The Nigerian National Petroleum Corporation (NNPC) is set to work out modalities that would enable it exit Joint Venture cash call arrears by ensuring that outstanding and future payments are liquidated from oil and gas royalties and taxes under a first line charge model.
The Group Managing Director of the NNPC, Dr. Maikanti Kacalla Baru made this disclosure during a visit to the National Petroleum Investment Management Services (NAPIMS), a Corporate Service Unit of the Corporation in charge of Federal Government portfolios in the upstream sector.
Dr. Baru noted that the current JV payment structure requires urgent review adding that the new model being proposed by the NNPC would enable the Corporation to plough back the profit and grow the oil and gas business in the upstream for the benefit of all stakeholders.
He urged management and staff of NAPIMS to carry out their assignments with professional integrity by benchmarking their operations with global best practices.
The GMD disclosed that the 12 key business focus areas of the NNPC under his watch are targeted at rejuvenating the entire business operations in order to enable the Corporation deliver on its core mandate to all its stakeholders.
He described NAPIMS as a strategic CSU and sued for maximum support from members of staff to enable the Corporation meet its set goals in the short, medium and long term.
Earlier, the Group General Manager, NAPIMS, Mr. Dafe Sajebor who was represented by the General Manager Production Sharing Contract, Mr. James Jock assured the GMD that NAPIMS would ensure efficient management of all Joint Venture and Production Sharing Contract arrangements even in the face of dwindling crude oil prices and incessant pipeline vandalism.
Baru has also promised to reposition the National Engineering and Technical Company (NETCO) into an African hub of excellent engineering, procurement and Construction Company of choice.
He made this commitment during the maiden Town Hall meeting with management and staff of NETCO at its headquarters in Lagos.
He said NETCO as a Strategic Business Unit has over the years delivered profit to NNPC assuring that the outfit would continue to play the pivotal role of providing in-house professional engineering services to all the Autonomous Business Units of the Corporation and other clients.
On his part, the Managing Director of NETCO, Engr. Siky Aliyu noted that NETCO is challenged by low patronage by some ABUs of NNPC and International Oil Companies (IOCs).
According to him the company is determined to harness all opportunities in the oil and gas project portfolios in order to keep producing a positive bottom-line.