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  •  The Minister of State Petroleum Resources Chief Timipre Sylva has said that the desire to surmount the challenges bedeviling the oil and gas sector led to the enactment of the Petroleum Industry Act PIA Sylva spoke at the Nigeria International Economic Partnership Forum in New York with the theme Nigeria s Oil and Gas Sector Reforms Results and the Road Ahead Sylva in a statement on Thursday by his Senior Adviser Media and Communications Horatius Egua said Federal Government s desire to inject life into the sector characterised by fiscal and operational challenges led to making proactive reforms a priority The minister said the enactment of the PIA on Aug 16 2021 was a watershed moment for the nation the industry and all stakeholders He said it signalled the beginning of a more conducive environment for investment output industrial and national growth while also addressing legitimate grievances of resource host communities most impacted by resource extraction operations He said the PIA 2021 at full implementation would create massive investment opportunities improve transparency attract investors and reposition the Nigerian Oil and Gas industry for sustainable growth The minister said the PIA 2021 had established a legal governance regulatory and fiscal framework for the petroleum industry host community development and associated matters It provides fiscal certainty improves regulations and incentives for investment including up to ten year tax vacations while guaranteeing better take for both government and private investors thereby balancing rewards with risk The PIA has set the foundation for a sustainable growth in the sector with the establishment of the Nigerian National Petroleum Company Limited NNPCL Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA and Nigerian Upstream Petroleum Regulatory Commission NUPRC he said This administration remains committed to ensure full implementation of these conceived reforms to foster efficiency and attract investments and development of supporting infrastructure along the oil and gas value chain as embedded in our policy aspirations for the sector The government has taken the necessary steps to sustainably implement and operationalize the PIA 2021 within the timelines stipulated in the Act he said To this end he said the government had inaugurated the steering committee which he chaired responsible for PIA implementation immediately after the PIA was signed into law Reflecting on the theme of the conference Nigeria s Oil and Gas Sector Reforms Results and the Road Ahead Sylva said the theme resonated the aspirations and commitment of President Buhari s government to reform the sector NewsSourceCredit NAN
    PIA to unlock investments in Nigeria’s oil, gas sector – Sylva
     The Minister of State Petroleum Resources Chief Timipre Sylva has said that the desire to surmount the challenges bedeviling the oil and gas sector led to the enactment of the Petroleum Industry Act PIA Sylva spoke at the Nigeria International Economic Partnership Forum in New York with the theme Nigeria s Oil and Gas Sector Reforms Results and the Road Ahead Sylva in a statement on Thursday by his Senior Adviser Media and Communications Horatius Egua said Federal Government s desire to inject life into the sector characterised by fiscal and operational challenges led to making proactive reforms a priority The minister said the enactment of the PIA on Aug 16 2021 was a watershed moment for the nation the industry and all stakeholders He said it signalled the beginning of a more conducive environment for investment output industrial and national growth while also addressing legitimate grievances of resource host communities most impacted by resource extraction operations He said the PIA 2021 at full implementation would create massive investment opportunities improve transparency attract investors and reposition the Nigerian Oil and Gas industry for sustainable growth The minister said the PIA 2021 had established a legal governance regulatory and fiscal framework for the petroleum industry host community development and associated matters It provides fiscal certainty improves regulations and incentives for investment including up to ten year tax vacations while guaranteeing better take for both government and private investors thereby balancing rewards with risk The PIA has set the foundation for a sustainable growth in the sector with the establishment of the Nigerian National Petroleum Company Limited NNPCL Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA and Nigerian Upstream Petroleum Regulatory Commission NUPRC he said This administration remains committed to ensure full implementation of these conceived reforms to foster efficiency and attract investments and development of supporting infrastructure along the oil and gas value chain as embedded in our policy aspirations for the sector The government has taken the necessary steps to sustainably implement and operationalize the PIA 2021 within the timelines stipulated in the Act he said To this end he said the government had inaugurated the steering committee which he chaired responsible for PIA implementation immediately after the PIA was signed into law Reflecting on the theme of the conference Nigeria s Oil and Gas Sector Reforms Results and the Road Ahead Sylva said the theme resonated the aspirations and commitment of President Buhari s government to reform the sector NewsSourceCredit NAN
    PIA to unlock investments in Nigeria’s oil, gas sector – Sylva
    General news2 weeks ago

    PIA to unlock investments in Nigeria’s oil, gas sector – Sylva

    The Minister of State Petroleum Resources Chief Timipre Sylva, has said that the desire to surmount the challenges bedeviling the oil and gas sector led to the enactment of the Petroleum Industry Act (PIA).

    Sylva spoke at the Nigeria International Economic Partnership Forum, in New York, with the theme: “Nigeria’s Oil and Gas Sector: Reforms, Results and the Road Ahead”.

    Sylva, in a statement on Thursday by his Senior Adviser (Media and Communications), Horatius Egua said Federal Government’s desire to inject life into the sector characterised by fiscal and operational challenges led to making proactive reforms a priority.

    The minister said the enactment of the PIA on Aug. 16, 2021 was a “watershed moment for the nation, the industry and all stakeholders.

    He said it signalled the beginning of a more conducive environment for investment, output, industrial and national growth, while also addressing legitimate grievances of resource host-communities most impacted by resource extraction operations.

    He said the PIA 2021, at full implementation, would create massive investment opportunities, improve transparency, attract investors, and reposition the Nigerian Oil and Gas industry for sustainable growth.

    The minister said the PIA 2021 had established a legal, governance, regulatory, and fiscal framework for the petroleum industry, host community development, and associated matters.

    “It provides fiscal certainty, improves regulations and incentives for investment, including up to ten-year tax vacations, while guaranteeing better take for both government and private investors, thereby balancing rewards with risk.

    “The PIA has set the foundation for a sustainable growth in the sector with the establishment of the Nigerian National Petroleum Company Limited (NNPCL), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerian Upstream Petroleum Regulatory Commission (NUPRC),” he said.

    “This administration remains committed to ensure full implementation of these conceived reforms to foster efficiency and attract investments and development of supporting infrastructure along the oil and gas value chain as embedded in our policy aspirations for the sector.

    “The government has taken the necessary steps to sustainably implement and operationalize the PIA 2021 within the timelines stipulated in the Act,” he said.

    To this end, he said the government had inaugurated the steering committee, which he chaired, responsible for PIA implementation immediately after the PIA was signed into law.

    Reflecting on the theme of the conference “Nigeria’s Oil and Gas Sector: Reforms, Results and the Road Ahead”, Sylva said the theme resonated the aspirations and commitment of President Buhari’s government to reform the sector.


    NewsSourceCredit: NAN

  •  Chief Timipre Sylva Minister of State for Petroleum Resources says there are about 265 illegal refineries in the Shell Petroleum Development Company SPDC corridor alone as Nigeria continues to grapple with oil theft The News Agency of Nigeria reports that Sylva spoke at the 60th Anniversary of the Oil Producers Trade Section OPTS of the Lagos Chamber of Commerce and Industry LCCI on Thursday in Lagos The minister represented by Mr Kamaru Busari Acting Permanent Secretary Ministry of Petroleum Resources said vandalism and oil theft had resulted in Nigeria producing less than one million barrels of crude oil per day Sylva said the country s inability to meet its Organisation of the Petroleum Exporting Countries OPEC quota had deprived it of the much needed oil revenue when oil prices were very high in the international market He said nevertheless the government was engaging host communities security agencies and deploying technology to address the issue in order to boost investors confidence in the sector On his part Malam Mele Kyari Group Chief Executive Officer Nigerian National Petroleum Company Ltd NNPCL said the company was not unmindful of the current challenges particularly security in the operational areas and cash call arrears settlement Kyari represented by Mr Dapo Segun Deputy General Manager Treasury NNPCL however maintained that the company was resilient and would work with other stakeholders to overcome the security challenges He said We have deployed creative solutions to tackle security challenges in the operational areas Technological intervention for both monitoring and prompt intervention would also be set up The tackling of the menace is a top priority for NNPCL Also our new governance framework provides us autonomy and opportunity for self accounting hence cash call settlement including arrears would be settled and handled promptly going forward Earlier in his address of welcome Mr Rick Kennedy Chairman OPTS said OPTS had made significant contributions to the development of the Nigerian oil and gas industry over the past 60 years Kennedy represented by Mr Osagie Okunbor Vice Chairman OPTS said OPTS members had demonstrated resilience and commitment in the face of economic security environmental and funding challenges He said We have continued to make significant contributions to Nigeria s development As a group OPTS member companies account about 90 per cent of Nigeria oil production and contributes significantly to the domestic and export gas production and supply Over the last decade OPTS member companies accounted for 40 60 per cent of government revenue and 85 to 95 per cent of export earnings OPTS member companies are also proud to have paid tens of billions of dollars in taxes levies royalties rents and license fees to the Nigerian government Kennedy who is also the Managing Director Chevron Africa Business Unit said the OPTS companies had also created over 600 000 direct and indirect jobs for Nigerians Also Mr Bunmi Toyobo Executive Director OPTS thanked the 29 companies who were members of the OPTS for their contributions to its achievements in the past 60 years This celebration is to demonstrate our abiding faith in Nigeria as a group and belief in the boundless growth potential of our country given the enabling environment he said NewsSourceCredit NAN
    265 illegal refineries in SPDC corridor – Sylva
     Chief Timipre Sylva Minister of State for Petroleum Resources says there are about 265 illegal refineries in the Shell Petroleum Development Company SPDC corridor alone as Nigeria continues to grapple with oil theft The News Agency of Nigeria reports that Sylva spoke at the 60th Anniversary of the Oil Producers Trade Section OPTS of the Lagos Chamber of Commerce and Industry LCCI on Thursday in Lagos The minister represented by Mr Kamaru Busari Acting Permanent Secretary Ministry of Petroleum Resources said vandalism and oil theft had resulted in Nigeria producing less than one million barrels of crude oil per day Sylva said the country s inability to meet its Organisation of the Petroleum Exporting Countries OPEC quota had deprived it of the much needed oil revenue when oil prices were very high in the international market He said nevertheless the government was engaging host communities security agencies and deploying technology to address the issue in order to boost investors confidence in the sector On his part Malam Mele Kyari Group Chief Executive Officer Nigerian National Petroleum Company Ltd NNPCL said the company was not unmindful of the current challenges particularly security in the operational areas and cash call arrears settlement Kyari represented by Mr Dapo Segun Deputy General Manager Treasury NNPCL however maintained that the company was resilient and would work with other stakeholders to overcome the security challenges He said We have deployed creative solutions to tackle security challenges in the operational areas Technological intervention for both monitoring and prompt intervention would also be set up The tackling of the menace is a top priority for NNPCL Also our new governance framework provides us autonomy and opportunity for self accounting hence cash call settlement including arrears would be settled and handled promptly going forward Earlier in his address of welcome Mr Rick Kennedy Chairman OPTS said OPTS had made significant contributions to the development of the Nigerian oil and gas industry over the past 60 years Kennedy represented by Mr Osagie Okunbor Vice Chairman OPTS said OPTS members had demonstrated resilience and commitment in the face of economic security environmental and funding challenges He said We have continued to make significant contributions to Nigeria s development As a group OPTS member companies account about 90 per cent of Nigeria oil production and contributes significantly to the domestic and export gas production and supply Over the last decade OPTS member companies accounted for 40 60 per cent of government revenue and 85 to 95 per cent of export earnings OPTS member companies are also proud to have paid tens of billions of dollars in taxes levies royalties rents and license fees to the Nigerian government Kennedy who is also the Managing Director Chevron Africa Business Unit said the OPTS companies had also created over 600 000 direct and indirect jobs for Nigerians Also Mr Bunmi Toyobo Executive Director OPTS thanked the 29 companies who were members of the OPTS for their contributions to its achievements in the past 60 years This celebration is to demonstrate our abiding faith in Nigeria as a group and belief in the boundless growth potential of our country given the enabling environment he said NewsSourceCredit NAN
    265 illegal refineries in SPDC corridor – Sylva
    General news2 weeks ago

