How NNPCL is cutting cost with merger of business units
In a bid to optimise and reduce overhead costs, some companies under the management of the Nigerian National Petroleum Company Limited (NNPCL) have been merged and others were optimised for better operability and profitability. Available facts have emerged from reliable sources conversant with NNPCL and its operations that the former refining and petrochemical directorate was […]
Mele Kyari
In a bid to optimise and reduce overhead costs, some companies under the management of the Nigerian National Petroleum Company Limited (NNPCL) have been merged and others were optimised for better operability and profitability.
Available facts have emerged from reliable sources conversant with NNPCL and its operations that the former refining and petrochemical directorate was merged with downstream for better alignment with an improved cost effective structure.
“The 3 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 a reputable 3rd party with experience to operate and maintain them,” the source who doesn’t want to be mentioned said.
“To streamline our shipping operations; 3 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 further stated.
It was learnt that all unviable Strategic Business Units were shut down in a bid to reduce overhead cost and optimise revenue.
“Businesses with duplicated functions were merged for economies of scale and optimisation. New Units were created like New Energies. This led to the reduction in the number of subsidiaries from 25 to 21,” the source further revealed.