How NNPC contributes to Nigeria’s dwindling oil fortunes –— Ex-Director

A former Group Govt Director, Engineering and Know-how Directorate of the Nigerian Nationwide Petroleum Firm (NNPC), Alexander Ogedegbe, has spoken on the components behind Nigeria’s recurring woes within the oil sector.

Mr Ogedegbe, who retired from the NNPC in 2003, spoke on Come up TV’s breakfast programme, ‘The Morning Present’ on Wednesday.

He stated the nation’s oil sector has been underperforming because of the incompetence of NNPC staffers and different operators within the trade, mentioning that the oil agency has failed, for a very long time, to put money into workers coaching for optimum capability.

He claimed that the NNPC has been “outsourcing all its technical capabilities” for the previous 20 years.

“I let you know, after we have been in workplace, you might have a look at each stage of manning, that’s staffing, and see competence and expertise. However how many individuals on the stage of government administrators, as an example, have ever drilled a properly or been in an operative place. That’s the issue. When you might have folks, who man the corporate however haven’t any hands-on expertise, then what are we speaking about?” he stated.

The previous group director stated the nation has didn’t file sufficient manufacturing on account of an absence of funding within the trade’s operational amenities.

“Fuel funding within the final 10 years has been nearly nil. For example, there aren’t any new wells. The previous wells have been overdrawn. And oil firms aren’t investing. The wells can solely produce and decline in manufacturing charge. It’s important to have new wells, improvement wells, and even some appraisal wells, however none of those has materialised. When you don’t have new wells, you’ll be able to’t produce.

“When you recall in 2017 or 2018, the expectation of recent funding was about $16 billion to $17 billion, however solely three or 4 per cent of this got here on,” he stated.

Regardless of being ranked the fifteenth oil-producing nation on this planet, Nigeria’s oil trade has continued to undergo declining oil manufacturing.

With a mean of 1,083,899 barrels per day in July, Nigeria’s crude oil manufacturing plunged beneath a million barrels per day (972, 394 bpd) in August, the bottom ever in a number of years, based on the Organisation of the Petroleum Exporting Nations.

The scenario, exacerbated by the rising oil theft, has continued to hinder the event aspirations of Nigeria, a rustic closely depending on oil revenues to fulfill its wants.

To resolve the recurring woes within the sector, the Nigerian authorities lately unveiled the brand new Nigerian Nationwide Petroleum Firm Restricted (NNPCL), which formally modified the oil agency from a completely state-run entity to a industrial oil firm, restricted by shares.

However Mr Ogedegbe, an engineer, stated he was but to see the distinction between NNPC and the NNPCL, other than the change of title.

“Perhaps we’ll see one thing (otherwise) once they (NNPCL) roll out correctly,” he stated.

On the Petroleum Business Act 2021, the previous NNPC official stated “not a lot” has been gained from the act and that the operations of oil & gasoline weren’t considerably improved by the act.

On oil theft, the previous director stated it’s “utterly a safety downside” that ought to be tackled by the federal government and never the NNPC.

“NNPC can not deal with safety outdoors its limits, (there’s) no facility to do it,” he stated.

‘What could be finished”

To deal with the recurring dilemma within the nation’s oil and gasoline sector, Mr Ogedegbe stated the oil agency ought to put money into coaching its workers members and recruit of “finest palms” into the trade.

“After I look again, 10 to fifteen years in the past, I don’t see succesful folks changing those that are leaving,” Mr Ogedegbe stated.

He additionally stated the federal government ought to put money into the restore and constant upkeep of refineries, saying it was disturbing that the nation’s refineries haven’t been working for years.

“In 1991, Nigeria was producing 100 per cent of its necessities for the merchandise. All of the refineries have been working, some 90 per cent, some 80 per cent – I imply the refineries at Warri, Kaduna and Port Harcourt. Slowly, due to attrition of skilled workers and lack of correct funding and upkeep, the capability decreased,” he stated.

‘NNPC, not able to working refineries’

Mr Ogedegbe equally requested the federal government to privatise the nation’s refineries to reverse the development. He stated he had written to successive Nigerian governments, detailing how you can correctly perform the privatisation, however that his strategies have been ignored.

“I stated (it ought to be) majority shareholding to competent operators with at the least 25 to 30 per cent to the federal government or NNPC, with the intention to nonetheless proceed to get your dividends,” he stated.

“However, beneath the current circumstances, the NNPC is incapable of working the refineries as a result of all of the workers that have been skilled and have expertise are not there.”

He stated the federal government “should take away subsidies” earlier than privatising the refineries, explaining that with out eradicating the subsidies, operators won’t make a revenue.