    265 illegal refineries in SPDC corridor – Sylva

    Chief Timipre Sylva, Minister of State for Petroleum Resources, says there are about 265 illegal refineries in the Shell Petroleum Development Company (SPDC) corridor alone as Nigeria continues to grapple with oil theft.

    The News Agency of Nigeria reports that Sylva spoke at the 60th Anniversary of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI) on Thursday in Lagos.

    The minister, represented by Mr Kamaru Busari, Acting Permanent Secretary, Ministry of Petroleum Resources, said vandalism and oil theft had resulted in Nigeria producing less than one million barrels of crude oil per day.

    Sylva said the country’s inability to meet its Organisation of the Petroleum Exporting Countries (OPEC) quota had deprived it of the much needed oil revenue when oil prices were very high in the international market.

    He said, nevertheless, the government was engaging host communities, security agencies and deploying technology to address the issue in order to boost investors’ confidence in the sector.

    On his part, Malam Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company Ltd. (NNPCL), said the company was not unmindful of the current challenges, particularly security in the operational areas and cash call arrears settlement.

    Kyari, represented by Mr Dapo Segun, Deputy General Manager, Treasury, NNPCL, however,  maintained that the company was resilient and would work with other stakeholders to overcome the security challenges.

    He said: “We have deployed creative solutions to tackle security challenges in the operational areas.

    “Technological intervention for both monitoring and prompt intervention would also be set up.

    The tackling of the menace is a top priority for NNPCL.

    “Also, our new governance framework provides us autonomy and opportunity for self-accounting hence cash-call settlement including arrears would be settled and handled promptly going forward.

    ” Earlier in his address of welcome, Mr Rick Kennedy, Chairman OPTS, said OPTS had made significant contributions to the development of the Nigerian oil and gas industry over the past 60 years.

    Kennedy, represented by Mr Osagie Okunbor, Vice Chairman, OPTS, said OPTS members had demonstrated resilience and commitment in the face of economic, security, environmental and funding challenges.

    He said: “We have continued to make significant contributions to Nigeria’s development.

    “As a group, OPTS member companies account about 90 per cent of Nigeria oil production and contributes significantly to the domestic and export gas production and supply.

    “Over the last decade, OPTS member companies accounted for 40-60 per cent of government revenue and 85 to 95 per cent of export earnings.

    “OPTS member companies are also proud to have paid tens of billions of dollars in taxes, levies, royalties, rents, and license fees to the Nigerian government.

    ” Kennedy, who is also the Managing Director, Chevron -Africa Business Unit, said the OPTS companies had also created over 600,000 direct and indirect jobs for Nigerians.

    Also, Mr Bunmi Toyobo, Executive Director,OPTS, thanked the 29 companies who were members of the OPTS for their contributions to its achievements in the past 60 years.

    “This celebration is to demonstrate our abiding faith in Nigeria as a group and belief in the boundless growth potential of our country, given the enabling environment,” he said.


    NewsSourceCredit: NAN

  •  The Nigeria Security and Civil Defence Corps NSCDC has urged the Nigerian National Petroleum Company Limited NNPCL to waive its charges for the testing suspected adulterated petroleum products NSCDC Commandant General CG Ahmed Audi requested for the waiver while hosting members of a Presidential Task Force Operation White OPW at the Corps Headquarters on Wednesday in Abuja According to Audi the Corps paid between N80 000 and N100 000 to NNPCL for laboratory testing and analysis of suspected adulterated petroleum products it apprehended The CG further sought the support of NNPCL in the acquisition of working tools and equipment to enable the NSCDC diligently pursue its mandate He expressed concern over incessant vandalism of oil facilities and attack on security personnel by oil thieves and smugglers sabotaging the country s economy The CG therefore called for joint efforts to protect the oil sector which drives Nigeria s economy from economic saboteurs oil thieves illegal bunkerers and pipeline vandals He appreciated the Taskforce for the visit and assured of continuous collaboration in curbing and prosecuting those involved in petroleum related crimes Audi commended the Federal Government s commitment to ending oil theft in the country and sought for the support of all well meaning Nigerians Earlier OPW Team Lead Mr Tijjani Mohammed said that the team was set up to curtail hoarding diversion and smuggling of petroleum products He said that the partnership between NSCDC and the team will help to effectively protect all states including the FCT Mohammed decried the unrepentant nature of smugglers bent on sabotaging Federal Government efforts to nip illegal oil bunkering in the bud He said that OPW will not relent in its efforts to curtail all sharp practices until sanity was enthroned in the oil sector He said that the team s seven boarder points will require the services of NSCDC Intelligence Squard and legal support for prosecution of suspects Mohammed said that the Taskforce was determined to share intelligence reports with the Corps and other sister agencies NewsSourceCredit NAN
    NSCDC urges NNPC to waive adulterated petrol testing fee
     The Nigeria Security and Civil Defence Corps NSCDC has urged the Nigerian National Petroleum Company Limited NNPCL to waive its charges for the testing suspected adulterated petroleum products NSCDC Commandant General CG Ahmed Audi requested for the waiver while hosting members of a Presidential Task Force Operation White OPW at the Corps Headquarters on Wednesday in Abuja According to Audi the Corps paid between N80 000 and N100 000 to NNPCL for laboratory testing and analysis of suspected adulterated petroleum products it apprehended The CG further sought the support of NNPCL in the acquisition of working tools and equipment to enable the NSCDC diligently pursue its mandate He expressed concern over incessant vandalism of oil facilities and attack on security personnel by oil thieves and smugglers sabotaging the country s economy The CG therefore called for joint efforts to protect the oil sector which drives Nigeria s economy from economic saboteurs oil thieves illegal bunkerers and pipeline vandals He appreciated the Taskforce for the visit and assured of continuous collaboration in curbing and prosecuting those involved in petroleum related crimes Audi commended the Federal Government s commitment to ending oil theft in the country and sought for the support of all well meaning Nigerians Earlier OPW Team Lead Mr Tijjani Mohammed said that the team was set up to curtail hoarding diversion and smuggling of petroleum products He said that the partnership between NSCDC and the team will help to effectively protect all states including the FCT Mohammed decried the unrepentant nature of smugglers bent on sabotaging Federal Government efforts to nip illegal oil bunkering in the bud He said that OPW will not relent in its efforts to curtail all sharp practices until sanity was enthroned in the oil sector He said that the team s seven boarder points will require the services of NSCDC Intelligence Squard and legal support for prosecution of suspects Mohammed said that the Taskforce was determined to share intelligence reports with the Corps and other sister agencies NewsSourceCredit NAN
    NSCDC urges NNPC to waive adulterated petrol testing fee
    Defence/Security3 weeks ago

    NSCDC urges NNPC to waive adulterated petrol testing fee

    The Nigeria Security and Civil Defence Corps (NSCDC) has urged the Nigerian National Petroleum Company Limited (NNPCL) to waive its charges for the testing suspected adulterated petroleum products.

    NSCDC Commandant General (CG), Ahmed Audi, requested for the waiver while hosting members of a Presidential Task Force, Operation White (OPW) at the Corps’ Headquarters on Wednesday in Abuja.

    According to Audi, the Corps paid between N80,000 and N100,000 to NNPCL for laboratory testing and analysis of suspected adulterated petroleum products it apprehended.

    The CG further sought the support of NNPCL in the acquisition of working tools and equipment to enable the NSCDC diligently pursue its mandate.

    He expressed concern over incessant vandalism of oil facilities and attack on security personnel by oil thieves and smugglers sabotaging the country’s economy.

    The CG, therefore, called for joint efforts to protect the oil sector which drives Nigeria’s economy from economic saboteurs, oil thieves, illegal bunkerers and pipeline vandals.

    He appreciated the Taskforce for the visit and assured of continuous collaboration in curbing and prosecuting those involved in petroleum related crimes.

    Audi commended the Federal Government’s commitment to ending oil theft in the country, and sought for the support of all well-meaning Nigerians.

    Earlier, OPW Team Lead, Mr Tijjani Mohammed said that the team was set up to curtail hoarding, diversion and smuggling of petroleum products.

    He said that the partnership between NSCDC and the team will help to effectively protect all states, including the FCT.

    Mohammed decried the unrepentant nature of smugglers bent on sabotaging Federal Government efforts to nip illegal oil bunkering in the bud.

    He said that OPW will not relent in its efforts to curtail all sharp practices until sanity was enthroned in the oil sector.

    He said that the team’s seven boarder points will require the services of NSCDC Intelligence Squard and legal support for prosecution of suspects.

