Govt may unbundle NNPC into 30 firms next week

KachikwuIndications emerged yesterday that the Federal Government may next week unbundle the Nigerian National Petroleum Corporation (NNPC) into 30 competitive revenue-generating subsidiaries.

Speaking yesterday in Abuja at the 2016 Oloibiri Lecture Series and Energy Forum organised by the Society of Petroleum Engineers (SPE) Nigeria Council, the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, named upstream, downstream, midstream, refining while others that are revenue-generating organisations would be grouped into one company with each of them having independent management that reports to the minister.

In an unprecedented move, Kachikwu also hinted government would also abolish the office of the group executive directors who are presently manning each directorate of the NNPC.

“What is more important is that we are also unbundling the subsets of these companies to close to about 30 independent companies with their own managing directors. So, titles like the group executive directors which we are used to in the last 30 years will disappear. There will be chief executive officers in their place,” he said.

Kachikwu submitted that every office holder in the nation’s national oil company must be made to work for their titles, saying, “people have got to take responsibilities for the titles. They have to mean something; they are not administrative roles. So, at the end of the day, a CEO of an upstream company must deliver upstream results and we are very focused on that and along those chains.”

He assured that the radical remodeling of the NNPC would yield tangible results within a short period of time with its concomitant competition geared at promoting efficiency within the system.

While defending the diplomatic shuttle President Muhammadu Buhari made to Qatar and Saudi Arabia on how to shore up the price of crude oil in the international market, Kachikwu stressed that both Saudi Arabia and Russia are now willing to talk. He also hinted that OPEC members and non-members were meeting on March 20, 2016 with a view to pushing the price up to about $50 by the end of the year.

“Hopefully, if the meeting that we are scheduling to happen in Russia between the OPEC and non-OPEC members happen about the 20th of March, we should see some dramatic movements. We may not likely see the prices of many years ago. I think we are very humbled today to accept that if we hit the price of $50, we will be celebrating and that is the target that we have.”

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