NNPC Moves to Become a Profit Centre

The Nigerian National Petroleum Corporation (NNPC) Transformation initiative aimed at repositioning the Corporation to be commercially focused and profit-oriented in preparation for the post-PIB era has begun to yield positive results with more of the strategic business units (SBUs) of the Corporation transiting from cost centers to profit centers.
This was disclosed by the Management of NNPC at a town hall meeting which held over the weekend at the Port Harcourt Refining Company (PHRC), Port Harcourt.
The Group Managing Director of NNPC, Engr. Andrew Yakubu, who addressed the town hall meeting after a facility tour of the Corporation’s Research & Development Center, the Integrated Data Services Limited (IDSL), and the Port Harcourt Refinery, stated that more subsidiaries of the Corporation are beginning to make profit in their day to day operations as a result of some initiatives his management introduced upon assumption of office as GMD two years ago.
Engr. Yakubu disclosed that as opposed to the past when the Nigerian Petroleum Development Company (NPDC), the Nigerian Gas Company (NGC), and NNP Retail Ltd were the only SBUs running at a profit, more subsidiaries, including the three refineries, have joined the train of profit centers as a result of the introduction of a scheme to supply crude oil to them by marine vessels.
He explained that the scheme was developed as a result of the constant attacks on the crude supply pipelines which created crude supply challenges for the refineries over several years.
On the long term solution to the problem of pipeline vandalism which was responsible for the crude supply challenges of the refineries, the GMD explained that plans were under way to deploy the horizontal directional drilling technology in all the Corporation’s pipelines to reduce the incessant attacks on the pipelines which have become a huge drag on the operations of the Corporation as well as a drain on the national economy.
He stated that for NNPC to live up to its full potential and fulfill its glorious destiny it must adopt a radical change in its operational attitude, adding that his management was willing to support any SBU that comes up with innovative ideas on how to operate more efficiently and grow profit.
On NPDC, the GMD noted that it has been transformed into the largest supplier of gas in the domestic market, adding that apart from the several network of gas infrastructure that are being built to make Nigeria the hub of gas in Africa, the Corporation has also succeeded in aggressively expanding the distribution of liquefied petroleum gas market (LPG) as part of measures to promote the use of cleaner fuel for domestic use.
Engr. Yakubu also stated that the perennial power challenge faced by PHRC would soon be a thing of the past as a dedicated independent power plant was on the verge completion to provide uninterrupted power supply to the refinery, stressing that the plant which will be ready for commissioning in a few weeks’ time would go a long way to boost the efficiency of the refinery.
Providing an update on the scheduled turn around maintenance of the PHRC, the GMD explained that though the plan to bring in the original builders of the refinery, JGC of Japan, for the TAM has not sailed through, NNPC was still in negotiation with the companies nominated by JGC to see what value they can add to the project, adding that in the meantime, in order to keep the plant running, Management has gone ahead to procure some of the components that needed to be changed and has started fixing some of the critical units that need urgent intervention.
While describing the Research & Development Division as the brain box of the Corporation and one of the Corporate Service Units (CSUs) that has the potential of becoming a money spinner, Engr. Yakubu challenged the management of the Division to develop its capacity with state-of-the-art facilities and adequate training and retraining of staff in order to contribute maximally to the growth of the Corporation.
The NNPC helmsman applauded IDSL for the successes it has achieved in providing excellent exploratory services in seismic data acquisition and interpretation to international oil companies as well as indigenous oil companies while urging them to review their project management system to enable it compete favourably with other exploratory services companies.
Engr. Yakubu commended the in-house unions and members of staff for their support to his management and assured of the readiness of his management team to reciprocate the gesture by providing a conducive working environment for the workers that would enable them to efficiently carry out their work.
Delivering a welcome address, the Managing Director of the PHRC, Engr. Bafred Enjugu, commended the GMD for giving approval for crude supply to the refinery through marine vessels, adding that the initiative has improved the company’s profit margin considerably.
He explained that the PHRC has commenced a piecemeal intervention in the plant through the replacement of components procured for TAM using in-house resources and local contractors.
Engr. Enjugu applauded the GMD for his management style of leading by example which he said has inspired the workforce to meet its tasks and targets.
The highpoint of the meeting was the recognition of some members of staff who were given the GMD’s handshake for distinguishing themselves in their various assignments through innovative and excellent service.