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The State oil giant, Nigerian National Petroleum Corporation (NNPC), has disclosed that it is expanding its non-oil and gas businesses, deploying technology and automating their processes and operations to reposition the industry for the new normal and ensure sustainability.
They are also working on reducing their cost of crude oil production in order to adapt to the low oil prices triggered by the coronavirus pandemic.
The disclosure was made by the Group Managing Director of NNPC, Mele Kyari, during his address at the Energy Industry Transformation Virtual Summit with the theme, Changing Global Energy Landscape Strategies for Industry Sustainability, on Tuesday, August 25, 2020.Some of these new strategies are necessary for the oil sector which has been badly hit by the coronavirus pandemic.
He said that the onslaught of COVID-19 and the oil price war experienced early this year led to a historical massive demand destruction and supply glut on a global scale, adding that no player in the oil and gas industry was spared of the downturn.
The NNPC boss pointed out that however, with every downturn comes an opportunity to evolve and the industry is taking advantage of this. He said the crisis has accelerated their ability to innovate and leverage on technology to get the businesses to operate optimally and reduce impact.
Kyari, in his statement, said, ‘’To reposition the industry for the new normal and ensure sustainability, we are expanding our non-oil and gas businesses, deploying technology, automating our processes and reducing our cost of production.’’
He stated, ‘’In order to navigate through this global reality, we at the National Oil Company have deployed technology to promote virtual ways of working. We have also improved our efficiency and optimized our operating expenditures.’’
Kyari also disclosed that NNPC is also investing in domestic gas utilization projects like the Ajaokuta-Kaduna-Kano pipeline gas project (AKK, OB3, ELPS), supporting research and innovation as well as fast-tracking energy policy required to expand the horizon of commercial opportunities.
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