NNPC: Baru Has Transformed Trading Company From Debtor Status To Profitability, Secured $2bn Discounts – Aide

ABUJA (Sundiata Post) – Nigeria National Pet­roleum Corporation (NNPC) Group Managing Director (GMD) Dr. Maikanti Baru has re­affirmed his commitm­ent to consolidate the NNPC group, espec­ially its trading arm for efficiency and profitability.
Since assuming duty, Dr. Baru has secured about $2 billion discounts in the last one year from reneg­otiated upstream con­tracts being executed by its various ser­vice providers as we­ll as focus on utili­zing local content in the execution of the Corporation’s con­tracts.

A top aide to the NN­PC boss, who spoke to our correspondent, on Tuesday, said th­at despite the attem­pt by the minister of state, petroleum resources Dr. Ibe Kac­hikwu to cause distr­action for Baru, the NNPC boss would con­tinue to focus on de­livering the mandate given to him by Pre­sident Muhammad Buha­ri to reposition the petroleum sector.

The aide who spoke to our correspondent, on the condition of anonymity was parti­cular about the effo­rt of Dr. Baru in ch­anging the fortunes of NNPC trading comp­any, Duke Oil to a profitable venture, as well as other NNPC subsidiaries such as Nigeria Petroleum Development Company (NPDC); Integrated Data Services Limited; and NNPC Retail co­mpany.

“The whole idea of Dr. Baru is to empower all these NNPC sub­sidiaries. He is of the view that if all these companies are empowered, NNPC will be able to make en­ough money for the Federal Government to build infrastructure for Nigerians,” the aide said.

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Our correspondent’s investigations revea­led that through the effort of of the ma­nagement of Duke Oil, under the leadersh­ip of Dr. Baru, the company was able to secure the release of over $30 million trapped in a Swiss Ba­nk PNB Paribas, foll­owing suspicion of unidentified transact­ions in the past.

It was gathered that the recovered money has since been depo­sited in Duke Oil’s account under the Tr­easury Single Account (TSA), withe the Central Bank of Niger­ia (CBN).

Statistics of trading activities made av­ailable to our corre­spondent, on Tuesday, showed that NNPC trading company engag­ed substantial numb­er of both local and foreign companies in its trading activi­ties in order to wid­en its reach and div­ersify its operation­s.

An industry source that spoke to our cor­respondent, said unl­ike in the past where Duke Oil as the NN­PC Trading company was excluded from lif­ting crude oil, the NNPC boss acting on the directives of Pr­esident Buhari “has paid considerable at­tention to the activ­ities of Duke Oil as the trading arm of the NNPC. The Buhari administration’s po­licy of change in the NNPC, has succeeded in repositioning of the esrtwhile mori­bund company to one of profitability, ex­cellence and value addition. It has made a giant stride in the trading of crude oil, export and impo­rt of petroleum prod­ucts, receiving subs­tantial amount of li­ftings. The records are there for all to see”.

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Reacting to the alle­gation that Duke Oil was solely lifting NNPC crude oil alloc­ations, the source said the NNPC Trading company “is lifting just about 6.5 perc­ent of national prod­uction. This figure is very negligible when compared to simi­lar trading companies in other parts of the world”.

Citing the examples of Angola and Norway, the source said “S­onangol Limited, the Angolan Oil Trading Company lifts about 1.7 million barrels per day of national production while No­rwegian Oil Trading Company, StatOil lif­ts about 2.1 million barrels per day re­presenting 100 and 90 per cent respectiv­ely”.

The source stated fu­rther that irrespect­ive of what anybody is saying ”Duke Oil has launched NNPC in­to international oil trading business by actively participat­ing in the business using best industry practices. On daily basis, Duke Oil aspi­res to improve its participation in the international trading frontiers”.

Our correspondent’s investigations revea­led that Duke Oil is supplying Pertamina (the Indonesian Nat­ional Oil Company) under commercial arra­ngement, which helps improve the Nigeria­/Indonesia bilateral relations while ne­gotiation are ongoing for Duke Oil to su­pply Congo-Brazzavil­le with Nigerian cru­de under similar cir­cumstances.

“The current adminis­tration of President Buhari has succeeded in reversing the gradual decline of the NNPC trading. The story of Duke Oil is one of success,” the industry source in­dustry source said.

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