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Energy

NNPC reveals survival strategies to cope with oil sector downturn and new normal

Kyari also disclosed that NNPC is also investing in domestic gas utilization projects.

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NNPC, Domestic Crude Allocation, Why NNPC’s Duke Oil is quitting London operations for Dubai , NNPC divests stake in four oil wells to NPDC , How NNPC discovered oil, gas deposits in the North , Nigeria to leverage on condensate refineries to be petrol net exporter, How NNPC saved $3 billion from arbitration , NNPC, IPPG donate medical supplies to South West state governments, NNPC discloses bases for employment and managerial progression in the oil firm, NNPC diversifies into housing, power; plans to beat crude production cost to $10 per barrel

The State oil giant, Nigerian National Petroleum Corporation (NNPC), has disclosed that it is expanding its non-oil and gas businesses, deploying technology and automating their processes and operations to reposition the industry for the new normal and ensure sustainability.

They are also working on reducing their cost of crude oil production in order to adapt to the low oil prices triggered by the coronavirus pandemic.

The disclosure was made by the Group Managing Director of NNPC, Mele Kyari, during his address at the Energy Industry Transformation Virtual Summit with the theme, Changing Global Energy Landscape Strategies for Industry Sustainability, on Tuesday, August 25, 2020.

READ: Petroleum Industry Bill set to go to President Buhari

Some of these new strategies are necessary for the oil sector which has been badly hit by the coronavirus pandemic.

He said that the onslaught of COVID-19 and the oil price war experienced early this year led to a historical massive demand destruction and supply glut on a global scale, adding that no player in the oil and gas industry was spared of the downturn.

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The NNPC boss pointed out that however, with every downturn comes an opportunity to evolve and the industry is taking advantage of this. He said the crisis has accelerated their ability to innovate and leverage on technology to get the businesses to operate optimally and reduce impact.

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READ: Startimes, DStv, Others adjust prices as Nigerian businesses battle tough economic conditions

Kyari, in his statement, said, ‘’To reposition the industry for the new normal and ensure sustainability, we are expanding our non-oil and gas businesses, deploying technology, automating our processes and reducing our cost of production.’’

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He stated, ‘’In order to navigate through this global reality, we at the National Oil Company have deployed technology to promote virtual ways of working. We have also improved our efficiency and optimized our operating expenditures.’

READ: COVID-19: FG inducts committee for creative industry palliatives

Kyari also disclosed that NNPC is also investing in domestic gas utilization projects like the Ajaokuta-Kaduna-Kano pipeline gas project (AKK, OB3, ELPS), supporting research and innovation as well as fast-tracking energy policy required to expand the horizon of commercial opportunities.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Business News

Power Minister explains why power outages have risen

The Minister cited a breakdown of some National Integrated Power Plants supplying electricity to the national grid as being behind the recent power outages.

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The Minister of Power, Engr. Sale Mamman explained why power outages have increased in Nigeria citing a breakdown of some National Integrated Power Plants supplying electricity to the national grid.

The Minister disclosed this in a statement on Thursday morning, assuring Nigerians that the FG is working assiduously to restore the National grid to its previous historical levels and exceed that.

READ: Despite $1.6bn investments, Nigeria’s national grid still worrisome

What the Minister is saying

  • I sincerely regret the recent power outages across the Nation and the difficulties it has brought with it.
  • The problem is caused by the breakdown of some National Integrated Power Plants supplying electricity to the national grid. The plants are namely, Sapele, Afam, Olonrunsogo, Omotosho, Ibom, Egbin, Alaoji and Ihovbor. The Jebba Power Plant was shut down for annual maintenance.

The Minister added that seven power plants are currently experiencing gas constraints including Geregu, Sepele, Omotosho, Gbarain, Omuku, Paras and Alaoji while Shiroro hydroelectric power plant has water management issues.

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Business News

BUA Group, French company announce progress in 200,000 bpd refinery project

This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.

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The BUA Group and Axens, a French-based petroleum technology company, have both signed a progress acknowledgement statement for the proposed BUA multi-billion-dollar integrated 200,000 barrels per day refinery in Akwa Ibom State.

This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.

BUA, while making the disclosure in a statement on Wednesday, April 14, 2021, said that the French President, Emmanuel Macron, commended its Chairman, Abdul Samad Rabiu, for his commitment to developing lasting relationships between French and Nigerian businesses.

READ: What the $1.5 billion Port Harcourt refinery deal means to us – Maire Tecnimont

The statement said that this came as the French Minister for Foreign Trade and Economic Attractiveness, Franck Riester, paid a visit to the BUA Group Headquarters in Lagos where he handed over a personal invitation from Macron to Rabiu to attend the Choose France Summit in June in Paris representing business leaders from Nigeria and Africa.

The French minister also witnessed the signing of a progress acknowledgement statement between BUA Group and Axens of France for the proposed refinery project, according to the statement.

The statement also said that during the visit, it was announced that the BUA chairman had been appointed Chairman of the France Nigeria Investment Club.

READ: FG reacts to reports of revoking 32 refinery licenses

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While thanking the minister and Macron for their unwavering support in bringing BUA and French businesses together, Rabiu said BUA had so far initiated partnerships and had developed personal relationships with a few French businesses, including Axens.

He expressed confidence in the quality of expertise and technical know-how of the French companies BUA had partnered with.

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Rabiu pointed out that the BUA refinery would reduce the huge cost of transporting Nigerian crude offshore, refining it and bringing it back into the country when fully operational.

READ: Abdulsamad Rabiu’s stake in BUA Cement has increased by N1.2 trillion in value since listing in 2020

He said that the choice of Akwa Ibom for the refinery was due to the huge availability of raw materials and its proximity to export petroleum products to regional countries.

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The President of Axens, Jean Sentenac, in his statement, said he was pleased that the project was advancing on schedule and expressed delight for the very good cooperation between all the involved parties, reiterating the commitment of Axens in delivering the BUA Refinery Project on time and with the highest standards.

READ: FG to open LPG distribution channels in all local governments

Bottom line

The completion and take-off of the refinery owned by the BUA Group would come as a huge boost for the Federal Government’s effort to stop the importation of refined petroleum products, ensuring that the country becomes a net exporter of these products.

This will also help to conserve the scarce foreign exchange as the completion and take-off of the Dangote refinery and other similar refinery projects will help ensure self-sufficiency in the country.

The BUA Group, just a few days ago, was listed as one of the companies with an active refinery license from the Department of Petroleum Resources (DPR).

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