The weekly activities of the Nigerian National Petroleum Company (NNPC) started with staff been urged to brace for higher levels of efficiency in 2022 as it now operates under the Companies and Allied Matters Act (CAMA).
Addressing the workforce at the maiden corporate wide town-hall meeting for the year 2022, the GMD/CEO of the NNPC, Malam Mele Kyari, outlined the changes ahead.
Kyari assured that no member of the NNPC workforce would lose his or her job as a result of the impending reforms to be introduced under the PIA transition but that they must be productive, accountable and transparent in their work.
He called for optimum dedication by staff in the discharge of their duties in order to enhance profitability, stressing that under the PIA, the company would operate as a contractor to the nation at large.
The NNPC CEO also said that Nigerians expected nothing but greater levels of profit.
Kyari explained that all assets transfer and structural changes associated with the transition process would be completed before the end of the year.
Speaking on behalf of staff of the NNPC, the Group Executive Director, Corporate Services, Mrs Aisha Katagum, pledged the commitment of the entire workforce to achieving the set tasks as spelt out by the GMD/CEO.
Meanwhile, the NNPC Limited executed various Memoranda of Understanding (MoUs) and agreements with some joint venture partners, strategic allies and stakeholders in 2021.
These agreements were geared towards strengthening the corporation’s profit by maximising capacities across its operational value chain.
They were also designed in line with the national objectives of the oil and gas industry on the repositioning of gas for rapid domestic, regional and export market expansion.
The maiden execution of these agreements commenced with the signing of the Final Investment Decision (FID) by NNPC and partners, DSV Engineering and the Nigerian Content Development and Monitoring Board (NCDMB), for the 3.6billion dollars Brass Methanol Plant in Odioma, Brass Island, Bayelsa.
The project, upon completion, would be the largest methanol plant in Africa and the first in Nigeria.
The project anchored by the Brass Fertiliser and Petrochemical Company Limited (BFPCL), is an incorporated entity owned by the NNPC, DSV Engineering, and the NCDMB
Speaking at the event, the GMD/CEO of NNPC Limited, Malam Mele Kyari said he was pleased with the current efforts by the Federal Government to provide value for Nigeria’s gas resources.
He describing the FID as one of the most significant investment strides in the gas sector in recent times, noting that the project was in tandem with the earlier declaration of 2020 as the year of gas and 2021-2030 as the decade of gas by the Minister of State for Petroleum Resources.
The construction phase of the project would create about 30,000 temporary jobs in addition to the 5,000 permanent jobs which would come in place when the plant becomes operational.
Another significant gas development agreement was the signing of a 260 million dollars deal with the Assa-North-Ohaji South (ANOH) Gas Processing Company Limited (AGPC) for the financing of the ANOH Gas Project in February.
The ANOH Gas Processing Company Limited (AGPC) is an incorporated Joint Venture owned 50:50 by the Nigerian Gas Company (NGC), a wholly owned subsidiary of the NNPC, and Seplat Petroleum Development Company.
The ANOH Gas Project which has been described as a game changer by stakeholders is another milestone on the journey to deliver more gas to the domestic market for the promotion of power generation and rapid industrialisation in the country.
Gas flaring coming to end in Nigeria
Gas flaring coming to end in Nigeria
It would deliver 300 million standard cubic feet of gas per day (mscfd) and 1,200megawatts of power when completed.
The gas development and commercialisation programme of the NNPC received another boost with the execution of the Oil Mining Lease (OML) 143 Gas Development Agreement (GDA) by the NNPC and its partner, Sterling Oil Exploration and Production Company (SEEPCO).
The project would boost the nation’s gas production by 1.2trillion cubic feet (tcf).
The GMD/CEO NNPC Ltd, Kyari, said the gas from the project would be processed at the Ashtavinayak Hydrocarbon Limited (AHL) 125million standard cubic feet (mmscf) of gas per day gas plant located in Kwale, Delta State.
Group Managing Director of SEEPCO, Mr Tony Chukwueke, said the OML 143 GDA was unique in two ways
“First, it is the first Agreement in Nigeria that fully separates gas development from oil production, an arrangement that will enable holistic development of the gas potential in the block.
“And it is the first of its kind to expressly include terms that encourages the contractor to be effective in cost management thereby passing on significant revenue to the Federal Government, NNPC and other stakeholders.”