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DR.

BELLO ALIYU GUSAU Executive Secretary of Nigeria Oil and Gas Implementation Committee Perspectives and Prescriptions On the Nigerian New Energy Policy As it affects NNPC.

Nigeria, the 10th largest global producer of oil is on the verge of reforming, and restructuring her national oil body to launch it into the same operational mode like Petrobras and Petronas. The responsibility of achieving this onerous task falls on the hands of the members of the Nations Oil and Gas Implementation Committee (OGIC) Bello Aliyu Gusau .

Dr Bello Aliyu Gusau, the Executive Secretary of OGIC is one of the prime movers of this transformation aimed at making NNPC more business-oriented, which in turn will increase bottom-line and add value to the life of the people of Nigeria who depends on the revenue from oil as the countrys major source of income. Our profile on parade Bello Aliyu Gusau holds a doctorate degree in political economy and development studies. He once taught at Usman DanFodio University of Sokoto. Dr. Gusaus passion to ensure the systematic transformation of the nations oil and gas industry is so crystal clear that every word of knowledge from his mouth emphasizes the need to restructure Nigerias oil and gas industry. He did not mince an iota of word when he said: The National Oil Company, the NNPC, would be the major beneficiary of the Reform Programme. The idea is to transform it from being essentially an amorphous cost centre saddled with multiple and often time conflicting roles of policy maker, regulator and commercial operator into a purely profit oriented commercial outfit that is sensitive to the bottomline, and can raise its own funding, and above all operate beyond the Nigerian borders like many other National Oil Companies are doing currently. SUNNY OPUTA:

Why is the oil and gas reform necessary in the present day Nigeria? BELLO ALIYU GUSAU: Nigeria has been an oil producing nation for over half a century. By all strech of imagination this is a period within which we should pause and take stock on how this sector which is so critical to our national well being is performing. The outcome of this exercise evidently is that the oil and gas industry in Nigeria is performing well below its potentials. In addition, certain recurring problems have been bedeviling the industry across the petroleum value chain (upstream, midstream and downstream) that must be attended to, if the sector is to deliver the required maximum value to the nation. Among these problems are funding of operations especially in the upstream sector, the provisioning of the nation with the desired products in the downstream, etc. L-R Sunny Oputa and Dr. Bello Aliyu Gusau 1|Page

SUNNY OPUTA:

When did this move to reform the oil and gas industry of Nigeria especially the national body NNPC commence? BELLO ALIYU GUSAU: It is as a result of this that the administration of President Olusegun Obasanjo set up the Oil and Gas Sector Reforms Implementation Committee (OGIC) in April, 2000 under the chairmanship of Dr. Rilwanu Lukman, then serving as Special Adviser to Obasanjo on Petroleum Matters, to come up with far reaching recommendations in order to provide maximum and sustainable benefits to the nation and its people.

It was this committee that drafted the new National Oil and gas policy for the nations petroleum sector. The National Oil and gas Policy, however, simply provided broad and general guidelines. For there to be any use to the sector, they must transform into concrete laws, institutions and processes. In order top accomplish the above, the new administration of President Umar Musa Yar dua appointed a new OGIC, still under the chairmanship of Dr. Lukman to implement the National Oil and Gas Policy in September 2007. SUNNY OPUTA: Whats the level of acceptance or excitement within the rank and file of Nigerian community and stakeholders concerning the oil and gas reform? BELLO ALIYU GUSAU: There is widespread agreement in Nigeria among all the key stakeholders that these reforms are long overdue. Indeed, as President Yardua himself said these reforms should have been implemented 20 years ago. Our interaction with the stakeholders revealed not only acceptance of the basic thrust of the new policy, but great and intense excitement for its prescriptions to be turned into law, and be implemented. SUNNY OPUTA:

