NNPC TO HIT 1.8 MILLION BPD PRODUCTION SOON
…As Company Finally Transits to NNPC Limited
The Nigerian National Petroleum Company (NNPC) Limited has announced that it is three months away from attaining daily crude oil production of 1.8 million barrels, a significant leap from the barely 1 million per day combined crude and condensate production as at July 2022.
Group Chief Executive Officer of the company, Mallam Mele Kyari disclosed this during the final cutover ceremony of the company which marked the consummation of the 18-month period for transfer of assets and liabilities to the company, as stipulated by the Petroleum Industry Act (PIA); and its final transition from 45 years’ operation as a government owned entity.
“Today, we are operating a company under the Company and Allied Matters Act (CAMA) principles. So you cannot lose money consecutively for more than three years. The implication is you’ll be liquidated,” he said.
He said what the cutover ceremony meant was that "all assets & liabilities of the Corporation (NNPC) have been transferred to the new NNPC Limited. The good thing is that the liabilities are far less than the assets. So it's a very comfortable situation."
The GCEO, who expressed optimism that this new phase will be a monumental improvement on the preceding years, stressed that as a company, the new NNPC Limited will work, deliver value to its shareholders and partners. “Today, we keep to our commitments with our partners. We keep our promises because that’s the only way the business can survive, ” he affirmed.
Narrating how the company’s profit journey began in 2020 with a historically unprecedented gain of N287 billion, and N674 billion in 2021, after 43 years of consecutive loss; Kyari assured of an even better and brighter 2022.
According to him, this will, in addition to world class practices, bring back partners, and restore investor confidence.
He highlighted the company’s strategic direction to include asset and production capitalization, prudent financial decisions, fairness to partners, zero tolerance for incompetence and fraud, as well as adherence to systems and processes.
“As the corporation sunsets today by the provisions of the PIA, we will have a new dawn. It is a company that has brought value to all of us. It has shown that it can survive, it is sustainable, and also going to be the partner of choice as we confront the realities of tomorrow: energy transition and other conversations; the need to develop our country. But ultimately for all of us here, it’s your partner of choice, and we welcome you to NNPC Limited. Thank you very much,” he concluded.
Earlier in his remarks, the Minister of State for Petroleum Resources, Chief Timipre Sylva, described the event as a historical milestone, stressing that he will forever be remembered as the last minister to chair the NNPC Board.
Sylva also urged that all necessary modalities be put in place to ensure the company becomes competitive for the future, pointing out that the purpose of the transition was not to stifle the private sector in the Nigerian Oil and Gas industry, but to encourage growth, attract investment and maximize the dividends to the investors and the teeming population of Nigeria.
“The playing ground must be level, fair and competitive to enable the achievement of these goals. It is now imperative for NNPC Limited to sharpen its business tools to remain afloat and compete favourably with the best in the industry worldwide,” Sylva stated.
He charged the company to maximize the global transition towards renewable energy as an opportunity to establish “a vibrant energy company” for the country, with significant interests in renewable and non-renewable energy sources.
Also in her remarks, the Board Chairman of NNPC Limited, Sen. Margery Chuba Okadigbo, while congratulating the company for the feat, commended the board, management and staff for the hardwork and commitment towards making the transition a reality.
Represented by Dr. Lami Onayi Ahmed, a member of the Board, Okadigbo urged all stakeholders to continuously live out the company’s core values of integrity, excellence and sustainability.
A number of stakeholders from the nation’s oil and gas industry also offered their goodwill messages at the occasion, with many of them wishing the best for the new company.
These include: the Nigeria Midstream and Downstream Petroleum Regulatory Agency (NMDPRA); the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development & Monitoring Board (NCDMB). Others were the Oil Producers Trade Section (OPTS), Independent Petroleum Marketers Association of Nigeria (IPMAN), Major Oil Marketers Association of Nigeria, Depot and Petroleum Marketers Association of Nigeria (DAPMAN), National Association of Road Transport Owners (NARTO), and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) among others.
A major highlight of the event was the substitution of the old NNPC flag with the new NNPC Limited flag, a moment that marked a new dawn for the company and symbolized a transition from the Corporation to the Company.
Garba Deen Muhammad
Chief Corporate Communications Officer
NNPC Limited
