NNPC Pockets 30% Discount From Contracts Re-negotiations

By Ikenga Chronicles December 27, 2016

The Nigerian National Petroleum Corporation(NNPC) on Sunday said it secured about five per cent and 30 per cent discounts on contracts it re-negotiated on.

This was disclosed by the Group Managing Director, NNPC, Dr. Maikanti Baru, during his end-of-year message to workers of the firm in Abuja. According to him, the corporation has made substantial savings which has also improved its overall performance.

While details of the renegotiated contracts and the amount saved by the corporation as a result of the discounts was not given, Baru said  the NNPC had adopted strategies to ensure the corporation’s operational profitability, citing 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.

He stressed that negotiations with  its joint venture partners towards the resolution of cash call funding challenges through payments of arrears that were owed the partners had been finalized.

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.

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