Now that the new energy policy bill is in the National Assembly, what are the prime expectations and hindrances? And whats the status? The National Assembly is, without doubt, is keenly aware of the enormous importance of the Petroleum Industry Bill (PIB) currently before its two chambers to the nation. Indeed, we believe, the Assembly has decided to give accelerated treatment to the legislation. The bill has already gone through Second Reading in the House of Representatives. We have no doubt that the Senate would soon follow suit. BELLO ALIYU GUSAU:

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SUNNY OPUTA: If the Oil & Gas Reform Bill is eventually passed into law, how will it accelerate internal growth and economic development in Nigeria? BELLO ALIYU GUSAU: The thrust of the new legislation is to provide a comprehensive, all encompassing legislation for the countrys oil and gas industry. In addition, it institute separation and clarity of roles between the different actors in the public sector of the industry especially in the three critical areas of policy formulation, regulation of the industry and commercial operation. In particular, the new law seeks to infuse strict commercial orientation in the business arms of the industry, especially, the Nigerian National Petroleum Corporation (NNPC). The above is keeping with best global practices in governing oil and gas industries across the world. It would certainly pave the way for the oil and gas industry in Nigeria with means to live up to its potentials, and deliver maximum benefits to the nation. SUNNY OPUTA: The problem of the Niger Delta is the problem of humanity. How do you think that this problem could be curbed or minimized through the new oil and gas reform policy? BELLO ALIYU GUSAU: With or without oil the Niger Delta is a strategic part of Nigeria. In addition, the terrain is such that it requires extra attention by the Nigerian Government. Oil production in the region led to certain very real challenges in the area, including in particular environmental degradation, and threats to other forms of economic activities such as agriculture and fishing. Our proposal in the reform programme is for the government to be more proactive in dealing with the daily and continuous challenges emanating from oil production in the region, through systematic stakeholder and community involvement and consultation. SUNNY OPUTA: What does the future hold for NNPC? BELLO ALIYU GUSAU: The National Oil Company, the NNPC, would be the major beneficiary of the Reform Programme. The idea is to transform it from being essentially an amorphous cost centre saddled with multiple and often time conflicting roles of policy maker, regulator and commercial operator into a purely profit oriented commercial outfit that is sensitive to the bottom-line, and can raise its own funding, and above all operate beyond the Nigerian borders like many other National Oil Companies are doing currently.

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NNPC MUST PERFORM LOCALLY BEFORE GOING GLOBAL FAWIBE


Never in any circumstance forget your country, because that's where you were born. By: Hetti Against the backdrop of the aspiration of the Nigerian National Petroleum Corporation, to become an intergrated oil company, Chairman, International Energy Services, Dr. Oladiran Fawibe, in an interview with Martin Ayankola, says the NNPC must strive to be successful locally before going global. How would you assess the recently announced plan to transform the Nigerian National Petroleum Corporation into a strong local and global player? The transformation is part of the oil industry reform already encapsulated in the Petroleum Industry Bill currently before the National Assembly, and is expected to be passed into law very soon.

The whole philosophy of oil industry reforms is to reposition the Nigerian oil and gas industry to galvanise the Nigerian economy, not only in terms of generating revenues and foreign exchange earnings to the Nigerian governments, but also to increase the level of economic growth and development, through infrastructural development, technical know-how, empowerment of Nigerian people in terms of effective participation in the oil and gas industry whereby Nigerians will not be mere 'hewers of wood' and 'carriers of water'. It will also involve Nigeria using its oil and gas resources to advance its national interest through enlightened foreign policies, by playing its role among the international communities, as well as maintaining better environment particularly in the oil producing areas. Nigeria is expected not only to maximise its economic benefits from the exploitation of its oil and gas resources, but also promote a healthy environment and maintain socio-political stability and cohesion within the country. The transformation of NNPC is one of the instruments to achieve some of these goals. It is a set of reforms, as you may be aware, not confined merely to NNPC; but the transformation of NNPC into a strong and virile national oil company that is able to meet the aspirations of Nigerians is very fundamental. In what way will the transformation affect the image and operations of NNPC?

