How NNPC Defying The Odds, Standing ‘Shoulder-High’ – Baru

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, on Tuesday, spoke on how the Corporation has managed to record successes despite the challenges it has faced in recent times.

Baru spoke at the 2018 Nigeria Oil and Gas Conference and Exhibition (NOG) themed “Driving Nigeria’s oil and Gas Industry Towards Sustainable Economic Development and Growth,” which took off with the official opening and ministerial tour by both the State Petroleum Minister, Dr Ibe Kachikwu, the Secretary-General of OPEC, Mohammad Sanusi Barkindo and himself.

The three-day conference and exhibition which commenced at the International Conference Center (ICC) in Abuja today, will see attendance by over 700 industry professionals and stakeholders who are expected to explore new business opportunities within the country’s oil and gas sector.

Delivering his keynote address titled “Outlining NNPC’s Future Plans and Priorities,” Dr Baru outlined how the NNPC has been able to “stand shoulder-high” by remaining resilient “through bumps and stumps” as well as the plans the organisation was putting in place to remain hard-wearing.

“The journey has been quite challenging and exciting as well. We have journeyed through hills and valleys, through bumps and stumps; nonetheless, our resilience has ensured that NNPC continues to stand shoulder-high,” he said.

Baru said the NNPC’s “outlook for 2018 and beyond is to be in the capital market to raise more finance for new oil and gas projects.

“We intend to sanction the multi-billion dollars Bonga South West/Aparo (BSWA) project as soon as we conclude an agreement on the Heads of Terms with SNEPCO on the various pending PSC Arbitration disputes.

“This will jump-start the resolution of all the other Production Sharing Contract (PSC Arbitration Disputes),” he said.

Speaking on the unprecedented domestic demand for gas by consumers, the NNPC GMD said gas consumption in the country now surpasses 4, 000 million standard cubic feet per day (MMSCFD).

He noted however that, “within the next three years, with our Joint Venture partners, we are committed to increasing natural gas availability from the current 1.5bscf/d to about five billion standard cubic feet per day in 2020.”

“We would continue to progress with our seven Critical Gas Development Projects (7CGDP) which has also been established to deliver about 3.5bscfd of gas to the domestic market by 2020.

“Recently we approved 2.8 billion dollars, 614Km Ajaokuta-Kaduna-Kano (AKK) pipeline project as a demonstration of our commitment which anchors on developing structured gas architecture across the length and breadth of Nigeria.

“This trajectory will continue to be our priority in the medium to long-term,” he said.

Speaking further, Dr Baru said in order to reassure gas producers and boost confidence in the country’s gas sector, efforts would continue to be put in place to ensure that players in the industry always profit from their hard work.

“The World Bank Partial Risk Guarantee (PRG) would be sustained to provide securitisation of gas revenues. These interventions are boosting confidence in the gas sector

“On the gas export market, part of our strategic aspiration for gas is to strengthen our footprint in high value gas export through LNG and aim to secure about 10 per cent of global market share of traded LNG.

“On the expansion of our existing 22MTPA NLNG plant, we are at the verge of taking Final Investment Decision (FID) this year for additional 8MTPA NLNG Train 7 Plant,” said the NNPC boss.