NNPC Plans To Sack 1,100 Staff In 2016 - Ibe Kachikwu

(m) at 18-12-2015 09:49PM (4 years ago)

(18327 | Hero) Online

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, yesterday, stated that he had received the Presidency’s approval to commence the final phase of the restructuring of the Nigerian National Petroleum Corporation (NNPC), which would see the Corporation unbundled into four components, while about 1,100 of NNPC headquarters’ staff would be disengaged.

He also stated that the country no longer has the resources to fund its oil and gas industry, and it is therefore, considering and developing new models of financing for the industry in the days ahead.

Kachikwu, who spoke at a town-hall meeting in Abuja, yesterday, disclosed that in January 2016, the final decision on the fate of the country’s refineries would likely be made. He also stated that arrangements have been concluded to adopt a price modulation mechanism that would see the corporation setting a price ceiling of between N87 and N97 per litre for Premium Motor Spirit, PMS, also known as petrol.

Kachikwu, who doubles as the Group Managing Director of NNPC said, “Financing is going to be a key component of our goal, because new models of financing would have to emerge. The country does not have the sort of resources to continue to fund the oil industry. As we go upstream, we are going to begin to see a lot of innovative financing mechanism to provide funding for the oil industry.”

“My dream, if I achieve it, is that by the end of 2016, we would completely exit cash calls and be able to find our funds one way to help support our business and get a lot more autonomy in terms of running the industry and report, basically, profit to the Federal Government.”

On the unbundling process, Kachikwu said the NNPC would be broken into four key components, namely: the upstream company, downstream company, the midstream company, which is gas and power marketing, and the refining group holding company.

According to him, one of the major restructuring efforts would be in making the headquarters operations cost effective, hence, about more than half of its 2,200 core headquarters staff would be whittled down, with a lot of the affected staff a$$igned to the subsidiaries to help make the units more efficient and profitable.

Kachikwu said, come January 2016, strategic decisions would be made in terms of what areas of the country’s refineries would be closed to allow for full re-kitting before reopening them for operations, while it would also be considering the best operating model for the refineries.

“Ultimately, technical support, technical services, and technical joint venturing would also be models we would be looking at and reviewing in terms of the refineries. The whole idea is find the funds, find the right skills that you need, support the skills that you have and try to give out, real-time, above 90 per cent consistent performance in refining.”

On the issue of fuel subsidy removal and subsequent hike in the price of PMS (Petrol), Kachikwu stated that, “One thing we are very committed to next year, is to reduce the level of Federal Government subsidy, if any, to the industry, so that the industry can grow on its own strength. We can do that without the mechanism of saying subsidy is being removed or whatever, but have a benchmark approach to setting prices. We are going to see a lot more quarterly type analysis of what prices would go for the downstream industry, relative to the price of crude oil,” he stated.

“The report that fuel is going to sell for 97 was not a correct. I did not say refined products will sell for N97. I said that between a band of N87 and N97 per litre, we are going to be looking at prices. Today, the prices are largely close to N87, so there might be no need to change prices,” he added.

The minister also disclosed that the Federal Government was considering allocating a number of marginal oil fields to the Nigerian Petroleum Development Company (NPDC), if it performs creditably, so as to help it increase its crude oil reserves base.

He also disclosed that a much more focused audit would be conducted on the operations and activities of the NPDC, to ascertain its a$$et base and also determine whether it is increasing or depleting its reserves.

Speaking on NNPC’s financials, he said: “Most of the management accounts up to 2014 are fairly finished; we are now looking at external audits. Audits were last done in 2010. We have brought the management accounts up to current; the external audits are ongoing; the 2012 to 2014 audits we expect would be done by March next year, which would bring us likely current.”

According to Kachikwu, the focus of the Federal Government is to get the NNPC back to profitability to ensure the sustenance of the company, while it is also targeting an increase of Nigeria crude oil production to 2.4 million per day in 2016.

“For upstream there are some key essentials, average production for most of last year was 2.19 million barrels per day, while we think we ought to be able to move forward a little bit to 2.4 million barrels in 2016. To do that there are key things that needs to be looked at.”

gogoman (m) at 18-12-2015 10:39PM
(31814 | Addicted Hero)

action without result, typical FREETHINKER FAMILY
Ayodun1 (m) at 19-12-2015 12:17AM
(2072 | Gistmaniac)

And add even more to the unemployed list..... ?

kp45 (m) at 19-12-2015 12:17AM
(10363 | Hero)

Novic (m) at 19-12-2015 12:26AM
(15342 | Hero)

That was good, they are too many and that they make them overcome boundry
Oworen25 (m) at 19-12-2015 01:04AM
(12234 | Hero)

You said that you have plans, is your plans sacking this workers and Not planning to employ another ones so that The non employment rate will be down.
Zadok1 (m) at 19-12-2015 07:24AM
(638 | Upcoming)

Quote from: mr gogo on 18-12-2015 10:39PM
action without result, typical FREETHINKER FAMILY
Nigeria is a failed state, Biafra is loading,
Biafra is the only solution left.
DAMILARE100 (m) at 19-12-2015 09:03AM
(4822 | Gistmaniac)

That is the Change
zezprincess (f) at 19-12-2015 10:17AM
(7927 | Hero)

Nawaooo,ibe kachikwu is like ur following your master(change party)footsteps,instead of empolying jobless graduates that are rooming the streets,u choose to sack employEes&staffs,hmmm,And is that the more reason why you deleted your facebook account so that pple will not disturb you for job."If men are God"......
botlex (m) at 19-12-2015 12:13PM
(2555 | Gistmaniac)

You plan to achieve a lot in 2016 by sacking 1100 workers. How would you feel if you were the one to be sacked? You've got to have a serious rethink over your plans
christianity (m) at 19-12-2015 01:17PM
(7321 | Gistmaniac)

so,its only tru sacking dat u ppl will make the con3 a beta palce to dwell in???
winace (f) at 19-12-2015 03:57PM
(30152 | Addicted Hero)

Interesting. VERY INTERESTING. Una never see anything yet.
diezo (m) at 19-12-2015 04:11PM
(2135 | Gistmaniac)

sweetestchy (f) at 19-12-2015 06:52PM
(113 | Upcoming)

Sacking everywhere dey shld expect rubbering too, may God help me country. This s not what we all voted for.... Our hope s in d hand of God
Trueyarn (m) at 19-12-2015 07:03PM
(10116 | Hero)

Let's see how it will all roll out,no matter what u do Kachukwu,I know people must survive by God grace,Naija are used to any situation their find themselves.
okatee (m) at 23-12-2015 11:31PM
(7638 | Hero)

hw will dere b money, wen all d UBAH families nd ODETOLA don pack our money fr oil nd gas.
Novic (m) at 24-12-2015 06:17AM
(15342 | Hero)

They have reason for doing what they are doing, this country petrolium issue must be stand well and move forward. and also perhaps they are too many.
moralemike07 (m) at 5-01-2016 09:22AM
(3859 | Gistmaniac)

Create job, and not unemployment.