The Nigerian National Petroleum Corporation (NNPC) says it realised between five per cent and 30 per cent discounts on existing contracts after several renegotiations.
The corporation explained that this arrangement has led to substantial savings for the national oil firm, which it said, has helped to improve its overall performance.
Its Group Managing Director Maikanti Baru disclosed this during his end-of-year message to workers of the firm in Abuja.
But he did not provide details of the renegotiated contracts and the amount saved by the corporation as a result of the discounts.
Maikanti noted in a statement that over the year, the NNPC had adopted strategies to ensure the corporation’s operational profitability.
He cited the renegotiation of all existing contracts which had enabled his management team to achieve substantial value realisation of between five and 30 per cent discounts.
“This singular effort alone translated to substantial cost savings in favour of the NNPC,” Baru was quoted to have said.
The NNPC boss reiterated that the national oil firm had completed negotiations with its joint venture partners towards the resolution of cash call funding challenges through payments of arrears that were owed the partners.
Baru said this was achieved by developing a clear payment plan as well as the pursuit of an alternative funding strategy, adding that arrears of up to December, 2015 had been fully reconciled and that repayments plan had been settled.
The GMD also vowed to continue to find sustainable solution to the challenge posed by insurgency in the Niger Delta.
Baru attributed the recent increase in the country’s oil and gas reserves to 37 billion barrels and 192 trillion cubic feet, respectively to the relative peace in the Niger Delta.