    Mohammed said that the Taskforce was determined to share intelligence reports with the Corps and other sister agencies.


    NewsSourceCredit: NAN

  •  The Group Chief Executive Officer of the Nigeria National Petroleum Corporation Limited NNPCL Mele Kyari has again raised the alarm over the involvement of communities and religious groups in theft of petroleum products in the country Kyari stated this at the weekly Ministerial Media Briefing organized by the Presidential Media Team led by Mr Femi Adesina the President s Special Adviser on Media and Publicity on Tuesday in Abuja According to him churches mosques security agencies as well as communities where pipelines pass through were involved in pipeline vandalism and theft of petroleum products He said so far the NNPC in conjunction with security agencies had destroyed 959 metal tanks for storage purposes 737 ovens 452 dug out pits 355 cooking pots and 179 wooden boats between April and August this year He added that the security officials also recovered 207 pumping machines 12 welding machines two power generators and two filling machines Kyari said 11 vessels 30 speed boats 37 trucks and cars were impounded while 122 suspects were arrested in connection with various cases of theft of petroleum products He said As you may also be aware because of the very unfortunate acts of vandals along our major pipelines from Atlas Cove all the way to Ibadan and all others connecting all the 37 depots that we have across the country You know none of them can take delivery of products today Kyari said And the reason is very simple For some of the lines for instance from Warri to Benin we haven t operated that line for 15 years Every molecule of product that we put get lost And of course you remember the tragic fire incident very close to Warri close to Sapele that killed so many people So we had to shut it down and as we speak the level of losses that we have on our product pipeline and I m sure you may have seen it and I ll invite you at the right time so we can take a look at it jointly He also recalled the fire outbreak happened in the Lagos area adding in one of our pipelines we discovered that some of the pipelines were actually connected to individuals homes And not only that and with all sensitivity to our religious beliefs you know some of the pipelines and some of the products that we found were actually in churches and in mosques That means that everybody is involved There is no way you will take products bring in trucks in populated neighborhoods load it and leave without everybody else knowing about it That everybody includes members of the community members of the religious leadership and also and most likely government officials of all natures including security agencies personnel They are everywhere And I ve seen this even in the Niger Delta There s no way you would deliver a volume and lose up to 30 per cent and you will continue to put that products in this line He however revealed the NNPCL had recovered 35 8 million litres of the stolen crude oil 22 million litres of diesel 0 15 litres of petrol and 0 76 million litres of kerosene NewsSourceCredit NAN
    Oil Theft: NNPCL raises the alarm over involvement of communities, religious groups
     The Group Chief Executive Officer of the Nigeria National Petroleum Corporation Limited NNPCL Mele Kyari has again raised the alarm over the involvement of communities and religious groups in theft of petroleum products in the country Kyari stated this at the weekly Ministerial Media Briefing organized by the Presidential Media Team led by Mr Femi Adesina the President s Special Adviser on Media and Publicity on Tuesday in Abuja According to him churches mosques security agencies as well as communities where pipelines pass through were involved in pipeline vandalism and theft of petroleum products He said so far the NNPC in conjunction with security agencies had destroyed 959 metal tanks for storage purposes 737 ovens 452 dug out pits 355 cooking pots and 179 wooden boats between April and August this year He added that the security officials also recovered 207 pumping machines 12 welding machines two power generators and two filling machines Kyari said 11 vessels 30 speed boats 37 trucks and cars were impounded while 122 suspects were arrested in connection with various cases of theft of petroleum products He said As you may also be aware because of the very unfortunate acts of vandals along our major pipelines from Atlas Cove all the way to Ibadan and all others connecting all the 37 depots that we have across the country You know none of them can take delivery of products today Kyari said And the reason is very simple For some of the lines for instance from Warri to Benin we haven t operated that line for 15 years Every molecule of product that we put get lost And of course you remember the tragic fire incident very close to Warri close to Sapele that killed so many people So we had to shut it down and as we speak the level of losses that we have on our product pipeline and I m sure you may have seen it and I ll invite you at the right time so we can take a look at it jointly He also recalled the fire outbreak happened in the Lagos area adding in one of our pipelines we discovered that some of the pipelines were actually connected to individuals homes And not only that and with all sensitivity to our religious beliefs you know some of the pipelines and some of the products that we found were actually in churches and in mosques That means that everybody is involved There is no way you will take products bring in trucks in populated neighborhoods load it and leave without everybody else knowing about it That everybody includes members of the community members of the religious leadership and also and most likely government officials of all natures including security agencies personnel They are everywhere And I ve seen this even in the Niger Delta There s no way you would deliver a volume and lose up to 30 per cent and you will continue to put that products in this line He however revealed the NNPCL had recovered 35 8 million litres of the stolen crude oil 22 million litres of diesel 0 15 litres of petrol and 0 76 million litres of kerosene NewsSourceCredit NAN
    Oil Theft: NNPCL raises the alarm over involvement of communities, religious groups
    General news1 month ago

    Oil Theft: NNPCL raises the alarm over involvement of communities, religious groups

    The Group Chief Executive Officer of the Nigeria National Petroleum Corporation Limited (NNPCL), Mele Kyari, has again raised the alarm over the involvement of communities and religious groups in theft of petroleum products in the country.

    Kyari stated this at the weekly Ministerial Media Briefing organized by the Presidential Media Team led by Mr Femi Adesina, the President’s Special Adviser on Media and Publicity,  on Tuesday in Abuja.

    According to him, churches, mosques, security agencies as well as communities where pipelines pass through were involved in pipeline vandalism and theft of petroleum products.

    He said so far, the NNPC, in conjunction with security agencies, had destroyed 959 metal tanks for storage purposes, 737 ovens, 452 dug-out pits, 355 cooking pots, and 179 wooden boats between April and August, this year.

    He added that the security officials also recovered 207 pumping machines, 12 welding machines, two power generators, and two filling machines.

    Kyari said 11 vessels, 30 speed boats, 37 trucks and cars were impounded, while 122 suspects were arrested in connection with various cases of theft of petroleum products.

    He said: ”As you may also be aware, because of the very unfortunate acts of vandals along our major pipelines from Atlas Cove all the way to Ibadan, and all others connecting all the 37 depots that we have across the country.

    ”You know, none of them can take delivery of products today.

    Kyari said: ”And the reason is very simple.

    For some of the lines, for instance, from Warri to Benin, we haven’t operated that line for 15 years.

    Every molecule of product that we put get lost.

    ”And of course you remember the tragic fire incident very close to Warri, close to Sapele that killed so many people.

    “So, we had to shut it down and as we speak, the level of losses that we have on our product pipeline, and I’m sure you may have seen it and I’ll invite you at the right time so we can take a look at it jointly.

    ” He also recalled the fire outbreak happened in the Lagos area, adding, ”in one of our pipelines, we discovered that some of the pipelines were actually connected to individuals homes.

    ”And not only that, and with all sensitivity to our religious beliefs, you know, some of the pipelines and some of the products that we found, were actually in churches and in mosques.

    ”That means that everybody is involved.

    There is no way you will take products, bring in trucks in populated neighborhoods, load it and leave without everybody else knowing about it.

    ”That everybody includes members of the community, members of the religious leadership and also and most likely government officials of all natures, including security agencies personnel.

    ”They are everywhere.

    And I’ve seen this even in the Niger Delta.

    There’s no way you would deliver a volume and lose up to 30 per cent and you will continue to put that products in this line.

    ” He, however, revealed, the NNPCL had recovered 35.8 million litres of the stolen crude oil, 22 million litres of diesel, 0.15 litres of petrol, and 0.76 million litres of kerosene.


