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From Uche Usim, Abuja
The Nigerian National Petroleum Company Limited (NNPCL) is taking pragmatic steps to crash overhead costs, boosting oil production and generally running a leaner and smarter outfit.
Part of the moves to maintain optimal performance and ensure that its over 200 million stakeholders get the right dividends was to merge some of its subsidiaries for better operability and profitability.
To this end, the former refining and petrochemical directorate was merged with downstream for better synergy accompanied with an improved cost effective structure.
Sources familiar with the development told Daily Sun that the three refineries are currently undergoing rehabilitation and are managed as rehabilitation projects supervised by a refinery coordinator.
“Once completed, the plan is to hand the assets over to reputable third parties with requisite experience to operate and maintain them.
“To streamline our shipping operations; three entities; NIDAS, NIKOMA and Marine logistics were merged to become NNPC shipping company.
“The most notable merger of all is that of the Integrated Data Services limited, NNPC oil field services, and Frontier exploration to become NNPC Services Limited (EnSERV) with focus on exploration, seismic data management, and general Oilfield services.
“They have recorded great feats with exploration activities in Kolmani in Gombe state, Ebenyi in Nasarawa and Wadi B in Maiduguri in just one year”, the source explained.
He added that there were 25 subsidiaries in NNPC limited prior to the reorganization.
“All unviable Special Business Units (SBUs) were shut down in a bid to reduce overhead cost and optimize revenue. Businesses with duplicated functions were merged for economies of scale and optimization. New Units were created like new nnergies.
“This led to the reduction in the number of subsidiaries from 25 to 21”, he added.
The source added that the national oil company remains determined to deepen transparency, operate an open-door policy, and dismantle bureaucratic bottlenecks, all to ensure Nigerians get sufficient value for its activities.
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