PIA 2021: Kyari tasks NNPC subsidiary to improve investments, jack up profitability in oil & gas sector

*The Nigerian National Petroleum Company (NNPC) Limited says the the country’s Petroleum Industry Act (PIA) 2021 offers several opportunities to attract investments to the sector, which NETCO and other subsidiaries could take advantage of to increase their profitablity

Gbenga Kayode | ConsumerConnect

In maximising the benefits derivable from application of the Petroleum Industry Act (PIA) 2021 in the oil and gas sector of the economy, Malam Mele Kyari, Group Managing Director and Chief Executive Officer (GMD/CEO) of the Nigerian National Petroleum Company (NNPC) Limited, has requested the National Engineering and Technical Company (NETCO) to take advantage of the opportunities provided by PIA to attract more investments and increase profitability.

ConsumerConnect gathered Malam Kyari spoke at the weekend in Lagos at a two-day NETCO Management Retreat with the theme, “Repositioning NETCO for Growth and Profitablity in PIA Times”.

The NNPC GMD/CEO stated that NETCO is one the subsidiaries of the NNPC and must key into the new mandate of the organisation, following the signing of the PIA by President Muhammadu Buhari August 16, 2021.

Malam Mele Kyari, Group Managing Director and CEO of NNPC Limited

Kyari also disclosed that the national oil company has been transformed into a more competitive and commercial entity which would continue to deliver value and dividends to its shareholders, report said.

The oil and gas industry is facing huge challenges due to the COVID-19 pandemic and the global energy transition, that have reduced investments in the upstream sector.

PIA 2021 provides several opportunities for stakeholders

Malam Kyari, however, noted the PIA has  provided several opportunities to attract investments to the sector which NETCO and other NNPC subsidiaries could take advantage of to increase their profitablity.

“NETCO, which is our engineering company, is in a unique position to take advantage of the investment opportunities created by the PIA.

“NETCO is one of the best engineering companies in Nigeria and globally and this is the time for us to look outwards and take advantage of opportunities that exist in Nigeria and beyond.

“A number of Engineering, Procurement and Construction (EPC) contracts are being lined up and you must deliver in a world class manner to increase our standings in EPC contractors globally,” stated he.

Adeyemi Adetunji, Group Executive Director (GED), Downstream of NNPC and Board Chairman of NETCO, likewise affirmed that PIA 2021 has codified the regulatory, administrative and fiscal framework for the industry.

Adetunji stated that NETCO’s involvement in the NNPC Refinery Rehabilitation project has put the subsidiary on the world map as one of the reputable companies in refinery rehabilitation.

“The presidential assent on PIA is a major positive step towards improving the state of oil and gas in Nigeria and it comes with the potential to create new investment opportunities.

“PIA has expanded the vista of Nigeria’s gas development as the country joins other hydrocarbon producers and consumers on the energy transition and de-carbonisation train,” NETCO GED said.

Mr. Johnson Awoyomi, Managing Director of NETCO, as well stated that the retreat was aimed at brainstorming on how to move the company forward, following the passage of the PIA.

In order to conform to the reality of the PAI, Awoyomi reportedly said that NETCO would focus on cost optimisation in project execution, and expand its business portfolio through diversification.

Awoyomi, who applauded Kyari’s leadership quality at the NNPC, said the declaration of N287billion profit in 2020 by the oil corporation was a testimony to the current Management’s cost-effectiveness.

NETCO, he said, would also intensify construction management activities, technical collaboration to expand its business frontiers, and seek more opportunities outside of NNPC within Nigeria and overseas.

Awoyomi, who commended the leadership ability of the NNPC GMD, said the declaration of N287 billion profit in 2020 by the corporation was a testimony to the management’s cost effectiveness.

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