    NewsSourceCredit: NAN

  •   Introduction On July 19 2022 the Nigerian government made an official announcement confirming the complete transformation of the Nigerian National Petroleum Corporation NNPC into NNPC Limited NNPCL NNPCL is a brainchild of the Nigerian Petroleum Industry Act PIA which was passed into law in August 2021 1 The NNPC was a state owned and controlled corporation licensed to operate in the country s petroleum industry which utilized the country s fossil fuel and natural gas reserves by partnering with foreign oil companies The new NNPCL while still wholly owned by the State is intended to operate as a fully commercial venture without government funding besides the initial capitalization or control and is expected to be regulated by the Companies and Allied Matters Act 2020 2 In addition NNPCL will now declare dividends to shareholders while retaining 20 percent of profits to grow its business 3 NNPCL is expected to sometime in the future 4 invite the public to purchase shares to raise equity capital for the business of the company especially as it would no longer have access to state funds in line with the objective to commercialise the corporation It is also expected that NNPCL would eventually achieve trading status on global stock exchange markets like its counterparts including Saudi Arabia s Arabian American Oil Company ARAMCO Brazil s Petr leo Brasileiro Petrobras to name a few NNPCL will also no longer be concerned with issues of petrol pricing and subsidy neither will it continue to remit funds into the Federation Accounts Allocation Committee FAAC such that the company funds can be used to further its business rather than issuing national payouts Yet while the introduction of the NNPCL promises to be advantageous to the country s energy industry realistically speaking there are certain challenges that need to be promptly and properly addressed for the new NNPCL to function effectively and achieve its objectives To mention a few continued government influence NNPC s transfer of liabilities to NNPCL corporate governance issues are at the top of concerns Government influence concerns Unlike its state owned counter parts Saudi s Aramco and Petrobras of Brazil the former NNPC had a structure that largely depended on government funding thus making it less competitive and less attractive to global investors especially International Oil Companies IOCs who were uncomfortable doing business with the Corporation due to fears of undue government influence grotesque policies and unnecessary bureaucratic delays While the new NNPCL is promised to be fully independent of government control it remains wholly owned by the government and its initial capital will be completely provided by the government per the provisions of the PIA 5 Section 53 5 of the PIA also provides that all shares of the company held by the government will not be transferable or mortgaged unless approved by the government and the National Economic Council To own is to control in any business enterprise so it is unclear how government influence would be avoided in NNPCL when it is wholly owned and capitalized by the government A better approach would be to provide for a mechanism that splits the shares between the government and the public in a particular ratio such that while the government may understandably retain controlling shares to protect national interest 6 there are checks and balance measures in place to avoid arbitrariness Furthermore the PIA incorporates an automatic transfer of all existing employees under the former NNPC into the new NNPCL with no vetting procedure for these employees in place Section 57 1 under discuss states as follows Upon incorporation of NNPC Limited under section 53 of this Act employees of NNPC and its subsidiaries shall be deemed to be employces of NNPC Limited on terms and conditions not less favourable than that enjoyed prior to the transfer of service and shall be deemed to be service for employment related entitlements as specified under any applicable law This means that NNPCL will have substantially the same employees as the former NNPC which is tantamount to pouring new wine into old wineskins It is understandable that the law makers were wary of leaving the employees of the former NNPC redundant upon the transition However the automatic retention of former NNPC staff is counterproductive because NNPCL essentially inherits its all of its predecessor s employees some of whom are controversially unqualified and redundant thereby stunting its growth potential The PIA goes further to provide for the appointment of a Board of the NNPCL whose appointment shall be done by the President of the country 7 Another interesting provision is Section 58 2 r which provides that the Board should among others consist of six 6 non executive members with at least 15 years post qualification cognate experience in petroleum or any other relevant sector of the economy one from each geopolitical zone effectively politicizing the appointment of these individuals to the board as opposed to appointments strictly based on merit Perhaps realizing that the previous provisions on appointment to the new NNPCL Board may be inconsistent with the new NNPCLs no government influence mandate the law makers included a proviso in Section 58 5 stating that the provisions of the section would only apply where NNPCL remains wholly owned by the government after which the composition would then be determined by the new shareholders after sale of shares to the public This may appear to resolve the evident problem however the shares of the new NNPCL will not be made available to the public until an unknown time in the future which is not specifically stipulated under the Act Although NNPCL s Chief Executive Officer intimated that the company would be ready for an Initial Public Offering IPO mid 2023 this is not set in stone as factors such as governmental and bureaucratic delays in organization may extend this timeline Afterall it did take almost a year to fully effect the provision to incorporate the new NNPCL as opposed to the 6 months timeline stipulated in the PIA In any case even if there are no delays in the estimated timeline for the sale of shares to the public the IPO process appointment of new Board members and other corporate procedure could take months at the earliest to effect This means that the NNPCL would still be run by old NNPC officials pending formalization of all corporate procedures thus making the new NNPCL government run for at least the foreseeable future Effectively this results in NNPCL failing its first mandate as a fully commercialized company i e to be free of government influence and control Transfer of liabilities Another concern is the provision of the PIA which transfers liabilities from the old NNPC to the new NNPCL This is provided for under Section 54 1 the Minister of Petroleum and the Minister of Finance shall within 18 months of the effective date determine the assets interests and liabilities of NNPC to be transferred to NNPC Limited or its subsidiaries and upon the identification the Minister shall cause such assets interests and liabilities to be transferred to NNPC Limited Further provisions of the section discuss issues of assets that would remain with NNPC or the government actions that may be brought against NNPCL NNPC or the government etc However the mechanism for the determination of which assets and liabilities would pass on to NNPCL and which would be dealt with by the old NNPC Government are not stipulated in the PIA leaving much to the discretion of the Minister for Petroleum and Finance with some assistance from the Attorney General of the Federation in peculiar circumstances Section 54 2 states as follows Assets interests and liabilities of NNPC not transferred lo NNPC Limited or its subsidiary under subsection 1 shall remain the assets interests and liabilities of NNPC until they become extinguished or transferred to the Government and six months following the determination under section 54 1 of this Act the Minister the Minister of Finance and the Attorney General of the Federation shall develop a framework for the payment of the labilities not transferred to NNPC Limited and if such determination for which assets interests and liabilities to be transferred has not been concluded within the stipulated period of 18 months all the assets interests liabilities of NNPC is deemed to be transferred to NNPC Limited after 18 months from the effective date A spruce way to deal with the inherited assets and liabilities from NNPC would have been to make provision for the creation of an SPV to specifically deal with these issues especially with respect to the liabilities rather than burden the NNPCL with the old NNPC s mammoth liabilities in its formative years when it should be focused on its growth It is hoped that the Ministers would devise suitable mechanisms to deal with these in the most efficient and least invasive way possible Corporate Governance considerations As a corporate entity NNPCL will be governed by Nigeria s corporate laws as enshrined in the Companies and Allied Matters Act CAMA Of particular importance are some of the corporate governance principles contained in CAMA which are there to ensure international best practice in the day to day operations of Nigerian corporations including provisions on separations of the role of Chairman and Chief Executive Officer appointment of Independent Directors limitation of multiple directorships disqualification from appointment as a director disclosure provisions among others It is expected that upon the IPO of NNPCL it would become a Public Limited Liability Company Plc and thereby subject to more stringent corporate governance and disclosure policies even beyond the statutory requirements under CAMA 8 Some of the corporate governance sections under CAMA include provisions which state that every public company must have at least three 3 independent directors appointed in line with the required qualifications stipulated 9 Directors may not serve on the board of more than five 5 public companies at a time disqualified directors now include directors that were removed from the Board 10 and attendance of Board meetings is now a factor for re election 11 On its disclosure obligations NNPCL is expected to ensure that information on the Memorandum and Articles of Association of the company is accessible to the public and potential investors The shareholding structure 12 shareholders 13 authorized share capital exact date of incorporation e t c all need to be fully disclosed to the public to ensure compliance with the provisions of the PIA and CAMA Records of the minutes of the meeting where the first directors are appointed board resolutions for the nomination of the Chairman e t c all need to be public knowledge to ensure complete transparency and fulfil all international best practice disclosure obligations Worthy of note is Section 60 63 of the PIA which attempts to cater for some corporate governance concerns of the new NNPCL However the provisions seem to be merely advisory and no liabilities are imposed for any failure to carry out such responsibilities Thus recourse is to be had to CAMA and its regulatory body the Corporate Affairs Commission CAC for the enforcement of these provisions in addition to the provisions of CAMA Conclusion On the whole and having considered some salient issues with respect to the new NNPCL there are some who believe that the transformation of the NNPC into NNPCL is merely a name change and that there would be no material difference from the old structure especially as the NNPC has operated as a highly institutionalized corporation for the last 45 years Whether they are right or wrong only time will tell However it is important to remain optimistic that with the right corporate administration NNPCL can create an environment that would not only grow the country s economy but also attract both local and foreign investment thereby making it a major player in the global energy market 1 Section 53 1 of the PIA states that The Minister shall within six months from the commencement of this Act cause to be incorporated ender the Companies and Allied Matters Act a limited liability company which shall be called Nigerian National Petroleum Company Limited NNPC Limited 2 Section 64 of the PIA lists the objectives of the NNPCL 3 Section 53 7 of the PIA 4 NNPCL s Chief Executive Officer at the official announcement of the new NNPCL intimated that the company would be ready for an Initial Public Offering by mid 2023 Retrieved from https bit ly 3c1Hk1V on August 1 2022 5 Section 53 2 4 of the PIA states that The Minister shall at the incorporation of NNPC Limited consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted which shall form the initial paid up share capital of NNPC Limited and the Government shall subscribe and pay cash for the shares 3 Ownership of all shares in NNPC Limited shall be vested in the Government at incorporation and held by the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated in equal portions on behalf of the Federation and the Ministry of Petroleum Incorporated is incorporated under the provisions of the Eighth Schedule to this Act 4 The Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated in consultation with the Government may increase the equity capital of NNPCL 6 Section 1 of the PIA provides that the property and ownership of petroleum within Nigeria and its territorial water continental shelf and exclusive economic zone is vested in the Government of the Federation of Nigeria 7 Section 58 2 of the PIA 8 That is Nigerian Code of Corporate Governance NCCG issued in 2018 by the Financial Reporting Council of Nigeria FRCN and the Securities Exchange Commission Guideline s SCCG and revised reporting template issued in 2021 9 Section 275 of CAMA 2020 10 Section 283 c of CAMA 2020 11 Section 284 2 of CAMA 2020 12 In compliance with section 53 2 which provides that The Minister shall at the incorporation of NNPCL consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted which shall form the initial paid up share capital of NNPCL and the Government shall subscribe and pay cash for the shares 13 In compliance with Section 53 3 of the PIA which states that ownership of all shares in NNPCL shall be vested in the Government at incorporation and held by the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated in equal portions on behalf of the Federation and the Ministry of Petroleum Incorporated is incorporated under the provisions of the Eighth Schedule to this PIA
    The Birth of Nigerian National Petroleum Corporation (NNPC) Limited and What it Means for Nigeria’s Oil and Gas Industry
