The Managing Director of the Nigerian Petroleum Development Company (NPDC), Abubakar Mai-Bornu, has described the Project Sanctioning and Approval Procedure (PSAP) as one of the critical initiative that will ensure the success of project financing and execution in NPDC.
The MD made this disclosure while inaugurating NPDC’s PSAP Line Implementation Team (LIT) members in a ceremony held at the company’s office complex in Benin, recently.
“PSAP is very critical to our operations. Coming at a time when the Petroleum Industry Bill (PIB) is around the corner, the issue of how we finance our projects is on the front burner and you know there is nobody that will lend money to you to finance your project except if they have confidence that you will be able to deploy such resources reasonably well,” he stated.
Mai-Bornu explained that the fact that NPDC has project governance system in place such as the PSAP, it will go a long way in giving potential lenders the confidence to finance the company’s projects.
“That will also give us the confidence and assurance as a company that we can deploy resources reasonably, we can start and finish projects on time and we will not only pay back the loan but also start getting return on investment for the company,” Mai-Bornu added.
He expressed confidence that PSAP implementation in NPDC will contribute significantly to the performance of the company and assist in expanding its market shares and potentials.
“PSAP is very important because it will enable us carry out our projects efficiently and effectively thereby deriving the benefit to expand our infrastructures with a view to capture the market and attract additional revenue,” he said.
According to the NPDC boss, the success of NPDC as the “Cash Cow” of NNPC is very critical to the overall success of the Corporation. If the NPDC gets PSAP right, other SBUs will also get it right, he maintained.
He stated that even though the era of big projects might be over for now as a result of dwindling oil prices, we still need to apply the PSAP to ensure that the little money we have is judiciously spent.
He emphasized the importance of PSAP, adding that it helps us approach the way we do things generally in a very structured way not only on official engagements but also in our private lives.
He stressed the importance of business collaboration for improved performance and maximization of gains in NPDC.
“In terms of moving forward in NPDC with the new development of Integrated Joint Ventures (IJV) formation, you can see that the model is the same with that of NLNG and as we know today, the NLNG is a world class company,” the MD has said.
Against this background, the MD described the timing for the inauguration of PSAP LIT in NPDC as apt while expressing confidence that by the time the IJVs arrangement is formalized in NPDC, the PSAP model would have been on ground running.
The MD, who pledged his full support to the inaugurated LIT members, also charged them to put in their best and ensure the successful PSAP implementation in the company.
He suggested that for seamless PSAP implementation, there should be steering committees similar to that of the corporate headquarters at the level of Strategic Business Units (SBUs) and Corporate Service Units (CSUs).