NNPC is Heading in Right Direction — Kyari
Mele Kyari who is the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) in this exclusive interview with Valuechain Special Edition sheds light on how the NNPC is solving its biggest problems of transparency and accountability in the conduct of its businesses in addition to how COVID-19 has opened opportunities for business automation and process improvements at the Corporation
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You recently clocked one year in office. How has it been so far since you took the reins of office more than twelve months ago?
It’s been a great experience so far. Though not devoid of challenges, but we have been tackling the challenges headlong.
NNPC under your watch is striving towards greater transparency evident in the publication of its audited accounts for the first time in decades and having recently joined the EITI to commit to observing the EITI’s standards and expectations. How important are these feats for the NNPC?
If you remember, when we came in, we promised greater transparency and accountability in the conduct of the Corporation’s businesses. That promise was borne out of the need to rid NNPC of the image of opacity that had dogged it over the years. It was one of the biggest problems of the Corporation and we thought we should do something about it and let the world know that we really have nothing to hide.
In any case, we are expected to be accountable to the over 200 million Nigerians, who are our shareholders. In the NNPC, we have entrenched this culture of openness and disclosure because we have nothing to hide. So, in terms of the significance of the publication of our audited financial statements and the listing of NNPC as an EITI Supporting Company, I think they show that we, as a Corporation, have indeed nothing to hide. I am confident that we are heading in the right direction.
COVID-19 has brought a lot of disruptions from the upstream to the downstream of the oil sector including huge impact on government revenue. How serious is the impact of COVID-19 on the industry in general and on NNPC in particular?
The COVID-19 pandemic caused a lot of shock in the business world, and particularly in the global oil and gas sector which we are part of. At the height of the global lockdown, you would recall that crude oil prices crashed to sub-zero level. There is no denying that it affected our revenues badly. But the good thing about this unprecedented development is that we immediately activated our Business Continuity Plan (BCP) and were able to sustain production in the face of that and didn’t have to shut down our wells as was the case in some climes.
The situation opened our eyes to certain opportunities for business automation and process improvements. Today, we have cut waste in our contracts; our openness with contractors and partners has secured their buy-in and we have seen a cost reduction across all segment of businesses and operations.
You have said at several fora that NNPC’s major concern is the high cost of oil production per barrel and that the target is to bring it down to $10 across board. What is the situation now?
Like I stated earlier, we are working assiduously with our partners to drive down the unit cost of production per barrel (to $10 and below) in the country…And we are beginning to see results in that direction.
From an NOC point of view, how will the industry look like post COVID-19?
Efforts at ensuring sustainable revenues from oil in the post-COVID-19 era are at two levels. First is the global level where OPEC and non-OPEC oil producers have come together to agree on measures to stabilize the market. That was what led to the production cut agreement which kicked off in May. Since that agreement, we have begun to see a rebound in the price of crude oil which has helped in shoring up oil revenues to the Federal Government.
Second is the marketing level where we are doing everything to ensure that we maintain and even increase the nation’s market share. By this, I mean our ability to ensure that we have reliable customers who buy our crude. So far, we have done very well in this by largely retaining our customers even throughout the period of oil price meltdown.
What kind of reception have you received from the media so far in terms of coverage of the reforms going on at NNPC?
The support from the media is tremendous. In any case, we have always considered members of the fourth estate of the realm as our partners in progress because we believe the public deserves to know what is happening regarding our business. Since coming on board, I will say I have enjoyed tremendous coverage and support from the media.
Some of the modest achievements we have recorded wouldn’t have been known without the support of you, the gentlemen of the press. I really cannot count the number of media engagements I had, both locally and abroad. In all these engagements, I can confidently say that the media has been very supportive of our reform initiatives. And we appreciate them for that. We shall continue to sustain this mutual partnership for the benefit of our country.
In your opinion, how would you describe the coverage of the NNPC by the media now compared to before? What kind of relationship do you desire between NNPC and the press?
To be fair, NNPC has always enjoyed a robust media coverage. The truth, however, is that much of it was negative. But we are beginning to witness a shift in that trajectory and I assure you that in the coming months, we shall continue to see a rise in our media presence, albeit for the right reasons.
What can be done to help the media improve coverage and reportage as well as understanding of the petroleum sector?
For me, as far as NNPC is concerned, the media is a major stakeholder towards ensuring that we deliver on our mandate to our shareholders. Therefore, from our end, we are raising the ante in terms of being upfront with information regarding every aspect of our operations. Almost every information you need about NNPC is out there on our website.
The Group Public Affairs Division is also there to provide any information and clear any issue with media practitioners. And from time to time, I also grant interviews as my schedule would permit. We do all these to ensure that in our quest to remain transparent, we did not only sustain stakeholders’ communications, but also create space for feedback.
Under my watch as the GMD of this great Corporation, rest assured that the whole world will know about every value realized from every kobo spent towards harnessing the nation’s abundant hydrocarbon resources.
Are there ongoing or planned engagements or programmes aimed at improving media coverage of the NNPC in particular and on sector reforms in general?
Yes. Apart from our regular press conferences, briefings, media tours, interviews such as this, and press releases, we also ensure attendance at conference and seminars organised by media organisations to shed light on topical issues, just like we did in your recent webinar on the Ajaokuta-Kaduna-Kano (AKK) gas pipeline.
Finally, let me use this opportunity to commend the efforts of Valuechain magazine which made its debut at the newsstands just a few years ago. Personally, I am particularly attracted to your motto which states that integrity shall remain your watchword in the cause of discharging your duties.
In a world where integrity is hard to come by, we can confidently say that you at the Valuechain have distinguished yourselves by engendering responsible and quality journalism, telling the truth to the powers that be in this very dynamic industry and at the same time, championing the cause of the common man.