      Introduction On July 19 2022 the Nigerian government made an official announcement confirming the complete transformation of the Nigerian National Petroleum Corporation NNPC into NNPC Limited NNPCL NNPCL is a brainchild of the Nigerian Petroleum Industry Act PIA which was passed into law in August 2021 1 The NNPC was a state owned and controlled corporation licensed to operate in the country s petroleum industry which utilized the country s fossil fuel and natural gas reserves by partnering with foreign oil companies The new NNPCL while still wholly owned by the State is intended to operate as a fully commercial venture without government funding besides the initial capitalization or control and is expected to be regulated by the Companies and Allied Matters Act 2020 2 In addition NNPCL will now declare dividends to shareholders while retaining 20 percent of profits to grow its business 3 NNPCL is expected to sometime in the future 4 invite the public to purchase shares to raise equity capital for the business of the company especially as it would no longer have access to state funds in line with the objective to commercialise the corporation It is also expected that NNPCL would eventually achieve trading status on global stock exchange markets like its counterparts including Saudi Arabia s Arabian American Oil Company ARAMCO Brazil s Petr leo Brasileiro Petrobras to name a few NNPCL will also no longer be concerned with issues of petrol pricing and subsidy neither will it continue to remit funds into the Federation Accounts Allocation Committee FAAC such that the company funds can be used to further its business rather than issuing national payouts Yet while the introduction of the NNPCL promises to be advantageous to the country s energy industry realistically speaking there are certain challenges that need to be promptly and properly addressed for the new NNPCL to function effectively and achieve its objectives To mention a few continued government influence NNPC s transfer of liabilities to NNPCL corporate governance issues are at the top of concerns Government influence concerns Unlike its state owned counter parts Saudi s Aramco and Petrobras of Brazil the former NNPC had a structure that largely depended on government funding thus making it less competitive and less attractive to global investors especially International Oil Companies IOCs who were uncomfortable doing business with the Corporation due to fears of undue government influence grotesque policies and unnecessary bureaucratic delays While the new NNPCL is promised to be fully independent of government control it remains wholly owned by the government and its initial capital will be completely provided by the government per the provisions of the PIA 5 Section 53 5 of the PIA also provides that all shares of the company held by the government will not be transferable or mortgaged unless approved by the government and the National Economic Council To own is to control in any business enterprise so it is unclear how government influence would be avoided in NNPCL when it is wholly owned and capitalized by the government A better approach would be to provide for a mechanism that splits the shares between the government and the public in a particular ratio such that while the government may understandably retain controlling shares to protect national interest 6 there are checks and balance measures in place to avoid arbitrariness Furthermore the PIA incorporates an automatic transfer of all existing employees under the former NNPC into the new NNPCL with no vetting procedure for these employees in place Section 57 1 under discuss states as follows Upon incorporation of NNPC Limited under section 53 of this Act employees of NNPC and its subsidiaries shall be deemed to be employces of NNPC Limited on terms and conditions not less favourable than that enjoyed prior to the transfer of service and shall be deemed to be service for employment related entitlements as specified under any applicable law This means that NNPCL will have substantially the same employees as the former NNPC which is tantamount to pouring new wine into old wineskins It is understandable that the law makers were wary of leaving the employees of the former NNPC redundant upon the transition However the automatic retention of former NNPC staff is counterproductive because NNPCL essentially inherits its all of its predecessor s employees some of whom are controversially unqualified and redundant thereby stunting its growth potential The PIA goes further to provide for the appointment of a Board of the NNPCL whose appointment shall be done by the President of the country 7 Another interesting provision is Section 58 2 r which provides that the Board should among others consist of six 6 non executive members with at least 15 years post qualification cognate experience in petroleum or any other relevant sector of the economy one from each geopolitical zone effectively politicizing the appointment of these individuals to the board as opposed to appointments strictly based on merit Perhaps realizing that the previous provisions on appointment to the new NNPCL Board may be inconsistent with the new NNPCLs no government influence mandate the law makers included a proviso in Section 58 5 stating that the provisions of the section would only apply where NNPCL remains wholly owned by the government after which the composition would then be determined by the new shareholders after sale of shares to the public This may appear to resolve the evident problem however the shares of the new NNPCL will not be made available to the public until an unknown time in the future which is not specifically stipulated under the Act Although NNPCL s Chief Executive Officer intimated that the company would be ready for an Initial Public Offering IPO mid 2023 this is not set in stone as factors such as governmental and bureaucratic delays in organization may extend this timeline Afterall it did take almost a year to fully effect the provision to incorporate the new NNPCL as opposed to the 6 months timeline stipulated in the PIA In any case even if there are no delays in the estimated timeline for the sale of shares to the public the IPO process appointment of new Board members and other corporate procedure could take months at the earliest to effect This means that the NNPCL would still be run by old NNPC officials pending formalization of all corporate procedures thus making the new NNPCL government run for at least the foreseeable future Effectively this results in NNPCL failing its first mandate as a fully commercialized company i e to be free of government influence and control Transfer of liabilities Another concern is the provision of the PIA which transfers liabilities from the old NNPC to the new NNPCL This is provided for under Section 54 1 the Minister of Petroleum and the Minister of Finance shall within 18 months of the effective date determine the assets interests and liabilities of NNPC to be transferred to NNPC Limited or its subsidiaries and upon the identification the Minister shall cause such assets interests and liabilities to be transferred to NNPC Limited Further provisions of the section discuss issues of assets that would remain with NNPC or the government actions that may be brought against NNPCL NNPC or the government etc However the mechanism for the determination of which assets and liabilities would pass on to NNPCL and which would be dealt with by the old NNPC Government are not stipulated in the PIA leaving much to the discretion of the Minister for Petroleum and Finance with some assistance from the Attorney General of the Federation in peculiar circumstances Section 54 2 states as follows Assets interests and liabilities of NNPC not transferred lo NNPC Limited or its subsidiary under subsection 1 shall remain the assets interests and liabilities of NNPC until they become extinguished or transferred to the Government and six months following the determination under section 54 1 of this Act the Minister the Minister of Finance and the Attorney General of the Federation shall develop a framework for the payment of the labilities not transferred to NNPC Limited and if such determination for which assets interests and liabilities to be transferred has not been concluded within the stipulated period of 18 months all the assets interests liabilities of NNPC is deemed to be transferred to NNPC Limited after 18 months from the effective date A spruce way to deal with the inherited assets and liabilities from NNPC would have been to make provision for the creation of an SPV to specifically deal with these issues especially with respect to the liabilities rather than burden the NNPCL with the old NNPC s mammoth liabilities in its formative years when it should be focused on its growth It is hoped that the Ministers would devise suitable mechanisms to deal with these in the most efficient and least invasive way possible Corporate Governance considerations As a corporate entity NNPCL will be governed by Nigeria s corporate laws as enshrined in the Companies and Allied Matters Act CAMA Of particular importance are some of the corporate governance principles contained in CAMA which are there to ensure international best practice in the day to day operations of Nigerian corporations including provisions on separations of the role of Chairman and Chief Executive Officer appointment of Independent Directors limitation of multiple directorships disqualification from appointment as a director disclosure provisions among others It is expected that upon the IPO of NNPCL it would become a Public Limited Liability Company Plc and thereby subject to more stringent corporate governance and disclosure policies even beyond the statutory requirements under CAMA 8 Some of the corporate governance sections under CAMA include provisions which state that every public company must have at least three 3 independent directors appointed in line with the required qualifications stipulated 9 Directors may not serve on the board of more than five 5 public companies at a time disqualified directors now include directors that were removed from the Board 10 and attendance of Board meetings is now a factor for re election 11 On its disclosure obligations NNPCL is expected to ensure that information on the Memorandum and Articles of Association of the company is accessible to the public and potential investors The shareholding structure 12 shareholders 13 authorized share capital exact date of incorporation e t c all need to be fully disclosed to the public to ensure compliance with the provisions of the PIA and CAMA Records of the minutes of the meeting where the first directors are appointed board resolutions for the nomination of the Chairman e t c all need to be public knowledge to ensure complete transparency and fulfil all international best practice disclosure obligations Worthy of note is Section 60 63 of the PIA which attempts to cater for some corporate governance concerns of the new NNPCL However the provisions seem to be merely advisory and no liabilities are imposed for any failure to carry out such responsibilities Thus recourse is to be had to CAMA and its regulatory body the Corporate Affairs Commission CAC for the enforcement of these provisions in addition to the provisions of CAMA Conclusion On the whole and having considered some salient issues with respect to the new NNPCL there are some who believe that the transformation of the NNPC into NNPCL is merely a name change and that there would be no material difference from the old structure especially as the NNPC has operated as a highly institutionalized corporation for the last 45 years Whether they are right or wrong only time will tell However it is important to remain optimistic that with the right corporate administration NNPCL can create an environment that would not only grow the country s economy but also attract both local and foreign investment thereby making it a major player in the global energy market 1 Section 53 1 of the PIA states that The Minister shall within six months from the commencement of this Act cause to be incorporated ender the Companies and Allied Matters Act a limited liability company which shall be called Nigerian National Petroleum Company Limited NNPC Limited 2 Section 64 of the PIA lists the objectives of the NNPCL 3 Section 53 7 of the PIA 4 NNPCL s Chief Executive Officer at the official announcement of the new NNPCL intimated that the company would be ready for an Initial Public Offering by mid 2023 Retrieved from https bit ly 3c1Hk1V on August 1 2022 5 Section 53 2 4 of the PIA states that The Minister shall at the incorporation of NNPC Limited consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted which shall form the initial paid up share capital of NNPC Limited and the Government shall subscribe and pay cash for the shares 3 Ownership of all shares in NNPC Limited shall be vested in the Government at incorporation and held by the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated in equal portions on behalf of the Federation and the Ministry of Petroleum Incorporated is incorporated under the provisions of the Eighth Schedule to this Act 4 The Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated in consultation with the Government may increase the equity capital of NNPCL 6 Section 1 of the PIA provides that the property and ownership of petroleum within Nigeria and its territorial water continental shelf and exclusive economic zone is vested in the Government of the Federation of Nigeria 7 Section 58 2 of the PIA 8 That is Nigerian Code of Corporate Governance NCCG issued in 2018 by the Financial Reporting Council of Nigeria FRCN and the Securities Exchange Commission Guideline s SCCG and revised reporting template issued in 2021 9 Section 275 of CAMA 2020 10 Section 283 c of CAMA 2020 11 Section 284 2 of CAMA 2020 12 In compliance with section 53 2 which provides that The Minister shall at the incorporation of NNPCL consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted which shall form the initial paid up share capital of NNPCL and the Government shall subscribe and pay cash for the shares 13 In compliance with Section 53 3 of the PIA which states that ownership of all shares in NNPCL shall be vested in the Government at incorporation and held by the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated in equal portions on behalf of the Federation and the Ministry of Petroleum Incorporated is incorporated under the provisions of the Eighth Schedule to this PIA
    The Birth of Nigerian National Petroleum Corporation (NNPC) Limited and What it Means for Nigeria’s Oil and Gas Industry
    Africa2 months ago

