NNPC partners DPR for value addition in oil, gas sector

The Nigerian National Petroleum Corporation (NNPC)  started its week with renewed synergy with the Department of Petroleum Resources  (DPR) to achieve their shared vision of optimising the nation’s vast hydrocarbon resources for the benefit of the government and people of Nigeria.

Group Managing Director of the NNPC, Malam Mele Kyari, and the Director/CEO of DPR, Mr Sarki Auwalu, made the commitment during a visit by the NNPC GMD to the headquarters of the regulatory agency in Abuja.

Kyari, who was accompanied by members of the Top Management Committee (TMC) of the Corporation, commended Auwalu for superintending over the transformation of DPR from a policeman of the oil and gas business to the business enabler of the sector.

While commending the DPR for its innovative approach to industry challenges, he said  that the fate of the oil and gas industry and by extension the prosperity of the nation rested on the shoulders of both the NNPC and the DPR.

He assured that the NNPC was working closely with DPR and other stakeholders to supply more gas to the domestic market.

Earlier, the DPR Director, commended the NNPC GMD for making first profit in 44 years of the corporation’s existence, the commencement of the NLNG Train 7 project, the OB3 gas pipeline project, the Ajaokuta-Kaduna-Kano (AKK) project and spearheading the passage of the Petroleum Industry Act (PIA).

He said Kyari, since assumption of office, has recorded a lot of landmarks which would remain indelible.

Also in the week, the NNPC consolidated on the remarkable achievement of declaring N287 billion profit after tax in 2020 by publishing the Audited Financial Statements (AFS) on its official website in line with president Muhammadu Buhari’s directives .

Among the highlights of the 2020 AFS is the Corporation’s group profit which rose from a loss position of N1.7billion in 2019 to a profit of N287bn in 2020, for the first time in 44 years.

Kyari attributed the turnaround to aggressive cost cutting, automation of the system and renegotiation of contracts downwards by about 30 per cent, among other tough measures.

Further highlights of the AFS revealed that while the Corporation’s group financial position increased in total current assets by 18.7 per cent compared to that of 2019, its total current liabilities increased by 11.4 per cent within the same period.

The group’s working capital remained below the line at N4.56trillion in 2020 as against N4.44trillion in 2019, the AFS further revealed.

Similarly, the Corporation’s group revenue for the 2020 financial year stood at N3.718trillion as against N4.634trillion in 2019, a decrease that could be attributed to the decline in the production and price of crude oil due to the global impact of the Covid-19 pandemic.

This is the third consecutive year that the NNPC is publishing its AFS, having done so for 2018 and 2019.

Meanwhile the  Minister of State for Petroleum Resources, Chief Timipre Sylva, in the week under review, advocated a continental energy bank to finance investment in the oil and gas industry across Africa.

Sylva made this call while playing host to the Minister of Mines and Hydrocarbons, Equatorial Guinea, H.E. Gabriel Mbaga Obiang Lima, in Abuja.

He said that the time has come for Africa to establish a financial institution to drive the development of its oil and gas sector, under the aegis of the African Petroleum Producers Organisation (APPO).

He described the signing of the Petroleum Industry Act as a watershed for the Nigerian oil and gas industry, saying “it is time to go out and market the petroleum industry”.

The Minister said that Africa still has enormous oil and gas reserves which should not be abandoned in the face of the global energy shift from fossil fuels to renewable energy, stressing that it was time to let the rest of the world know that African nations are now ready to work together.

On the need to support Equatorial Guinea with gas supply, Chief Sylva assured the Minister of Nigeria’s support.

“Equatorial Guinea has been a very good brother to us as a country, and we are very willing to cooperate and work with you,” Sylva stated.

Earlier, Obiang Lima, congratulated the Minister on the successful signing of the PIA, describing it as “a very important achievement and a sign that Nigeria is open for business”.

He harped on the need to reactivate the South-South Cooperation Development initiative with other sub- Saharan African countries such as Gabon and Cameroon.

The Minister said his country has a lot to learn from Nigeria.

Also,  Kyari, said the corporation was already doing a lot with Equatorial Guinea, including gas supply and provision of technical services.  (NAN)