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NNNPC Subsidiaries to Embark on Cost-Cutting Measures

……by James Ikenna……..

…..Kyari Charges NAPIMS on Cost optimization strategies…….

As the Nigeria National Petroleum Corporation (NNPC) sets to transit into a limited liability company there are now moves to ensure that it’s subsidiaries embark on cost-cutting measures.
The Group Managing Director of the NNPC Mallam Mele Kyari, has called on the National Petroleum Investment Management Services (NAPIMS) to embark on further cost optimisation strategies in line with the corporation’s objective of reducing inefficiency.

Speaking at the 2021 NAPIMS Annual Value Assurance Review Session (AVAR) hosted by the NNPC upstream unit, Kyari urged the NAPIMS team to leverage on the new Petroleum Industry Act (PIA) to ensure that the use and monetisation of gas resources remain its priority.

The event is an annual proactive platform for carrying out 360 degrees review of the NAPIMS portfolio to identify strategies, drive new approaches and initiatives considering economic realities and industry trends.

Aside Kyari, the three-day event slated for the 13th-15th September, in Lagos, had in attendance a member of the NNPC Board of Directors, Dr. Tajuddeeen Umar, Group Executive Director Upstream, Adokiye Tombomieye, among others.

The NNPC boss stated that it was heart-warming that NAPIMS had taken the lead in conducting the annual value assurance review, which he said was in line with the best practice of other global ‘comparator organisations’.

He stated that NAPIMS must be ahead of the curve to ensure a successful transition of NNPC to a Corporate and Allied Matters Act (CAMA) company in the near future.

The GMD charged NAPIMS to remain focused, devise sustainable cost efficiency measures and leverage on attractive provisions in the new Act to drive gas development and monetisation.

In his welcome address, the Group General Manager, NAPIMS, Mr. Bala Wunti, emphasised that the oil and gas industry represents over 75 per cent of national revenue of which NAPIMS manages a large part, implying that whatever action the organisation takes has far-reaching consequences on not just the corporation, but the entire nation.

Wunti stated that this year’s AVAR was timely and provides NAPIMS a great platform and opportunity to adequately strategise ahead of the impending changes facing the industry locally and globally.

In his remarks, Umar enumerated the expectations of NAPIMS post-PIA, listing them as technical auditing, superintendence on project delivery as well as serving as intermediary between NNPC, International Oil Companies (IOCs), federal government and other stakeholders.

He listed others as capacity creation and domiciliation of knowledge, skills and competence, organisational excellence as well as financial value maximisation.

A technical session to proffer key insight and understanding of the PIA was facilitated by the Managing Partner, Olaniwun Ajayi Legal Practitioners, Dr. Tominiyi Owolabi, and an Industry veteran and former Adviser to Minister of State Petroleum Resources, Dr. Timothy Okon.

However, the programme continues today with a focus on business overview and 2022 outlook, energy transition outlook and response strategy, among others.

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