    The Birth of Nigerian National Petroleum Corporation (NNPC) Limited and What it Means for Nigeria’s Oil and Gas Industry

    IntroductionOn July 19, 2022, the Nigerian government made an official announcement confirming the complete transformation of the Nigerian National Petroleum Corporation (NNPC) into NNPC Limited (NNPCL).

    NNPCL is a brainchild of the Nigerian Petroleum Industry Act (PIA) which was passed into law in August 2021 [1].

    The NNPC was a state-owned and controlled corporation licensed to operate in the country’s petroleum industry which utilized the country’s fossil fuel and natural gas reserves by partnering with foreign oil companies.

    The new NNPCL, while still wholly owned by the State, is intended to operate as a fully commercial venture without government funding (besides the initial capitalization) or control and is expected to be regulated by the Companies and Allied Matters Act 2020 [2]. 

    In addition, NNPCL will now declare dividends to shareholders while retaining 20 percent of profits to grow its business [3]. 

    NNPCL is expected to sometime in the future [4], invite the public to purchase shares to raise equity capital for the business of the company especially as it would no longer have access to state funds in line with the objective to commercialise the corporation.

    It is also expected that NNPCL would eventually achieve trading status on global stock exchange markets like its counterparts, including Saudi Arabia’s Arabian American Oil Company (ARAMCO) Brazil’s Petróleo Brasileiro (Petrobras) to name a few.

    NNPCL will also no longer be concerned with issues of petrol pricing and subsidy, neither will it continue to remit funds into the Federation Accounts Allocation Committee (FAAC) such that the company funds can be used to further its business rather than issuing national payouts.

    Yet, while the introduction of the NNPCL promises to be advantageous to the country’s energy industry, realistically speaking, there are certain challenges that need to be promptly and properly addressed for the new NNPCL to function effectively and achieve its objectives.

    To mention a few, continued government influence, NNPC’s transfer of liabilities to NNPCL, corporate governance issues are at the top of concerns.

    Government influence concernsUnlike its state-owned counter parts Saudi’s Aramco and Petrobras of Brazil, the former NNPC had a structure that largely depended on government funding thus making it less competitive and less attractive to global investors especially International Oil Companies (IOCs) who were uncomfortable doing business with the Corporation due to fears of undue government influence, grotesque policies and unnecessary bureaucratic delays.

    While the new NNPCL is promised to be fully independent of government control, it remains wholly owned by the government and its initial capital will be completely provided by the government per the provisions of the PIA [5]. 

    Section 53(5) of the PIA also provides that all shares of the company held by the government will not be transferable or mortgaged unless approved by the government and the National Economic Council.

    To own is to control in any business enterprise so it is unclear how government influence would be avoided in NNPCL when it is wholly owned and capitalized by the government.

    A better approach would be to provide for a mechanism that splits the shares between the government and the public in a particular ratio such that while the government may understandably retain controlling shares to protect national interest [6] there are checks and balance measures in place to avoid arbitrariness.

    Furthermore, the PIA incorporates an automatic transfer of all existing employees under the former NNPC into the new NNPCL with no vetting procedure for these employees in place.

    Section 57(1) under discuss states as follows:Upon incorporation of NNPC Limited under section 53 of this Act, employees of NNPC and its subsidiaries shall be deemed to be employces of NNPC Limited on terms and conditions not less favourable than that enjoyed prior to the transfer of service and shall be deemed to be service for employment related entitlements as specified under any applicable law.

    This means that NNPCL will have substantially the same employees as the former NNPC which is tantamount to pouring new wine into old wineskins.

    It is understandable that the law makers were wary of leaving the employees of the former NNPC redundant upon the transition.

    However, the automatic retention of former NNPC staff is counterproductive because NNPCL essentially inherits its all of its predecessor’s employees, some of whom are controversially unqualified and redundant thereby stunting its growth potential.

    The PIA goes further to provide for the appointment of a Board of the NNPCL whose appointment shall be done by the President of the country [7]. 

    Another interesting provision is Section 58(2)(r) which provides that the Board should among others consist of ‘six (6) non-executive members with at least 15 years post-qualification cognate experience in petroleum or any other relevant sector of the economy, one from each geopolitical zone’ effectively politicizing the appointment of these individuals to the board as opposed to appointments strictly based on merit.

    Perhaps realizing that the previous provisions on appointment to the new NNPCL Board may be inconsistent with the new NNPCLs  ‘no government influence’ mandate, the law makers included a proviso in Section 58(5) stating that the provisions of the section would only apply where NNPCL remains wholly owned by the government after which the composition would then be determined by the new shareholders after sale of shares to the public.

    This may appear to resolve the evident problem, however the shares of the new NNPCL will not be made available to the public until an unknown time in the future which is not specifically stipulated under the Act.Although NNPCL’s Chief Executive Officer intimated that the company would be ready for an Initial Public Offering (IPO) mid 2023, this is not set in stone as factors such as governmental and bureaucratic delays in organization may extend this timeline.

    Afterall, it did take almost a year to fully effect the provision to incorporate the new NNPCL as opposed to the 6 months timeline stipulated in the PIA.

    In any case, even if there are no delays in the estimated timeline for the sale of shares to the public, the IPO process, appointment of new Board members and other corporate procedure could take months at the earliest to effect.

    This means that the NNPCL would still be run by old NNPC officials pending formalization of all corporate procedures thus making the new NNPCL ‘government’ run for at least the foreseeable future.

    Effectively, this results in NNPCL failing its first mandate as a fully commercialized company i.e to be free of government influence and control.

    Transfer of liabilitiesAnother concern is the provision of the PIA which transfers liabilities from the old NNPC to the new NNPCL.

    This is provided for under Section 54(1):the Minister of Petroleum and the Minister of Finance shall within 18 months of the effective date determine the assets, interests and liabilities of NNPC to be transferred to NNPC Limited or its subsidiaries and upon the identification, the Minister shall cause such assets, interests and liabilities to be transferred to NNPC Limited.

    Further provisions of the section discuss issues of assets that would remain with NNPC or the government, actions that may be brought against NNPCL, NNPC or the government etc.

    However, the mechanism for the determination of which assets and liabilities would pass on to NNPCL and which would be dealt with by the old NNPC/Government are not stipulated in the PIA, leaving much to the discretion of the Minister for Petroleum and Finance with some assistance from the Attorney General of the Federation in peculiar circumstances.

    Section 54(2) states as follows:Assets, interests and liabilities of NNPC not transferred lo NNPC Limited or its subsidiary under subsection (1), shall remain the assets, interests and liabilities of NNPC until they become extinguished or transferred to the Government and six months following the determination under section 54 (1) of this Act, the Minister, the Minister of Finance and the Attorney-General of the Federation shall develop a framework for the payment of the labilities not transferred to NNPC Limited and if such determination for which assets, interests and liabilities to be transferred has not been concluded within the stipulated period of 18 months, all the assets, interests, liabilities of NNPC is deemed to be transferred to NNPC Limited after 18 months from the effective date.

    A spruce way to deal with the inherited assets and liabilities from NNPC would have been to make provision for the creation of an SPV to specifically deal with these issues, especially with respect to the liabilities rather than burden the NNPCL with the old NNPC’s mammoth liabilities in its formative years when it should be focused on its growth.

    It is hoped that the Ministers would devise suitable mechanisms to deal with these in the most efficient and least invasive way possible.

    Corporate Governance considerationsAs a corporate entity, NNPCL will be governed by Nigeria’s corporate laws as enshrined in the Companies and Allied Matters Act (CAMA).

    Of particular importance are some of the corporate governance principles contained in CAMA which are there to ensure international best practice in the day-to-day operations of Nigerian corporations including provisions on separations of the role of Chairman and Chief Executive Officer, appointment of Independent Directors, limitation of multiple directorships, disqualification from appointment as a director, disclosure provisions among others.

    It is expected that upon the IPO of NNPCL, it would become a Public Limited Liability Company (Plc) and thereby subject to more stringent corporate governance and disclosure policies even beyond the statutory requirements under CAMA [8].

    Some of the corporate governance sections under CAMA include provisions which state that every public company must have at least three (3) independent directors appointed in line with the required qualifications stipulated; [9] Directors may not serve on the board of more than five (5) public companies at a time; disqualified directors now include directors that were removed from the Board; [10] and attendance of Board meetings is now a factor for re-election [11]. 

    On its disclosure obligations, NNPCL is expected to ensure that information on the Memorandum and Articles of Association of the company is accessible to the public and potential investors.

    The shareholding structure [12], shareholders [13], authorized share capital, exact date of incorporation e.t.c all need to be fully disclosed to the public to ensure compliance with the provisions of the PIA and CAMA.

    Records of the minutes of the meeting where the first directors are appointed, board resolutions for the nomination of the Chairman e.t.c all need to be public knowledge to ensure complete transparency and fulfil all international best practice disclosure obligations.

    Worthy of note is Section 60-63 of the PIA which attempts to cater for some corporate governance concerns of the new NNPCL.

    However, the provisions seem to be merely advisory and no liabilities are imposed for any failure to carry out such responsibilities.

    Thus, recourse is to be had to CAMA and its regulatory body, the Corporate Affairs Commission (CAC) for the enforcement of these provisions in addition to the provisions of CAMA.

    ConclusionOn the whole and having considered some salient issues with respect to the new NNPCL, there are some who believe that the transformation of the NNPC into NNPCL is merely a name change and that there would be no material difference from the old structure especially as the NNPC has operated as a highly institutionalized corporation for the last 45 years.

    Whether they are right or wrong, only time will tell.

    However, it is important to remain optimistic that with the right corporate administration, NNPCL can create an environment that would not only grow the country’s economy but also attract both local and foreign investment thereby making it a major player in the global energy market.

    [1] Section 53(1) of the PIA states that ‘The Minister shall within six months from the commencement of this Act, cause to be incorporated ender the Companies and Allied Matters Act, a limited liability company, which shall be called Nigerian National Petroleum Company Limited (NNPC Limited)’[2] Section 64 of the PIA lists the objectives of the NNPCL.

    [3] Section 53(7) of the PIA[4] NNPCL’s Chief Executive Officer at the official announcement of the new NNPCL intimated that the company would be ready for an Initial Public Offering by mid 2023.

    Retrieved from https://bit.ly/3c1Hk1V on August 1, 2022.

    [5] Section 53(2-4) of the PIA states that ‘The Minister shall at the incorporation of NNPC Limited, consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted, which shall form the initial paid-up share capital of NNPC Limited and the Government shall subscribe and pay cash for the shares (3) Ownership of all shares in NNPC Limited shall be vested in the Government at incorporation and held by the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated in equal portions on behalf of the Federation and the Ministry of Petroleum Incorporated is incorporated under the provisions of the Eighth Schedule to this Act (4) The Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated in consultation with the Government, may increase the equity capital of NNPCL.

    [6] Section 1 of the PIA provides that the property and ownership of petroleum within Nigeria and its territorial water, continental shelf and exclusive economic zone is vested in the Government of the Federation of Nigeria.

    [7] Section 58(2) of the PIA.

    [8] That is, Nigerian Code of Corporate Governance (NCCG) issued in 2018 by the Financial Reporting Council of Nigeria (FRCN) and the Securities Exchange Commission Guideline’s (SCCG) and revised reporting template issued in 2021.

     [9] Section 275 of CAMA 2020.

    [10] Section 283(c) of CAMA 2020.

