Mele Kyari
NNPC’s NETCO repositioning for greater competition
Sopuruchi Onwuka
The industry services arm of the Nigerian National Petroleum Company (NNPC) Limited, the NNPC Engineering and Technical Company (NETCO) has declared readiness to launch into the market with enhanced services and greater competitiveness.
NETCO has the mandate of delivering qualitative, integrated and cost-effective Engineering, Procurement & Construction Management (EPCM) services for Nigeria’s Oil & Gas Industry and beyond.
NETCO which had dominated industry services prior to the advent of private indigenous service companies receded to the background in the face of aggressive competition from tenacious private players in the market.
Chairman of the company’s Board of Directors and Executive Vice President, Downstream, NNPC Limited, Mr. Adedapo Segun, declared at the Company’s 34th Annual General Meeting for the 2023 operating year held in Lagos that the company is strongly rebounding from poor financial position with a 137 per cent surge in overall performance, 101 percent increase in revenue and 145 percent surge in gross profit.
A statement on NETCO’s operating results issued by the Chief Corporate Communications Officer of NNPC Limited, Mr Olufemi Soneye, did not provide figures on the company’s financial position, making it difficult for analysts to generate concrete appraisal on the company.
Managing Director of NETCO, Dr. Tonye Alagba, said the company is focused on growing its business portfolio in 2024 and beyond.
“To achieve this, the company is working strategically to expand its service offerings within the oil and gas industry in 2024, invest in the development of human and other resources, reduce direct and overhead resources and minimize risks”, Alagba stated.
The NETCO helmsman further stated that the company aims to increase its market share by at least five per cent through participation in mainstream EPC projects, stressing that the company will bid for a minimum of 32 Tenders with a target of securing at least 15 contracts.
He listed other targets to include: a 21-day invoicing cycle; a minimum of 85 per cent debt collection efficiency; a minimum customer satisfaction rate of 71 per cent; acquisition of critical assets such as fabrication yards and offshore logistics support base; and development of exclusive collaborations with key technical partners like KBR and Petrofac, amongst others.