As you may be aware, NNPC had a predecessor in the Nigerian National Oil Corporation, which was established by a Decree in 1971 by Yakubu Gowon Administration. This was about the same time that Nigeria joined OPEC. The corporation went into operation about the middle of 1972 when it started to recruit the first set of its employees, and immediately thereafter with the recruitment of more senior employees, it began to roll out its programmes to actualise the dreams of the founding fathers. This corporation at the time had the aim of a fully integrated national oil company that would engage in oil exploration, refining and marketing of petroleum products. The NNOC was merged with the Ministry of Petroleum Resources in 1977 to form the 4|Page

NNPC, which we have today. But if you look at the history, the performance and the achievements of the NNOC during its life-span (1972 - 1977) in relation to the set goals, or NNPC since July 1, 1977, you will see serious limitations, or some lacklustre performance in relation to its main objectives. NNPC has not been made to focus on the basic functions that would have made it a fully integrated national oil company, or a commercial oriented organisation envisioned as a major player in the oil and gas industry. Its major role over the past decades has been more or less the supervisor of the IOCs activities being carried out by the international majors, and lately the indigenous oil companies. For example, as regards oil exploration and production, NNOC started well by taking some of the oil acreages vested into it and not being worked upon by the multinationals as its oil field territories. At the initial stage, it carried out series of exploration activities in the Anambra Basin, Chad Basin, and some blocks in the Niger Delta. Some of the initial efforts were not substantially rewarded, that is, the Chad Basin expedition, the Anambra Basin, which had predominantly gas reserve, which at that time was more or less an unwanted product. Some of the oil blocks worked upon in the core Niger Delta with some promise were later given to some Nigerian entrepreneurs with mixed background. The only legacy from the various exploration efforts of either NNOC or NNPC has been the oil fields currently being exploited by the Nigerian Petroleum Development Company, a subsidiary of NNPC. The success achieved here in terms of oil production was partly due to its active collaboration or alliance with AGIP Energy Resources, its partner, in Edo, and some other areas of the Niger Delta. There is absolutely nothing wrong with the strategy of NNPC in this type of partnership as it is far better to partner to develop its field, grow its assets both in terms of reserve and production capacities, as well as enhance its competence, both technically and managerially. The end result has been that NNPC has not been able to become a dominant factor in the upstream sector of the industry as a major producer of oil and gas.

In the refining sector, the only refinery in existence before NNOC/NNPC was the old Port Harcourt Refinery, which was established in 1965, with installed capacity of about 35,000 barrels per day, which was expanded to 60,000 barrels per day in the 70's. This refinery itself was taken over by the government and handed over to NNPC, and became a subsidiary of the corporation. The other refineries - WRPC was commissioned in 1978, KRPC and the new Port Harcourt refinery with a capacity of 150,000 barrels per day were commissioned in 1980 and 1989 respectively. All these refineries were built, owned by Nigerian government, and operated by NNPC. We all know the problems of these refineries over the years with the situation as of today that they could not produce refined products to meet the needs of the Nigerian market. This has necessitated the massive importation of petroleum products with the end not readily in sight. What about the aspiration of NNPC to be a global player? The aspiration and ambition of being a global player is indeed very desirable if NNPC can be allowed and empowered to work towards achieving this. However, there are basic prerequisites or pre-conditions among which is that global companies usually start as strong national companies within their respective countries. It is this strength that they project and expand to foreign territories. We usually talk about Petrobras, Petronas, 5|Page

