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A leading Niger Delta group, Community Development Committees (CDC) of Niger Delta Oil and Gas Producing Areas, has commended President Bola Tinubu for changing the leadership of Nigeria National Petroleum Corporation Limited (NNPCL).
The body tasked Engr. Bayo Ojulari’s team to fashion out the best ways to make the corporation more viable and functional in consonance with the expectations of Nigerians.
In a statement signed and issued by the Chairman, Board of Trustee, Community Development Committee of Niger Delta Oil and Gas Producing Areas, Comrade Joseph Ambakederimo weekend, the group said the change of the management of the organisation was long over-due since the beginning of this administration.
It blamed the sacked board of not enforcing fair pricing policy after the federal government’s decision to remove fuel subsidy.
It noted that for the company to thrive and bring it at par with other national oil companies around the world, the corporation, among other issues, must see that the cost of production of barrel of crude oil is brought to an acceptable level that will compete favorably with other producing countries just as it said, there is need for an increased production of Nigeria’s crude barrels per day.
The body advised that the four refineries should be made to function optimally to make the products available for Nigerians.”
It expressed the need for the review of surveillance contract saying, apart from the fact that, many Nigerians are worried over four hundred billions Naira paid yearly on it, it is embarked upon by non-state actors who have little or no technological know-how and capacity to handle such a complex work in a volatile region as many pipeline breaches still occur and becoming rampant across the region.
The statement read in part: “The Community Development Committees of Niger Delta Oil and Gas Producing Areas (CDC) applauds President Bola Tinubu for the change of leadership at Nigeria National Petroleum Corporation Limited (NNPCL)”
“The change of management at the NNPCL was overdue: the CDC had called for this change since the beginning of this administration. We noted instances where Nigerians were losing hope, on a daily basis, over the corporation’s inability to effect a fair pricing policy after the removal of petrol subsidy by resorting to prayers, to solve to solve our challenges”.
“While commending President Bola Tinubu for rejiging the corporation’s management, we hope that the new team will bring their corporate oil industry experience to bear on their assignment.
“Going forward, however is to set an actionable agenda for the new team for purposes of clarity on the way forward for the company to thrive and bring it to par with other national oil companies around the world”, it added.
The group stated further: “Firstly amongst others, is the issue of how quickly can the cost of production of a barrel of crude oil be brought to an acceptable level that will compete favourably with other oil producing countries.
“We have as low as production cost of between ten to twelve United States’ dollars per barrel of crude oil in some African countries compared to our high cost of production of about forty United States dollars in Nigeria, this certainly cannot be attractive to investors as it places Nigeria at a disadvantage position.
“Therefore, the cost of production must be brought down to attract what would be referred to as “New Money” (investment) into the sector”, it stated.
CDC said further: “The other pressing issue is increased production of our barrels. For us we will set an ambitious target of somewhere around five (5) million barrels per day of crude oil in the next ten years. Anything less than five Million barrels per day of crude oil production in Nigeria today does not make economic sense because it will not wedge the ever-increasing expenditure profile of the government.
“Large volume production will bring in more Foreign Exchange, more FX inflow in to the coffers of the Central Bank of Nigeria will bring down the exchange rate of the Dollar and more resources for the development of critical infrastructure at all levels of government.
“Going forward on this, the Executive Order signed by President Bola Tinubu should be invoked to the fullest without reservations, this will stimulate and quicken the completion process of upcoming Deep water tenders that will in turn increases the barrels”.
“The state of the refineries is another big issue that has brought shame to us as a country of immense wealth by crude oil volumes vis-a-vis our trajectory to becoming a net importer of refined Petroleum products”.
“This team is enjoined to take a critical look at what are the issues with the refineries that can’t function optimally. We want to to see the NNPCL four major refineries working optimally including others been encouraged to function optimally by providing the needed feedstock to fire them for the good of the country.
“Also, another area crying for attention that needed to be reviewed is the pipeline surveillance contract. The question that is agitating the minds of many Nigerians is the justification of the continued payment of humongous amount of money up to the tune of our hundred billion yearly to non- state actors whom have little or no technological know-how and capacity to undertake such a complex work in a volatile region when many pipeline breaches still occur and are becoming rampant across the region.
“With benefit of hindsight the Nigeria Liquified Natural Gas Company (NLNG) are having issues to contend with regarding supply of gas to its customers. The company keeps having shortfall of gas due largely to pipeline breaches as alluded by the company’s Managing Director Dr. Philip Mshelbila.
“The country is losing an appreciable amount of revenue in that runs into millions of dollars that should have accrued to the Federal government by ways of dividends.
“We have to look the way of technology in the area of Artificial Intelligence applications, this application is everywhere and ready to be deployed.
“The Bayo Ojulari’s team is therefore urged to stop the pipeline surveillance contracts in whole or review the pipeline surveillance contract either by ways of expanding the scope to bring in all of the principal actors whom have felt left out of the patronage by the NNPCL.
“Many of the principal actors are the operators of the unlicensed refineries and are partly responsible for these pipeline breaches to steal crude oil. The Bayo Ojulari’s team is advised to face the idea of security to NNPCL critical assets as one of their priorities and accommodate more or expanded stakeholders in the process.
“In finding a fool-proof strategy to mitigate and forestall crude oil theft the Community Development Committees of Niger Delta Oil and Gas Producing Areas (CDC) is advocating to the government to provide alternative incentives to pipeline vandals and operators of the unlicensed refineries to embrace dialogue that will lead to measures that will enhance their own economic well-being.
“The CDC is already in talks with many of the unlicensed refineries operators and the discussions that we have had are promising, therefore as we continue this engagement with the unlicensed refineries operators, we use this medium to invite the Bayo Ojulari’s team to be part of the discussions in order to find a lasting solution to this very embarrassing situation.
“It is our hope that the new management will also use a fine-tooth comb to comb through the forward sales of millions of barrels of crude oil to ascertain claims made by the previous management to at least bring it to speed to Nigerians for purposes of clarity and expectations on the part of Nigerians to be acquainted with what the numbers of our debt profile are as it relates to our oil production”, it added.
