The Managing Director, National Engineering and Technical Company (NETCO), a subsidiary of the Nigerian National Petroleum Corporation Ltd. (NNPC), Mr Johnson Awoyomi, has says cost optimisation was the driving force behind NNPC’S profitablity.
Awoyomi,who disclosed this during an interactive session with young engineers at the ongoing Nigerian Association of Petroleum Explorationists (NAPE) 2021 Conference in Lagos,said that the enactment of the Petroleum Industry Act ( PIA) was a game changer for the petroleum sector with the aim of enhancing commercial, profit and sustainability of the NNPC and its subsidiaries.
He added: “In 2020, when others were facing losses, NNPC was able to break a 44-year jinx by declaring a N287billion profit.
“What the management of the NNPC did was to improve cost effectiveness by ensuring that operating cost was reduced while also improving profit accruing to the National Oil Company
“These huge profits were made as a result of the NNPC’s top management deployment of Cost Optimisation Initiatives.”
According to him,cost optimisation was very key in the face of challenges facing the industry caused by the COVID-19 pandemic and global energy transition.
He added that the was targeting to reduce the contracting cycle from 18 months to six months and was working to reduce the Unit Operating Cost of crude oil production to $10 per barrel.
