Expert tasks new NNPC GMD on productivity

An Energy Expert, Mr Bank-Anthony Okoroafor, has advised the Nigerian National Petroleum Corporation’s (NNPC) new Group Managing Director (GMD), Mr Mele Kyari, to ensure the country exceeded its crude oil reserve of 40 billion barrels for economic prosperity.

Okoroafor gave the advice in an Interview with our correspondent in Abuja on Wednesday.

Okoroafor said the new GMD should also focus on increasing the daily oil production of four million barrels.

President Muhammadu Buhari had on June 20 appointed Mr Mele Kyari to take over from Dr Maikanti Baru from July 7.

“Kyari’s background as a geologist will be a plus in government’s plan to achieve and exceed 40 billion barrel reserves and daily production of four million barrels per day (bpd).

“How he drives the industry and his vision for the industry will determine if he will actualise the government’s aspirations,’’ he said

He suggested that the new management should make local content a national agenda within the first 100 days in office.

Okoroafor also suggested that a summit be organised to brainstorm on how to use Oil and Gas as engine for economic transformation of Nigeria.

“He should lobby Mr President to sign Petroleum Industry Governance Bill (PIGB) as amended,” he added.

“The team should also brainstorm and set a road-map for 40 billion barrels reserve and four million bpd and exploration in the deep water,” he said.

He added that Kyari should clear uncertainties surrounding commercial frameworks and make room for attractive fiscals and regulatory regimes to pull investors.

“They should resolve all fiscal issues with deepwater; we should be talking about 30 FPSO’S now instead of seven, delays in tidying up commercial frameworks that will facilitate investment.

“Framework for the new commercial agreement with Oil Mining Lease 118, if signed, will unlock the significant aspect of deepwater development in Nigeria.

“He should work with the Ministry and Department of Petroleum Resource (DPR) to accelerate the renewal of soon-to-expire licenses for oil blocks

“Kyari should also create new concessions for the unallocated 53 deepwater blocks, since the last bid round was 12 years ago,” he said.

He said that the NNPC should approve and escalate to other projects especially the proposed framework between itself and operators on OML118.

“He needs to lobby government to assent to and speedily sign the PIGB (Petroleum Industry Governance Bill), PIFB (Petroleum Industry Fiscal Bill), PIAB (Petroleum Industry Administration Bill) and the PHICDB (Petroleum Host and Impacted Community Development Bill),” he said.