NNPC bids for oil blocs in three African states
By Yakubu Lawal,
Asst. Energy Editor
T HE Nigerian National Petroleum Corporation (NNPC) is expanding its operations beyond the shores of the country.
In a drive aimed at making the corporation an international player in the upstream sector of the oil industry, the management has concluded arrangements to own oil blocs in three African countries: Angola, Gabon and Equitorial Guinea.
To meet with the competition in the international scene, the NNPC is restructuring its operations in line with those of ground-breaking Petrobras of Brazil, Malaysia's Petronas and Norway's Statoil.
The NNPC Group Managing Director, Mr. Funso Kupolokun, at the weekend in Abuja, said that under the scheme, the corporation would emerge as an integrated international oil and gas company.
The three African countries targeted by the NNPC are noted for their huge hyro-carbon resources. They have already opened bids under an international competitive bidding process for the blocs.
The Guardian learnt that some managers from the National Petroleum Investment Management Services (NAPIMS), a subsidiary of the NNPC in charge of upstream activities, would soon visit Angola to seal the deal.
Kupolokun said that the operations of another of its subsidiary, the Nigerian Petroleum Development Company Limited (NPDC) would be "strengthened in this whole journey to cope with the challenges of upstream oil exploration and production activities."
The NNPC boss further said that the kind of investment the corporation was keen on might not necessarily be the kind that would be 100 per cent acquisition but that which identifies viable ventures in partnership with any multi-national companies to enhance capacity building for Nigerian workers.
He said: "Indeed, we also intend to bid for blocs outside Nigeria. For instance, in Africa, if we see somebody offering offshore blocs, we will put in as NPDC. Nobody is taking the corporation away from investment, but I am not quite comfortable with our current cash flow. Once we can stay afloat, once we can make profit from what we are doing, then there will be no more problem."
To achieve the goal of a wholesale transformation of the NNPC, the management has engaged the services of two firms: Shell Manufacturing Services (SMS) and Accenture to complete the exercise in the next 24 months.
On downstream activities, Kupolokun said the corporation now operates five petrol stations nation-wide. By 2007, he said the number of retail outlets would be raised to 36.
"We will buy smaller stations and rehabilitate them as part of our new vision to strengthen the corporation.
"In terms of investment outside Nigeria, I am seriously looking at African continent," he stated.
Kupolokun listed the objectives of the transformation exercise as achieving improved levels of international competitiveness and sustainable profitability by expanding participation in the oil and gas industry and pursuing effective deregulation;
- growing Nigerian reserve and production in the upstream sector;
- obtaining an upward review from the Organisation of Petroleum Exporting Countries (OPEC) quota;
- monetising Nigeria's considerable gas assets optimally; and
- improving Nigeria's capacity and content, by transiting from an oil company to an integrated oil and gas organisation.
Kupolokun described the NNPC's operations as largely dependent on manual process with lack of clear-cut roles in contract award and slow pace of work.
"There has been a serious deterioration in capability and capacity of our people and hence their productivity", he said.
The NNPC chief explained that the two firms leading the corporation in the change process would define an approach that would yield results in the short-term and in the least disruptive manner.`
