Contracting cycle in oil sector now nine months – NNPC

The Nigerian National Petroleum Corporation (NNPC) has successfully fast-tracked contracting cycle for upstream operations from 24 months to 9 months with a strong commitment to further reduce the process to less than six months.

NNPC’s Group Managing Director, Dr. Maikanti Baru, disclosed this in a presentation at the 12th Annual International Conference of the Nigerian Association for Energy Economics/International Association for Energy Economics (NAEE/IAEE), on Monday.

He said the process would allow for free flow of investments into the industry with far reaching effect across all tiers of its operation.

Speaking on the theme: Energy Efficiency and Access Imperatives for Sustainable Development in Emerging Economies, the NNPC GMD who was represented by the NNPC Chief Operating Officer (COO), Ventures, Dr. Victor Babatunde Adeniran, stated that NNPC had been able to automate crude oil marketing process in the country.

He said: “This process has helped to evaporate the mystery around the management and sale of Nigeria’s crude oil grades with introduction of innovative solutions triggering an ambiance of transparency and stakeholders’ confidence in the operations of the COMD.

“I can state without equivocation that, today at a click of a button, we can tell you how much crude is sold, at what price, who bought it and where it has gone to”.

Baru listed other achievements of the corporation to include: transparency and accountability, increased crude oil production, improved nationwide fuel supply, joint venture cash call exit, renewed frontiers exploration and revamp of critical downstream infrastructure.

Earlier in his address, the President of the Nigerian Association for Energy Economics, Prof. Wumi Iledare, commended the NNPC for its remarkable support in the past 12 years.

Prof. Iledare appealed that the relationship be sustained to enable the professional body contributes meaningfully in generating solutions that the industry needs to grow the nation’s economy.