Statoil as global oil companies, but these state oil companies merely expanded their local strong status across their borders and became effective as international players. If you do not have a strong base in your country or you are not major local player, aspiring to go to foreign territories, to me will be a mirage and frustrating endeavour. For example, the case of refining sectors, if NNPC cannot operate its domestic refineries to be able to supply products to the local markets, how we can reasonably expect it to be a major supplier of products to the international markets, or even say West Africa subregion where there is demand for petroleum products? Afterall, this is one of the areas where you can be a global player, just like PDVSA of Venezuela. If we talk about the upstream sector, you must have a deep pocket for you to be able to go out there to foreign territories, bid and win oil blocks or acreages to explore for oil and produce. With the hand-to-mouth status or cap in hand and begging for fund from government, one can hardly see the prospect of being very proactive in foreign territories. And having a balance sheet to leverage for loan in the international capital market does not mean that you will be able to raise loan to pay high signature bonuses, purchase quality data and undertake serious exploration. You need focus, commitment, and tenacity, which are usually scarce commodities with government enterprises in this country. Within the year, I quite appreciate that one of the strategies to be adopted by NNPC in promoting the upstream activities is by way of going to the international capital market to raise fund. I still find it intriguing that the Nigerian government takes its revenues either by way of royalties, tax payments, and surplus funds from NNPC crude sales, together with the revenues generated from the oil companies, and yet NNPC was never allowed to meet its cash-call obligations or not willing to put substantial fund back into the industry ostensibly on the basis that government requires these revenues for developments such as the provision of social services and infrastructures, which are hardly there. You could hardly depend on government funding to engage in serious upstream adventure in foreign lands and make significant impact. NNPC and the Nigerian government must do their own work properly before venturing into foreign territories. Also take the case of provision of services, some years ago, Integrated Data Services Limited, a subsidiary of NNPC was bidding for jobs abroad with some remarkable success, which ought to have been pursued with focus and vigour. A situation where NNPC is breathing heavily on the IOCs to secure jobs for its subsidiaries at the expense of other Nigerian companies can hardly be helpful in enhancing the position of NNPC in project competitive market or international petroleum arena. In other words, its subsidiaries must be made to compete with other service companies to win jobs, fair and square, instead of goading the IOCs into awarding jobs to its subsidiaries, who would grudgingly go along out of fear of upsetting NNPC and cause problems for themselves in other business areas. NNPC must make its subsidiaries become entities with extremely high technical standards, open, and be comfortable to partner with. So the transformation of NNPC therefore, while it is very desirable and a reflection of strategic thinking on the part of the architects of the policy, must ensure that it is pursued to meet all the conditions that will make it realisable. In the first place, NNPC must strengthen its position locally; afterall, it is often said that charity begins at home. If NNPC is abused and derided

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locally for incompetence and ineptitude, it will be difficult for it to gain respect and confidence in the international market, where it has to compete either to produce oil, or engage in the downstream sector. The national oil companies such as ARAMCO of Saudi Arabia, PVDSA of Venezuela, PEMEX of Mexico and Petrobras of Brazil have all strong national or local base, which earns them respect in the international markets. We often talk of some national oil companies of foreign countries with admiration. It is simply because once they envision and chart the course of their programmes and strategies, they pursue them with focus and tenacity. Petrobras of Brazil and Petronas of Malaysia have pursued their aspirations and ambitions of being international oil companies. Taking Petrobras as an example, the Brazilian Federal Government took 56 per cent equity in Petrobras after its partial privatisation programme in year 2000. Now, Petrobras is acknowledged and respected as global leader in deepwater exploration and development and won an award for this achievement some few years ago at the Offshore Technology Conference in Houston. Again, Saudi Aramco is a fellow Organisation of Petroleum Exporting Countries' member national oil company. Aramco is widely recognised and respected around the world, not just because of the enormous resource base to which it has access, but also its overall competence. Saudi Aramco is generally regarded as a highly capable company, technically and managerially. How do you think NNPC can strengthen its position as soon as possible to make it a global player?

