The Nigerian National Petroleum Corporation (NNPC), has disclosed that it is expanding its non-oil and gas businesses, deploying technology and automating their processes and operations to reposition the industry for the new normal and ensure sustainability.
They are also working on reducing their cost of crude oil production in order to adapt to the low oil prices triggered by the coronavirus pandemic.
The disclosure was made by the Group Managing Director of NNPC, Mele Kyari, during his address at the Energy Industry Transformation Virtual Summit with the theme, Changing Global Energy Landscape Strategies for Industry Sustainability, on Tuesday, August 25, 2020.
According to a statement by the NNPC’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru.
Some of these new strategies are necessary for the oil sector which has been badly hit by the coronavirus pandemic.
Mallam Kyari explained that the new normal era brought about by the Coronavirus pandemic has, more than ever, reinforced the need to upskill the human capacity within the Industry for the next phase, and develop the capacity to attract, train and retain people in the Sector.
He spoke on the theme: “Changing Global Energy Landscape: Repositioning for Industry Sustainability” at the occasion.
“There must be collaboration across different dimensions; government, Industry, academia and, particularly, with the communities where we carry out our operations. The social license to operate is critical to the Industry’s long term survival.
Also, partnership among Industry peers to chart new ways of resolving Industry challenges and preparing for tomorrow cannot be over emphasized. I am delighted the SPE provides such veritable platform,” the GMD submitted.
He disclosed that for sustainability, Industry players must learn to manage cost, improve efficiency and deliver required cashflow (margins) for reinvestment and expansion, stressing that without creating profit today, “we wouldn’t be in a position to take advantage of the opportunities that keeps us viable and ready for tomorrow.”
Another key to reposition the Industry for sustainability, according to the GMD, is for Industry players to always act and take decisions with posterity in mind.
“We must bequeath to the next generation a world worthy to live in. Our operations must therefore be carried out in a safe manner without adversely impacting the environment. As you know, most discussions around energy substitution or green economy stem from looking at the Industry as ‘dirty’ and ‘unconscionable’. It must be reiterated that our Industry remains the bedrock of modern human existence. We must therefore work to create a positive view if we are to remain relevant in the long run,” he declared.
In his remarks, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said the proposed Petroleum Industry Bill would ensure that the abundant natural gas resources is used to promote national development.
He added that in collaboration with stakeholders, the Ministry, under his watch, would promote domestic utilization of gas resources so as to create job opportunities for Nigerians.
Delivering the keynote address, the President, SPE International, Shauna Noonan, clarified that the concept of energy transition was not to wipe out fossil fuel but rather an aspiration for cleaner energy.
She said the Society of Petroleum Engineers (SPE), Nigeria Council, has a great role to play in reducing energy poverty, noting that energy transition was important for greater value in the global oil and gas industry.
Earlier in his welcome remark, the Chairman, SPE Nigeria Council, Mr. Joseph Nwakwue, said the society was ready to offer professional services and work with all stakeholders to move the industry forward.
He informed that part of the society was focused on capacity building to develop the required skill set for the oil and industry operations, stressing that it was what informed the choice of the theme of the conference.