Integrated Data Services Limited (IDSL), has said that the current high Unit Operating Cost (UOC) of production in the parent company, the Nigerian National Petroleum Corporation (NNPC) could be reduced by deploying accurate industry data.
The managing director of IDSL, Mr Ayebateke Bariwei, who spoke during a webinar by the NNPC subsidiary, stressed that the problem could be tackled by the massive use of accurate information.
The webinar tagged “Leveraging Data Democratisation to Improve Asset Management Efficiency” was organized by IDSL to brainstorm on the recent directives by the NNPC group managing director Mr Mele Kyari, on the need to reduce the current high cost of crude oil production in the country.
According to the IDSL boss, the IDSL data management process involves data acquisition, data processing, storage and management, and its application could be in the upstream, midstream or downstream sectors of the industry.
Ayebateke regretted that the impact of the COVID-19 pandemic, global fluctuating oil price and high operating costs had led to potential losers and winners, noting that depending on decisions taken to ameliorate the impact, the oil and gas industry is already on the losing end.
He said IDSL had keyed into the GMD’s directive in June, instructing the emplacement of industry-wide cost containment measures, including aggressive capital allocation to prioritise low cost oil production, putting measures in place to ensure cost discipline, plus renegotiating down contracts.
Others measures adopted include resetting cost structures, re-evaluating capital expenditure and allocation as well as achieving $10 production cost without jeopardising growth.
According to him, the GMD had called for aggressive execution of initiatives aimed at conserving cash and diversification of portfolio to non-oil businesses to cushion the effect of future crash in crude oil price.
Kyari, he stressed, insisting on addressing perennial issues associated with operational inefficiency, adoption of technology to enhance productivity and reduction of waste.
To achieve operational excellence in the oil industry, the corporation, he said had also embraced “TAPE”, which is an acronym for Transparency, Accountability and Performance Excellence.
The IDSL MD said achieving operational efficiency would involve restructuring data acquisition and management strategies, democratising right data to stakeholders for informed business decisions and leveraging on digital technologies and analytics to derive actionable insights from asset data.
By Chibisi Ohakah, Abuja
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