The Nigerian National Petroleum Corporation has said it realised between five per cent and 30 per cent discounts on existing contracts after several renegotiations.

According to the corporation, this arrangement has led to substantial savings for the national oil firm, thus helping to improve its overall performance.

The Group Managing Director, NNPC, Dr. Maikanti Baru, disclosed this during his end-of-year message to workers of the firm in Abuja.

He, however, did not provide details of the renegotiated contracts and the amount saved by the corporation as a result of the discounts.

A statement from the corporation reported him as saying that over the year, 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 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.

He said the ultimate objective of the recently signed off agreements between the NNPC and the JV partners was to enable the corporation to transit to an incorporated joint venture model for all the current joint ventures.

The GMD also vowed to continue to find sustainable solution to the challenge posed by insurgency in the Niger Delta.

He said the corporation had created security management platforms that would enable it to identify and evaluate risks, develop and superintend implementation of investigations, aggregate and deploy necessary resources to guarantee peaceful business environment in the region.

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.

He further noted that the NNPC had commenced the implementation of its 12-key business focus areas to enhance the corporation’s performance, adding that arrangements had been completed to put in place structures that would enable smooth implementation of new business models for its companies nationwide.

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