He also disclosed that gas supply to the power sector stands at 720 million Standard Cubic fit per day, which is 47 per cent of the country’s domestic gas delivery market.
Mikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), says it has paid $1. billion from the renegotiated debt of $5.1 billion it owes its partners- International Oil Companies (IOC’s). In a statement released by the state owned oil company, Baru was quoted as saying that his administration has recorded lots of success.
He also disclosed that gas supply to the power sector stands at 720 million Standard Cubic fit per day, which is 47 per cent of the country’s domestic gas delivery market.
“Aside securing approval and signing off the novel financing structure with Schlumberger for the NNPC/First E&P JV which is expected to deliver a peak production of 50,000 bpd and 120mmscfd by 2019, the corporation had maintained commitment to repayment of cash calls arrears where about $1 billion of $5 billion indebtedness has been settled.”. Baru told NNPC staff in the release that the company is shifting paradigm from being an integrated oil and gas company to becoming an energy firm:
“Going forward, our priority will be to remain globally competitive. In pursuing this, we will ensure the gradual transition of NNPC from an integrated oil and gas company to an energy company.
“We will also review our business models to reflect current operations reality with improved profitability, transparency and accountability as the cornerstone.”
He promised that the NNPC would pursue improved relationships with local communities, states; local governments and security formations in the country.
The NNPC boss said the refineries have remained operational and strategic in their contribution to petroleum products availability to support domestic supply across Nigeria.
He also stated that he had institutionalised transparency in the bid processes for contracts for lifting of crude oil from the country.
The NNPC boss noted that the refineries have remained operational and strategic in their contribution to petroleum products availability to support domestic supply across Nigeria. Furthermore, Baru stated that he had institutionalised transparency in the bid processes for contracts for lifting of crude oil from the country.
With gas supply constituting most of Nigeria’s electricity supply, the lack of stability of gas from NNPC and its operators, is said to cause the country about 1,500 megawatts of lost power. When gas outage reaches crisis point, the whole national grid becomes unstable. It was reported to be fragile during the Eid holidays. That fragility caused the country over 1,000 mw of power, leading to the temporal shutdown of six power plants and another operated by Shell.
Contract staff in the country’s refineries, have also lamented enduring poor treatment from the NNPC management. They said the company does not give them any allowances or compensation for those who work in highly toxic environments. They had made their complaint known in an open letter sent to Muhammadu Buhari on the 21st of May 2018.