NNPC/MPN JV: 55 Years of Delivering Value to Akwa Ibom State
The Nigeria National Petroleum Corporation/Mobil Producing Nigeria Joint
Venture (NNPC/MPN JV) has operated in Akwa Ibom State for 55 years,
having been granted its first Oil Prospecting License (OPL) in 1961.
Since then, the JV has consistently delivered significant economic value to
Akwa Ibom State and Nigeria.
Current State of the Business
The current decline in oil prices has forced a global cut back in
investments. There has been about 75% reduction in JV profitability
compared to 2015, and JV partner cash call obligations have reached a
cumulative arrears in excess of $1.3bn, and growing, undermining business
sustainability. Additionally, vandalism and community unrest have resulted
in significant production losses. The resultant effects on our business
include: scaled down operations, limited new hire opportunities, reduced
personnel, project deferments and contract renegotiations.
Surviving the Odds
These are trying times, indeed. A mind-set of stakeholder collaboration has
become the irreducible minimum to assure business sustainability for
continued value creation for all. An atmosphere/environment of ramped-up
hostility expressed in threats, abduction of contractors, blockades and
protests is counterproductive. It poses an existential risk to our operations
with grave implications for the revenue base of the state and our capacity
to provide employment and support on-going social investments in our
Mobil Producing Nigeria Unlimited has consistently discharged its corporate
and Joint Venture duties and obligations to country, state and
communities. We, therefore, expect to be treated as partners, as with
anyone with rights and privileges.
We are part of the Community
MPN is made up of people: Over 1,700 citizens living and working in Akwa
Ibom State, mostly indigenes. These individuals and their families are
actively contributing to the economy of the state. We expect all people
including our staff, as law abiding members of the community to be free to
go to work without enduring threats and illegal tolls on the road.
We seek and appreciate the support and collaboration of all stakeholders,
as we work to assure near term business sustainability. Our long term
business outlook and community investments can remain positive only if
all stakeholders genuinely collaborate towards maintaining an atmosphere
that is conducive for business for everyone in Akwa Ibom State.
We invite all to continue to work with us to ensure continued value
delivery and prosperity in Akwa Ibom State.