    [11] Section 284(2) of CAMA 2020.

    [12] In compliance with section 53(2) which provides that The Minister shall at the incorporation of NNPCL consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted, which shall form the initial paid-up share capital of NNPCL and the Government shall subscribe and pay cash for the shares.

    [13] In compliance with Section 53(3) of the PIA which states that ownership of all shares in NNPCL shall be vested in the Government at incorporation and held by the Ministry of Finance Incorporated and the Ministry of Petroleum Incorporated in equal portions on behalf of the Federation and the Ministry of Petroleum Incorporated is incorporated under the provisions of the Eighth Schedule to this PIA.

  •  The Institute of Chartered Secretaries and Administrators of Nigeria ICSAN has lauded the Federal Government for unveiling the Nigerian National Petroleum Company Limited NNPCL as a new entity The News Agency of Nigeria reports that President Muhammadu Buhari on July 19 unveiled NNPCL as a successor to the Nigerian National Petroleum Company NNPC in deference to the provisions of the Petroleum Industry Act 2021 ICSAN President Mr Gbenga Owokalade who described the development as a positive one said it has freed the NNPC from institutional regulations and given it the power to conduct its affairs as a private company Owokalade said that development would ensure greater efficiency and boost transparency in the oil and gas sector The new entity NNPCL is now a commercially oriented national petroleum company with all the attributes of a thriving private enterprise As a leading professional institute on corporate governance and public administration we applaud the vision behind this structural substitution of the NNPC with NNPCL which is to ensure greater efficiency and transparency in the oil exploration and distribution system We believe the new entity is more structurally poised and organically well adjusted to provide a pivotal role for the sector This transition to a private company will enable the company to be more value driven and its operations more inclined to conform to international best practices This is a very laudable development and we comment on it for the positive implications it portends for the energy sector and the nation s economy in general He advised the management of the NNPCL to ensure that the principles of corporate governance are well entrenched in the new entity for the company to fully reap the benefits of its emergence as a private company He reiterated the need for an adequate framework of risk management and control system within the new entity NNPCL Furthermore proper checks and balances must be built into the system to ensure effective operation and efficiency of the company is not at any time compromised he said NewsSourceCredit NAN
    ICSAN lauds FG on NNPCL unveiling
     The Institute of Chartered Secretaries and Administrators of Nigeria ICSAN has lauded the Federal Government for unveiling the Nigerian National Petroleum Company Limited NNPCL as a new entity The News Agency of Nigeria reports that President Muhammadu Buhari on July 19 unveiled NNPCL as a successor to the Nigerian National Petroleum Company NNPC in deference to the provisions of the Petroleum Industry Act 2021 ICSAN President Mr Gbenga Owokalade who described the development as a positive one said it has freed the NNPC from institutional regulations and given it the power to conduct its affairs as a private company Owokalade said that development would ensure greater efficiency and boost transparency in the oil and gas sector The new entity NNPCL is now a commercially oriented national petroleum company with all the attributes of a thriving private enterprise As a leading professional institute on corporate governance and public administration we applaud the vision behind this structural substitution of the NNPC with NNPCL which is to ensure greater efficiency and transparency in the oil exploration and distribution system We believe the new entity is more structurally poised and organically well adjusted to provide a pivotal role for the sector This transition to a private company will enable the company to be more value driven and its operations more inclined to conform to international best practices This is a very laudable development and we comment on it for the positive implications it portends for the energy sector and the nation s economy in general He advised the management of the NNPCL to ensure that the principles of corporate governance are well entrenched in the new entity for the company to fully reap the benefits of its emergence as a private company He reiterated the need for an adequate framework of risk management and control system within the new entity NNPCL Furthermore proper checks and balances must be built into the system to ensure effective operation and efficiency of the company is not at any time compromised he said NewsSourceCredit NAN
    ICSAN lauds FG on NNPCL unveiling
    Economy2 months ago

    ICSAN lauds FG on NNPCL unveiling

    The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN), has lauded the Federal Government for unveiling the Nigerian National Petroleum Company Limited (NNPCL) as a new entity.

    The News Agency of Nigeria reports that President Muhammadu Buhari on July 19 unveiled NNPCL as a successor to the Nigerian National Petroleum Company(NNPC) in deference to the provisions of the Petroleum Industry Act, 2021.

    ICSAN President, Mr Gbenga Owokalade, who described the development as a positive one, said it has freed the NNPC from institutional regulations and given it the power to conduct its affairs as a private company.

    Owokalade said that development would ensure greater efficiency and boost transparency in the oil and gas sector.

    “The new entity, NNPCL is now a commercially-oriented national petroleum company with all the attributes of a thriving private enterprise.

    “As a leading professional institute on corporate governance and public administration, we applaud the vision behind this structural substitution of the NNPC with NNPCL, which is to ensure greater efficiency and transparency in the oil exploration and distribution system.

    “We believe the new entity is more structurally poised and organically well-adjusted to provide a pivotal role for the sector.

    “This transition to a private company will enable the company to be more value-driven and its operations more inclined to conform to international best practices.

    “This is a very laudable development and we comment on it for the positive implications it portends for the energy sector and the nation’s economy in general.

    He advised the management of the NNPCL to ensure that the principles of corporate governance are well-entrenched in the new entity for the company to fully reap the benefits of its emergence as a private company.

    He reiterated the need for an adequate framework of risk management and control system within the new entity, NNPCL.

    “Furthermore, proper checks and balances must be built into the system to ensure effective operation and efficiency of the company is not at any time compromised,” he said.

    NewsSourceCredit: NAN

  •   NNPCL a transition long overdue BMO gt The Federal Government s inspired transition of the Nigeria National Petroleum Corporation NNPC to a private limited liability company is a landmark achievement the Buhari Media Organisation BMO says The group said that for many years including during the military era efforts were made to unbundle the behemoth known previously as NNPC and make it run more efficiently as a company but to no avail In a statement signed by its Chairman Niyi Akinsiju and Secretary Cassidy Madueke BMO said this inability was a result of a lack of political will on the part of the previous administrations It therefore commended the President Muhammadu Buhari administration for showing visionary leadership and having the political will to do what previous administrations could not do by not only enacting the Petroleum Industry Act PIA but going a step further to support and facilitate the transformation of NNPC into Nigeria National Petroleum Company Limited NNPCL We also note that with the transition to a limited liability company there would be transparency accountability and profitability in the running of the organisation Also as a company that will henceforth operate under the Companies and Allied Matters Act NNPCL will comply with the laws guiding private companies operation while the opaqueness previously associated with its operation will be a thing of the past it said The group commended the Buhari administration for keeping its promise of making NNPC work in the interest of the Nigerian people ABI NewsSourceCredit NAN
    NNPCL, a transition long overdue -BMO  
      NNPCL a transition long overdue BMO gt The Federal Government s inspired transition of the Nigeria National Petroleum Corporation NNPC to a private limited liability company is a landmark achievement the Buhari Media Organisation BMO says The group said that for many years including during the military era efforts were made to unbundle the behemoth known previously as NNPC and make it run more efficiently as a company but to no avail In a statement signed by its Chairman Niyi Akinsiju and Secretary Cassidy Madueke BMO said this inability was a result of a lack of political will on the part of the previous administrations It therefore commended the President Muhammadu Buhari administration for showing visionary leadership and having the political will to do what previous administrations could not do by not only enacting the Petroleum Industry Act PIA but going a step further to support and facilitate the transformation of NNPC into Nigeria National Petroleum Company Limited NNPCL We also note that with the transition to a limited liability company there would be transparency accountability and profitability in the running of the organisation Also as a company that will henceforth operate under the Companies and Allied Matters Act NNPCL will comply with the laws guiding private companies operation while the opaqueness previously associated with its operation will be a thing of the past it said The group commended the Buhari administration for keeping its promise of making NNPC work in the interest of the Nigerian people ABI NewsSourceCredit NAN
    NNPCL, a transition long overdue -BMO  
    General news2 months ago

    NNPCL, a transition long overdue -BMO  

    NNPCL, a transition long overdue -BMO   >The Federal Government’s inspired transition of the Nigeria National Petroleum Corporation (NNPC) to a private limited liability company is a landmark achievement,  the Buhari Media Organisation (BMO) says.

    The group said that for many years, including during the military era, efforts were made to unbundle the behemoth known previously as NNPC and make it run more efficiently as a company, but to no avail.

    In a statement signed by its Chairman Niyi Akinsiju and Secretary Cassidy Madueke, BMO said this inability was a result of a lack of political will on the part of the previous administrations.

    It, therefore, commended the President Muhammadu Buhari administration for showing visionary leadership and having the political will to do what previous administrations could not do, by not only enacting the Petroleum Industry Act (PIA), but going a step further to support and facilitate the transformation of NNPC into Nigeria National Petroleum Company Limited (NNPCL).

    “We also note that with the transition to a limited liability company, there would be transparency, accountability and profitability in the running of the organisation.

    “Also, as a company that will henceforth operate under the Companies and Allied Matters Act, NNPCL will comply with the laws guiding private companies’ operation, while the opaqueness previously associated with its operation will be a thing of the past,” it said.

    The group commended the Buhari administration for keeping its promise of making NNPC work in the interest of the Nigerian people.

