Stakeholders in the oil and gas have advised the Federal Government to allow the Nigerian Petroleum Development Company (NPDC) to truly run like an exploration and production company.
They alleged that persistent interference from government in the affairs of the company is affecting its effectiveness and thereby making it to lose focus.
Their advise is coming on the heel of the recent Federal Government attempt to grow crude oil production by empowering the Nigeria Petroleum Development Company NPDC and its subsequent execution of novation agreement on agreement for Oil Mining Leases (OMLs) 60, 61, 62 and 63 has attracted reactions from stakeholders in the oil and gas industry.
The Federation divested its interest in the NNPC, Nigeria Agip Oil Company (NAOC) joint ventures and transferred those interest to the Nigerian Petroleum Development Company (NPDC) in order to grow the company, to become a medium size upstream company that the federation and the NNPC would be proud of.
The agreement marked a significant milestone, with the promise to bring about an amicable end to all litigations, and arbitrations that have over the years inhibited the growth of those assets among the stakeholders.
Samson Makoji, NNPC Agt. group general manager, Group Public Affairs Division, said Mele Kyari, group general manager of NNPC, explained that the agreement signified the transfer of NNPC interest in those assets to the Nigerian Petroleum Development Company (NPDC) which would open up the company to contributing to cash calls and further progress the growth of the partnership.
He added that the novation agreement offered NNPC partners the comfort that the NPDC would deliver on its responsibilities, stressing that the agreement would open a new chapter of business for NPDC and the entire partnership and create a new frontier for revenues for the companies as well as the nation at large.
According industry sources, the agreement would create more activities in the upstream, in addition to the concomitant employment opportunities there from for the people, saying the partnership held a lot of promise for all.
The operators said this is the beginning of greater things to come in the Oil and Gas Industry. They said that the government should be ready to the company delivers on her mandate of exploration as this is a milestone in our quest to grow reserves.
Andy Olotu, a former managing director of Schlumberger, said the NPDC has the manpower, technical competency, but government bureaucracy bogged down the operations of the company. He said they allow the company to operate as limited liability company that would give dividends to the government.
Another director, who did not want his name mentioned, spoke in the same vein with Olotu by stating that an oil servicing company in the country said that the problem with NNPC is the interference from the government, saying the company has one of the best trained Nigerians that can take it a higher level.
Olusola BELLO