In the first place, it is expected that the Petroleum Industry Bill will soon be passed into law to give a legal teeth and kick-start the transformation process. The inauguration of this arrangement should go along with the capitalisation of NNPC Limited using its balance sheet to be able to raise funds to carry out its operations. The local banks or financial institutions must be willing to support NNPC while the corporation in turn must quickly develop a corporate structure and governance that will engender confidence of both local and international financial institution. It must transform from being mere custodians or managers of government assets in the IOCs to a full or total commercial entity that is able to compete head to head with the IOCs, albeit with government interest for access to resources and markets. NNPC must develop to the status of a major oil and gas producer in the country, and not through appropriation of equities of government in the IOCs. With this strong home base, it can seek the mandate to expand its operation to foreign territories. Government on its side must be willing to let go. Yoruba people used to say that when you sell a goat, you must release it with the rope tied to its neck. If NNPC is still tied to the apron string of the government and operating under its shadow, it may cast a negative shadow over it, and may therefore not be taken too seriously when it gets to raising big money that will enable it to her make a difference either locally or even to partner with international oil and gas companies. NNPC must recognise that the rules of the game will change. It will now be under the scrutiny of the financial markets, and consequently always have to produce results.

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NNPC Flags off Transformation Agenda


In anticipation of the passage of the Petroleum Industry Bill currently in its final stage at the National Assembly, the management of the Nigerian National Petroleum Corporation, NNPC, has concluded plans to formally kick off its transformation agenda. The launch which is billed to take place on Friday, 5th March, 2010, in the Amphitheatre at the Corporate Headquarters of the corporation will signal the commencement of activities aimed at transforming NNPC from a government corporation into an incorporated public limited liability company that is commercially focused and profit-driven. In readiness for the unprecedented reforms that the Petroleum Industry Bill is expected to bring about in the entire oil and gas industry when it is passed into law, we are formally unveiling what will constitute the NNPC Transitional Transformation Agenda and its timeline, the NNPC spokesman Dr Levi Ajuonuma stated. It would be recalled that the transformation agenda was quietly set in motion last year leading to a N27.5 billion savings in costs of operation for the corporation. The formal launch of the transformation agenda is expected to get all members of staff of the corporation to key into the reform programme with a view to making a success of it. Some of the dignitaries expected at the launch include the Honourable Minister of Petroleum Resources, Dr Rilwanu Lukman, the Minister of State for Petroleum Resources, Mr Odein Ajumogobia (SAN), the Special Adviser to the President on Petroleum Matters, Dr Emmanuel Egboga, the Director General of Budget Office of the Federation, Dr Bright Okogwu and the Chief Economic Adviser to the President, Tanimu Yakubu. Other expected guests include the Chairmen of the Senate and House Committees on Petroleum Resources (Upstream), Petroleum Resources (Downstream), Petroleum Resources (Gas) as well as their counterparts in Finance, Appropriation, and Public Accounts Committees and a host of other stakeholders in the oil and gas industry.

NNPC Transformation Moving to Final Stage


By Economic Confidential March 2010 The second phase of the transformation of the Nigerian National Petroleum Corporation, NNPC, was formally flagged off with the Minister of Petroleum Resources, Dr Rilwanu Lukman, charging the management of NNPC to ensure that the agenda does not fail. Dr Lukman gave the charge in a keynote address he delivered at a Town Hall Meeting of the management and staff at the Corporate Headquarters of NNPC to formally unveil the 12-point transitional transformation agenda that will guide the operations of the corporation in the next 18 months. We cannot allow this transformation to fail because the transformation of NNPC is the linchpin of the PIB. Without NNPCs transformation, the visions and aspirations behind 8|Page

the PIB will remain a theoretical construct. More broadly, without NNPCs transformation, there can be no energy sector reform, he declared. The Minister also pledged his support for the transformation project and hailed the NNPC for being ahead of the curve in thinking through the implications of the PIB and putting in place the building blocks under the new regulatory regime. Dr Lukman, however warned that the formal launch of the second phase of the transformation which came complete with a roadmap and timeline was only the beginning of the journey.

