The Nigerian National Petroleum Corporation (NNPC) has said it is tapping into a number of business portfolios in the power, medical, housing and other sectors to strengthen the profitability of the national oil company.
This is part of measures to cope with the changes in the global crude oil market and to sustain revenue generation for the country.
This was disclosed in a press release signed by the NNPC Group General Manager, Group Public Affairs Division, Mr Kennie Obateru, who quoted the corporation’s Chief Operating Officer, Ventures and Business Development, Mr Roland Ewubare, as saying that the Ajaokuta-Kaduna-Kano (AKK) pipeline network would enable the NNPC to deepen its footprint in the power sector through the establishment of an independent power plant.
Mr Ewubare stated that NNPC would use its network of excellent medical centres across the country to provide innovative healthcare for Nigerians.
“NNPC is creating an energy company that would have portfolios in renewable energy; we have initiatives on solar that is ongoing. We have got biofuels agreements with some state governments that would soon be activated.
“We do have a lot of non-core businesses that are aggregated under the Ventures and Business Development Autonomous Business Unit of the NNPC that would be expanded through effective collaboration and partnership with the private sectors,” Mr Ewubare added.
He disclosed that the NNPC has a lot of hectares of land across the country and would soon be partnering with private developers to reduce the housing deficit in the country for the benefit of Nigerians who are the core shareholders of the corporation.
Mr Ewubare explained that NNPC’s aspiration was to achieve a $10 per barrel production cost by the fourth quarter of 2021, adding that a lot of logistics costs would be recalibrated to drive down the cost of crude oil production in the country.
“When you have a low commodity price regime, as the case now, the only way we are able to squeeze out some reasonable cash and financial gain to the nation is by curtailing and constraining our costs in line with the GMD’s aspiration to push for a $10 per barrel cost of production. Against this backdrop, the conversation around cost becomes an imperative and urgent one,” Mr Ebuware stated.
He said the corporation was working closely with its partners to commercialize flared gas by converting it to Compressed Natural Gas (CNG) and Liquefied Natural Gas, adding that the gesture was in line with the body’s environmental sustainance policy.
