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NAPIMS POSITIONS FOR TRANSFORMATION … PRESENTS ITS 100 DAYS AGENDA

As NAPIMS takes a steady march towards transformation, it convened a meeting with Joint Venture Partners to determine the way forward on the effective and efficient management of the Federal Government’s investments in the Upstream Sector of the Oil and Gas Industry. In his opening remarks, The Group Executive Director Exploration and Production, Mr. Philip Chukwu encouraged Operating Companies to speak with sincerity on those issues they believe are mitigating the efficiency of the Business Unit.

Shell Petroleum Development Company, Mobil, Chevron, Total made presentations during which Legacy Costs, Approval Limits, Benchmarking Costs amongst others emerged as issues hampering the smooth operations of the partnership. Reacting to the observations made by the various Companies, the Group Executive Director Exploration and Production, Mr. Philip Chukwu on a lighter note said “By drinking palm wine in the market place, you hear words”. He said a wise man at such forum listens to the discussions, takes in words and goes back to reflect on them and then comes out stronger. He said as far as NAPIMS is concerned, all the issues raised have been taken in good faith and will certainly be addressed.

The GED emphasized the need for each party to add value to the Partnership emphasizing that true partnership is built on trust, respect and effective controls. In another session that hosted NAPIMS management staff and the transformation office, Dr. Okon, Group General Manager, Corporate Planning and Strategy made a presentation on the structure of NAPIMS Post PIB and the Incorporated Joint Venture Model.

Dr. Okon said a transition period will be allowed within which the existing structure will be devolved into the proposed structure Post PIB. NAPIMS during the programme presented its 100 Day Agenda which was based on the following aspirations.

1
Drive Cost Efficiency
2
Review and Prepare for Post PIB Role
3
Streamline and Shorten Contracting Process
4
Address Legacy Operating Costs
5
Establish Data Warehousing and Management System

Drawing from the above aspirations the Management of NAPIMS committed to the following key initiatives to be undertaken within the next 100 days effective March 18, 2010. Reduce Rig Procurement Cost Reduce Operating Cost/Overhead Cost Support the Development of Appropriate Model for NAPIMS Post PIB – define NAPIMS mandate and responsibilities with PSCs

1
Reduce Contracting Cycle – reduce time from tender initiation to contract execution to 4 months (from current 2 years)
2
Address Legacy Operating Costs raised by Joint Venture Partners -- Process and Clear Legacy Costs --Establish Process for Addressing Emergency/Adhoc Expenses
3
Establish Data Warehousing, Management and Retrieval Systems to Enable Collaboration with Joint Venture Partners.

The hallmark of the event was the endorsement of the Charter of the 100 Days Agenda by the GED E&P - Mr. Philip Chukwu, the GGM NAPIMS – Dr. Ayo Balogun, the GM, JV Oil Operations – Mr. Monday Agbuza, the GM, Planning – represented by Mrs

Toju Okanlawon, the GM, Finance and Accounts – Mr. A. Kallamu, the GM, NipeX – Dr. I Ohiaeri, the GM, Services – represented by Mr. U. S. Iwere and the GM, Materials Management – represented by Mrs Stella Ukpong. They pledged on behalf of the Management and Staff of NAPIMS to deliver the expected results.

In his closing remarks the GED, Mr. Philip Chukwu said that the event had been designed to make NAPIMS function better and deliver on its mandate.