He urged the management and staff of NNPC to be prepared for a rough ride as huge transformation projects like the type being undertaken by the NNPC required tough decisions to be made. He also urged them to work together as a team. Presenting the 12-point agenda to the forum, the Group Managing Director of the NNPC Dr Mohammed Sanusi Barkindo outlined a number of reasons why the transformation of the corporation has become imperative.

Dr. Barkindo said NNPC has not been able to live up to public expectations with regards to production and supply of petroleum products because the current structure does not allow its top managers to spend quality time on the core business of the corporation. A recent survey carried out revealed that our top management staff spend less than onethird of their time attending to their core management duties and the core business of the corporation. This is because we are functioning as an appendage of government and so we are often called upon to attend to political matters that are outside our core functions. That is the situation we find ourselves, and this is not a sustainable way of running any business, he said. Barkindo expressed the commitment of all the Group Executive Directors of the Corporation to the full implementation of the 12-point agenda which include monetization of non-core assets, identification of capitalization needs and identifying financing options, resizing key functions to target levels and restructuring of the Corporate Headquarters as a holding company, define legal set-up and autonomy for subsidiaries and optimize group-wide procurement capabilities. Other items on the agenda aimed at transforming NNPC into a performance-based organization include defining clear roles and accountabilities and fortifying merit-based HR evaluation; institutionalizing the 100-day plans and monitoring delivery through the transformation office; execution of organic and inorganic growth plan; optimizing supply chain and delivery of capital projects to support turnaround; developing investment initiatives and the right-sizing of the organization; defining IJV models to consider and negotiating transition to IJVs; and developing and executing retail growth plan with a view to consolidating crude and oil products trading into a Supply and Trading Company. The GMD said the implementation of these agenda would get the NNPC on the path of transformation to a fully commercialized and profit-focused organization that would no longer be an onlooker but a committed participant in every sphere of the oil and gas business across the West African sub-region. 9|Page

The high point of the occasion was the unveiling of the 12-point agenda by the Minister of Petroleum resources, Dr Rilwanu Lukman who was ably supported by the Minister of Finance, Dr Mansur Mukhtar, Minister of State for Petroleum Resources, Mr Odein Ajumogobia (SAN), the Chief Economic Adviser to the President, Dr Tanimu Yakubu. The Minister of Finance also pledged the support of the Federal Government as well as that of his ministry to the NNPC transformation project.

NNPC Retools for Transformation


..As FG Approves Promotion, Redeployment of Management Staff across SBUs Determined to position the Nigerian National Petroleum Corporation on the irreversible path of growth and sustained development, the Federal Government on Thursday approved the promotion and redeployment of some top Management staff across the Corporations Divisions and strategic Business Units. The re-tooling exercise which is designed to provide a fresh gusto in line with the NNPC Transformation initiative involved the promotion of 38 senior managers and the redeployment of 23 top Management staff into vacant and existing high level Management positions. To consolidate on the gains in the downstream sector, Simon Itua Ehiemua, former General Manager of Brass LNG was appointed the new MD of Warri Refining and Petrochemical Company, WRPC while Samuel Olumuyiwa Babatunde, Executive Director Operations of NETCO is now the Executive Director Operations of WRPC. Mr. Ian Gregory Udoh former GM, Process Engineering is now the Executive Director Operations (EDO) of the Kaduna Refining and Petrochemical Company, KRPC. Mr. Idi Muktar former General Manager HR of the NLNG is now the Executive Director Services (EDS) KRPC. The Nigerian Petroleum Development Company, NPDC also got new appointees with the emergence of Mr. Ikechukwu Godspower Okafor former Manager, JV as the new EDO, NPDC while Ishaya Timothy Bamaiyi, former, EDS NETCO is now the EDS at NPDC. Also Alhaji Abdullahi Kallamu former General Manager Finance of NAPIMS is now the new Executive Director Finance of NPDC. Under the new arrangement, Mr. Gabiddon Meheux who was the General Manager, Gas & Power LNG has been elevated to the position of Group General Manager and Senior Technical Assistant to the Honorable Minister of Petroleum Resources while Mrs. Daba Manuel Obioha, Manager Services at the National Petroleum Investment Management Services, NAPIMS is now General Manager Services, NAPIMS. Also Engr. Dennis Ndubueze Ajulu former Manager Technical in the Renewable Energy Division of the Corporation is now the GM, Cost Engineering Downstream in the Engineering and Technical Division. Hamman Ahmadu Sambo was moved from the position of GGM Finance to the post of Managing Director, NNPC Pension while Aliyu Ibrahim Ahmed, former MD NNPC Pension is now the MD, Hyson, a subsidiary of the Corporation. Also, Engr. Abdullahi Suleiman Bashir, previously on overseas development assignment is now
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the new MD of NIGAZ while Umar Farouk Bello former GGM in the now defunct Special Services Division is now MD NNPC Retail. Mrs. Olive Ugadiya Egbuta, former EDS of the Integrated Data Services Limited, IDSL is now the GM in the Group Learning Division of the Corporation. Godson Uwaezuoke Okoli, GM in the Headquarters Accounts in the Finance and Accounts Division of the Corporation is now the General Manager Finance, NAPIMS. Throwing more light on the exercise, Group General Manager, Group Public Affairs Division, NNPC, Dr. Levi Ajuonuma stated that the exercise is part of a master plan to reinvigorate the NNPC workforce to put in place a human resource base that is adequately qualified and equipped to guarantee the Corporations ability to compete globally.

