The group managing director, Nigerian National Petroleum Company (NNPC) Ltd, Engr. Mele Kyari, has tasked the National Engineering and Technical Company (NETCO) to take advantage of the opportunities provided by the Petroleum Industry Act (PIA) to increase its profitability.
Kyari spoke at the weekend in Lagos at a two-day NETCO Management Retreat, which had the theme: “Repositioning NETCO for Growth and Profitability in PIA Times”.
He noted that NETCO is one of 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 on August 16, 2021.
Kyari said 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.
According to him, the oil and gas industry was facing huge challenges due to the COVID-19 pandemic and the global energy transition which have reduced investment in the upstream sector.
Kyari said the PIA has provided several opportunities to attract investment to the sector which NETCO and other NNPC subsidiaries could take advantage of to increase their profitability.
He added, “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.”
Also, Mr Adeyemi Adetunji, Group Executive Director, Downstream of the NNPC and Board chairman, NETCO, said the PIA has codified the regulatory, administrative and fiscal framework for the industry.
He said NETCO’s involvement in the NNPC Refinery Rehabilitation project has put them in the world map as one of the reputable companies in refinery rehabilitation.
Adetunji said: “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.”
On his part, Mr Johnson Awoyomi, Managing Director, NETCO, said the retreat was aimed at brainstorming on how to move the company forward following the passage of the PIA.
Awoyomi noted that to align with the reality of the new petroleum industry law, NETCO would focus on cost optimisation in project execution and expand its business portfolio through diversification.
He said the company 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.