu
The National Petroleum Investment Services(NAPIMS) Group General Manager, Mr. Philip Chukwu has confirmed that Nigeria National Petroleum Corporation (NNPC) is poised for transformation of their operational procedures to ensure adequate fulfilment of their mandate.
He made this statement during the launching of NNPC Transformation Project at Eko Hotel and Suites Expo Centre, Victoria Island, Lagos.
While speaking at the event,Chukwu stressed the need for NNPC to secure the future. He explained that NNPC has been given a mandate to achieve an aggressive, sustainable, growth agenda in the Nigeria oil and gas industry and that is the reason behind NAPIMS' carrying out with the transformation change called Project PACE. According to him, "Transformation must be comprehensive, multifunctional and integrated based on a shared understanding of NNPC's strategic intent, objectivity, goals focus on the human component and transform the workforce" he assured. Again, he said that the launching of transformation Project PACE is for a brighter future which illuminates the desired patronage of NNPC as a key player in the global energy sector. Furthermore, he added that PACE is positioning and aligning NNPC to greater, higher performance and rebirth respectively. The changes is from old to new ways of doing things, new processes, new systems representing positive, growth and change technological advancement that show NNPC as a corporation that is poised for change" he stated.
Mr. Chukwu also addressed the issue of National Oil Companies (NOC) which holds 75% of the world's oil reserves and have limited access to low cost capital due to high risk rating. He disclosed that NOC are moving towards full and partial privatisation and commercialisation which has been a challenging factor to NNPC and today, NNPC is also privatising and consolidating. On the challenges facing NNPC,Chukwu cited an example with other NOC members of about the same age with NNPC . "Republic of Norway has about $34 Billion revenue to that of NNPC's $5 Billion. NNPC has recorded relatively lower successes compared to other NOC's... NNPC has the lowest revenue in the whole world" he said.
On the need for change in NNPC, Mr Chukwu said that cost have gradually escalated over the years and will exceed revenues if not checked. He also stated that insufficient funds to meet current and emerging business demand of NNPC is fast running out of capital. "NNPC no longer have enough money to fund every thing hence the need for change' he added.
While rounding up with his address,Chukwu said that the transformation Project PACE must be carried out and urged the 200 volunteered staff of the project to be ready with the task ahead in order to help reposition NNPC to stand on its feet again. According to him, "change is imperative, we either change or quench" he disclosed.
Dr. Edmund Ayoola, NNPC's Group Executive Director(Exploration and Production) who also spoke at the occasion, responded to an issue raised by Dr. Thomas John, former GMD of NNPC concerning the review of on-going transformation process that gives NNPC legislative backing, he stated that the failure to amend the said legislative act could mar NNPC's successes in the re-engineering project. He also assured that the matter would be negotiated with the Federal Government by NNPC consultants, shell manufacturing services and Accenture. Dr John who pointed out earlier that the legislative Act enacted in 1969 by a military regime, added that for the Transformation to achieve success, there would be need for an agreement to be reached between NNPC Management Federal Executive Council and the National Assembly on how the project should be run.
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