PIB: NNPC begins transformation training for staff


October 2, 2012 As Nigerians are expectant that the Petroleum Industry Bill (PIB) would be passed into law before end of this year with the attendant transformation and restructuring of some existing processes, the Nigerian National Petroleum Corporation (NNPC) has earnestly started training its workforce in preparation for the changes that would come with the passage of PIB. The corporation hired the services of an American-based consultancy firm New Generation Consulting Resources and Solutions (NGCRS) based in Cresco, Pennsylvania, USA, to train the NNPC staff to be adaptable to the new NNPC that would come with passage of the bill. The corporation organised a weeklong training in Lagos for select staff drawn from its different departments and The Nation spoke with the Principal Consultant of NGCRS, Dr. Njideka Kelley on some of the issues. Kelley said: The training is on change, reform and transparency and the participants are mid level to higher up cadres. As you know with the intended Petroleum Industry Bill (PIB), NNPC has been very proactive in training their staff on change. The training would be able to reform the corporation because the PIB will restructure the NNPC and with all of that, the highlight will be on transparency because that is what will sustain the change and the reform practices that will come to NNPC. The first training we had for the NNPC was on improving organisational security, which was last year and we are taking the training to Delta State later this year for the Asaba Chamber of Commerce. On the compliance level of the participants to the intended change, she said: when we started on the first day, they had mixed feelings on whether change will truly be possible in NNPC considering where the country is coming from and what the societys mindset is in terms of what constitutes value but by the time we rounded off, the level of compliance had improved tremendously.

