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LequteMan
Guest
Nigeria - New Group Managing Director of NNPC, Emmanuel Ibe Kachikwu has said he is pursuing what he called a three-pronged process in the restructuring of the corporation.
“It is three-pronged process that I am pursuing. There is a people aspect, which we are dealing with now. There is a process aspect. And after placing the people at the right places, you are going to get a forensic audit done, that will be able to say to you, ‘this is the state of the company.’
“We are going to put processes and control in place. We are going to do retraining and repositioning and then, we are going to re-engage our majors and minors, all those who are active in the sector, for us to work as a team to take Nigeria forward. It is going to be the process stage.
“The final stage will be the business stage, which will be looking at all the existing contracts. Are they good? Are they okay? Do they need to be re-kitted and redone?
“We will look at the PSCs. What should we do, going forward? We will look at the challenges posed by reduced balance sheet as a result of $40 or $50 per barrel oil. What do we do to energise recovery and income growth so that government will have money to work with?
“It is a very intensive work; very calibrated work. A lot of us are not spending time sleeping but over the next five to six months, you will begin to see a new NNPC. A new process of oil administration in the country and obviously, giving fillip to Mr. President’s dream of taking the oil industry back to where it should be.”
When asked about his position on the President’s directive on the Treasury Single Account, Kachikwu said the directive was being considered.
He said he was looking at how to merge accountability with the need to ensure the survival of the industry.
“The reality is that to run an oil company, you’ve got to have funds. If you don’t, you will close down the corporation and the production system will close down. So, we are looking at how to merge the need for accountability and openness with the need to make sure that the industry itself survives. We cannot throw away the baby with the bathwater,” he said.
PUNCH
“It is three-pronged process that I am pursuing. There is a people aspect, which we are dealing with now. There is a process aspect. And after placing the people at the right places, you are going to get a forensic audit done, that will be able to say to you, ‘this is the state of the company.’
“We are going to put processes and control in place. We are going to do retraining and repositioning and then, we are going to re-engage our majors and minors, all those who are active in the sector, for us to work as a team to take Nigeria forward. It is going to be the process stage.
“The final stage will be the business stage, which will be looking at all the existing contracts. Are they good? Are they okay? Do they need to be re-kitted and redone?
“We will look at the PSCs. What should we do, going forward? We will look at the challenges posed by reduced balance sheet as a result of $40 or $50 per barrel oil. What do we do to energise recovery and income growth so that government will have money to work with?
“It is a very intensive work; very calibrated work. A lot of us are not spending time sleeping but over the next five to six months, you will begin to see a new NNPC. A new process of oil administration in the country and obviously, giving fillip to Mr. President’s dream of taking the oil industry back to where it should be.”
When asked about his position on the President’s directive on the Treasury Single Account, Kachikwu said the directive was being considered.
He said he was looking at how to merge accountability with the need to ensure the survival of the industry.
“The reality is that to run an oil company, you’ve got to have funds. If you don’t, you will close down the corporation and the production system will close down. So, we are looking at how to merge the need for accountability and openness with the need to make sure that the industry itself survives. We cannot throw away the baby with the bathwater,” he said.
PUNCH