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The participants were a great group, very awesome, they were willing to learn. They gave their own assessment and feedback. The class was very participatory-oriented, with methodology in discussions, case studies and lectures, so as we give theories, we also give practical, which are real life examples. The participants were very compliant. On whether there are plans to have an overseas part of this training so that participants can see what their counterparts in other developed countries do in terms of transparency, she said, we have not discussed that with NNPC but it is definitely worth giving a trial. The NGCRS chief advised the management of NNPC to continue to invest in their human capital development, which she noted doesnt just mean sending them to training but also doing internal reviews and making sure that the resources that they put in towards training is received back through the application of the duties, functions, interpreting the core values. In other words, the management has to make sure that the participants are assessed through tests and periodic reviews, examination, among others internally to ensure that the money the corporation spent to receive these principles are also received back by the staff by way of periodic reviews and application. All of these have to be inculcated into NNPC, she added. To inculcate the right principle in the countrys workforce, the first is to create awareness, she said, adding you have to understand change by knowing and accepting that you want a change. You have to understand that you have a problem and want to solve it that is the first step. In keeping a change sustainable, you keep on emphasising where you were, where you are going, and where you are now. NNPC is not the way it was 20 years ago. There have been improvements, which have been developmental because they keep improving on them. But where we are going is a transformational change, she said. She also said the training would certainly bring a change that would make the corporation as competitive as other state owned oil companies such Statoil and Petrobras. Because NNPC has recognised that there is a problem that needs to be solved and part of it is a cultural problem. It lies in the core values and principles of NNPC and the country as a whole because it is not news that Nigeria has social problem, which corruption is at the top. NNPC being a government entity is perceived to be part of that corruption. This may be true or false but if we want to take it from that point of view, we can say that NNPC is doing all that it can within its power to change given the external influences that sometimes are not conducive to business. This is the reason they are investing in their human capital and make sure that people begin to understand that it will no longer be business as usual especially when the PIB is passed into law. The reformatory practices have to be put in place. They have to be transformed and that is the key. They must be transparent and those core values must have to be revisited. NNPC has to go back to the drawing board and look at the ways they had been doing business, look at their operations and technology and see how all of that will influence their bottomline and will start to make profit. To achieve this they have to streamline many things. NNPC Transformation is Cost Rationalisation not Staff Rationalisation - Dr. Barkindo.......says KPRC set to up operations to 90%
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Fears that the ongoing Transformation of the Nigerian National Petroleum Corporation, NNPC may lead to massive job cut in the Corporation was dispelled on Wednesday as the Group Managing Director, Dr. Mohammed Sanusi Barkindo stated without mincing words that the reform would create more job opportunities for Nigerians. Dr. Barkindo made this disclosure during the launch of the NNPC transformation zonal town hall meeting while briefing newsmen after an intensive facility tour of the Kaduna Refinery and Petrochemical Company limited. He noted that on the contrary, the reform of the national oil company, which is an expansion programme of some sort, would lead to the engagement of more hands revealing that even some retired staff have been contracted to sustain the operations of the Corporation. The transformation of the NNPC is cost rationalization and not staff rationalization, it is about expanding the scope of the Corporation, it is about efficiency and I can report to you that NNPC needs more staff for the effective implementation of the reform programme and we have resorted to recalling some of our retired colleagues on contract, Dr. Barkindo submitted. Dr. Barkindo posited that KPRC as at now is operating at 60% and plans are underway to step up its operational capacity to 90% as soon as crude supply to the plant is up. According to the NNPC helmsman, KPRC has been receiving crude from crude suppliers in Warri and Escravos which is insufficient hence the present 60% operational capacity. He was however quick to add that the Corporation together with KPRC are working round the clock to increase crude supply in order to up the operational capacity of the plant to 90%. He disclosed that several companies have indicated interest in investing in the Corporation saying that most of the investors are waiting for the conducive environment which is hinged on the passage of the Petroleum Industry bill and the Federal Government proposed deregulation of the downstream sector of the petroleum industry. Dr. Barkindo opined that the present status quo where the Corporation operate as a cost centre and an appendage of government with management spending several hours off core business was not sustainable and called for the commercialization of the operations of the Corporation and all its Strategic Business Units as the panacea to its financial down turn. The Group Managing Director alluded to the fact that the domestic and international oil markets have endorsed the transformation agenda of the NNPC considering the strategic contributions of the national oil company to the oil market. In his welcome address, the Managing Director of the KPRC, Engineer Bolanle Ayodele assured the NNPC management of the readiness of KPRC and other SBUs to key into the transformation initiatives of the Corporation as it moves towards an international oil company. We are ready for the challenges associated with finding our way into the league of successful state owned refineries. Nothing but a complete turnaround from a cost centre
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to a profit centre will be good enough for us, Engineer Ayodele declared.

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