    ABI  

    NewsSourceCredit: NAN

  •  President Muhammadu Buhari has unveiled the new Nigerian National Petroleum Company Limited NNPC Limited affirming that the company is mandated by law to ensure that Nigeria s National Energy Security is guaranteed Speaking at the historic occasion at State House Conference Centre the President said Africa s largest National Oil Company NOC would also support sustainable growth across other sectors of the economy as it delivers energy to the world At the event which featured a Special rendition of the Theme Song Energy for today Energy for tomorrow Energy for Everyone by an Ensemble the president recounted how God had used him to consistently play an important role in shaping the destiny of the country s NOC in the last 45 years He expressed optimism that the NNPC Limited would sustainably deliver value to its over 200 million shareholders and the global energy community operate without relying on government funding and free from institutional regulations such as the Treasury Single Account TSA This is a landmark event for the Nigerian oil industry Our country places high premium in creating the right atmosphere that supports investment and growth to boost our economy and continue to play an important role in sustaining global energy requirements We are transforming our petroleum industry to strengthen its capacity and market relevance for the present and future global energy priorities By chance of history I was privileged to lead the creation of the Nigerian National Petroleum Corporation on the 1st July 1977 Forty Four 44 years later I was again privileged to sign the Petroleum Industry Act PIA in 2021 heralding the long awaited reform of our petroleum sector he said According to him the provisions of PIA 2021 have given the Nigerian petroleum industry a new impetus with improved fiscal framework transparent governance enhanced regulation and the creation of a commercially driven and independent National Oil Company He said this would enable the company to operate without relying on government funding and free from institutional regulations such as the Treasury Single Account Public Procurement and Fiscal Responsibility Acts It will of course conduct itself under the best international business practice in transparency governance and commercial viability Coincidentally I on the 1st of July 2022 authorized transfer of assets from the Nigerian National Petroleum Corporation to its successor company the Nigerian National Petroleum Company Limited and steered the implementation leading to the unveiling of Africa s largest National Oil Company today I therefore thank Almighty God for choosing me to consistently play an important role in shaping the destiny of our National Oil Company from the good to the great he added The president therefore assured stakeholders in the industry that Africa s largest NOC would adhere to its fundamental corporate values of Integrity Excellence and Sustainability while operating as a commercial independent and viable NOC at par with its peers around the world He further stated that the company would focus on becoming a dynamic global energy company of choice to deliver energy for today for tomorrow for the day days after tomorrow He thanked the leadership and members of the National Assembly for demonstrating uncommon courage and patriotism in the passage of PIA that culminated in the creation of NNPCL Minister of State for Petroleum Resources Timipre Sylva said with the signing of the PIA which assured international and local oil companies of adequate protection for their investments the nation s petroleum industry is no longer rudderless He said From the onset of this administration Mr President never concealed his desire to create a more conducive environment for growth of the oil and gas sector and addressing legitimate grievances of communities most impacted by extractive industries While the country was waiting for the PIA Nigeria s oil and gas industry lost about 50 billion worth of investments In fact between 2015 and 2019 KPMG states that only 4 percent of the 70 billion investment inflows into Africa s oil and gas industry came to Nigeria even though the country is the continent s biggest producer and the largest reserves We are setting all these woes behind us and a clear path for the survival and growth of our petroleum industry is now before us Sylva described the unveiling of NNPC Limited as a new dawn in the quest for the growth and development of the Nigerian Oil and Gas Industry opening new vintages for partnerships He thanked the president for his unparalleled leadership steadfastness and unalloyed support towards ensuring that the country s oil and gas industry is on a sound footing The Group Chief Executive Officer of NNPC Limited Mele Kyari announced that the company had adopted a strategic initiative to achieve the mandate of energy security for the country by rolling out a comprehensive expansion plan to grow its fuel retail presence from 547 to over 1500 outlets within the next six months He assured stakeholders and the global energy community that the new company was endowed with the best human resources one can find anywhere in the industry NNPC Limited is positioned to lead Africa s gradual transition to new energy by deepening natural gas production to create low carbon activities and positively change the story of energy poverty at home and around the world NewsSourceCredit NAN
    Buhari unveils new NNPC Ltd, assures Nigerians of energy security
     President Muhammadu Buhari has unveiled the new Nigerian National Petroleum Company Limited NNPC Limited affirming that the company is mandated by law to ensure that Nigeria s National Energy Security is guaranteed Speaking at the historic occasion at State House Conference Centre the President said Africa s largest National Oil Company NOC would also support sustainable growth across other sectors of the economy as it delivers energy to the world At the event which featured a Special rendition of the Theme Song Energy for today Energy for tomorrow Energy for Everyone by an Ensemble the president recounted how God had used him to consistently play an important role in shaping the destiny of the country s NOC in the last 45 years He expressed optimism that the NNPC Limited would sustainably deliver value to its over 200 million shareholders and the global energy community operate without relying on government funding and free from institutional regulations such as the Treasury Single Account TSA This is a landmark event for the Nigerian oil industry Our country places high premium in creating the right atmosphere that supports investment and growth to boost our economy and continue to play an important role in sustaining global energy requirements We are transforming our petroleum industry to strengthen its capacity and market relevance for the present and future global energy priorities By chance of history I was privileged to lead the creation of the Nigerian National Petroleum Corporation on the 1st July 1977 Forty Four 44 years later I was again privileged to sign the Petroleum Industry Act PIA in 2021 heralding the long awaited reform of our petroleum sector he said According to him the provisions of PIA 2021 have given the Nigerian petroleum industry a new impetus with improved fiscal framework transparent governance enhanced regulation and the creation of a commercially driven and independent National Oil Company He said this would enable the company to operate without relying on government funding and free from institutional regulations such as the Treasury Single Account Public Procurement and Fiscal Responsibility Acts It will of course conduct itself under the best international business practice in transparency governance and commercial viability Coincidentally I on the 1st of July 2022 authorized transfer of assets from the Nigerian National Petroleum Corporation to its successor company the Nigerian National Petroleum Company Limited and steered the implementation leading to the unveiling of Africa s largest National Oil Company today I therefore thank Almighty God for choosing me to consistently play an important role in shaping the destiny of our National Oil Company from the good to the great he added The president therefore assured stakeholders in the industry that Africa s largest NOC would adhere to its fundamental corporate values of Integrity Excellence and Sustainability while operating as a commercial independent and viable NOC at par with its peers around the world He further stated that the company would focus on becoming a dynamic global energy company of choice to deliver energy for today for tomorrow for the day days after tomorrow He thanked the leadership and members of the National Assembly for demonstrating uncommon courage and patriotism in the passage of PIA that culminated in the creation of NNPCL Minister of State for Petroleum Resources Timipre Sylva said with the signing of the PIA which assured international and local oil companies of adequate protection for their investments the nation s petroleum industry is no longer rudderless He said From the onset of this administration Mr President never concealed his desire to create a more conducive environment for growth of the oil and gas sector and addressing legitimate grievances of communities most impacted by extractive industries While the country was waiting for the PIA Nigeria s oil and gas industry lost about 50 billion worth of investments In fact between 2015 and 2019 KPMG states that only 4 percent of the 70 billion investment inflows into Africa s oil and gas industry came to Nigeria even though the country is the continent s biggest producer and the largest reserves We are setting all these woes behind us and a clear path for the survival and growth of our petroleum industry is now before us Sylva described the unveiling of NNPC Limited as a new dawn in the quest for the growth and development of the Nigerian Oil and Gas Industry opening new vintages for partnerships He thanked the president for his unparalleled leadership steadfastness and unalloyed support towards ensuring that the country s oil and gas industry is on a sound footing The Group Chief Executive Officer of NNPC Limited Mele Kyari announced that the company had adopted a strategic initiative to achieve the mandate of energy security for the country by rolling out a comprehensive expansion plan to grow its fuel retail presence from 547 to over 1500 outlets within the next six months He assured stakeholders and the global energy community that the new company was endowed with the best human resources one can find anywhere in the industry NNPC Limited is positioned to lead Africa s gradual transition to new energy by deepening natural gas production to create low carbon activities and positively change the story of energy poverty at home and around the world NewsSourceCredit NAN
    Buhari unveils new NNPC Ltd, assures Nigerians of energy security
    General news3 months ago

    Buhari unveils new NNPC Ltd, assures Nigerians of energy security

    President Muhammadu Buhari has unveiled the new Nigerian National Petroleum Company Limited (NNPC Limited), affirming that the company is mandated by law to ensure that Nigeria’s National Energy Security is guaranteed.

    Speaking at the historic occasion at State House Conference Centre, the President said Africa’s largest National Oil Company (NOC) would also support sustainable growth across other sectors of the economy as it delivers energy to the world.

    At the event, which featured a Special rendition of the Theme Song ”Energy for today, Energy  for tomorrow, Energy for Everyone’‘ by an Ensemble, the president recounted how God had used him to consistently play an important role in shaping the destiny of the country’s NOC in the last 45 years.

    He expressed optimism that the NNPC Limited would sustainably deliver value to its over 200 million shareholders and the global energy community; operate without relying on government funding and free from institutional regulations such as the Treasury Single Account (TSA).

    ‘‘This is a landmark event for the Nigerian oil industry.

    ‘‘Our country places high premium in creating the right atmosphere that supports investment and growth to boost our economy and continue to play an important role in sustaining global energy requirements.

    ‘‘We are transforming our petroleum industry, to strengthen its capacity and market relevance for the present and future global energy priorities.

    ‘‘By chance of history, I was privileged to lead the creation of the Nigerian National Petroleum Corporation on the 1st July 1977.

    Forty-Four (44) years later, I was again privileged to sign the Petroleum Industry Act (PIA) in 2021, heralding the long-awaited reform of our petroleum sector,” he said.

    According to him, the provisions of PIA 2021, have given the Nigerian petroleum industry a new impetus, with improved fiscal framework, transparent governance, enhanced regulation and the creation of a commercially-driven and independent National Oil Company.

    He said this would enable the company to operate without relying on government funding and free from institutional regulations such as the Treasury Single Account, Public Procurement and Fiscal Responsibility Acts.

    ‘‘It will, of course, conduct itself under the best international business practice in transparency, governance and commercial viability.

    ‘‘Coincidentally, I, on the 1st of July 2022 authorized transfer of assets from the Nigerian National Petroleum Corporation to its successor company, the Nigerian National Petroleum Company Limited, and steered the implementation leading to the unveiling of Africa’s largest National Oil Company today.

    ‘‘I therefore thank Almighty God for choosing me to consistently play an important role in shaping the destiny of our National Oil Company from the good to the great,’’ he added.

    The president, therefore, assured stakeholders in the industry that Africa’s largest NOC would adhere to its fundamental corporate values of Integrity, Excellence and Sustainability, while operating as a commercial, independent and viable NOC at par with its peers around the world.

    He further stated that the company would focus on becoming a dynamic global energy company of choice to deliver energy for today, for tomorrow, for the day days after tomorrow.

    He thanked the leadership and members of the National Assembly for demonstrating uncommon courage and patriotism in the passage of PIA that culminated in the creation of NNPCL.

    Minister of State for Petroleum Resources, Timipre Sylva, said with the signing of the PIA, which assured international and local oil companies of adequate protection for their investments, ”the nation’s petroleum industry is no longer rudderless”.

    He said: ‘‘From the onset of this administration, Mr. President never concealed his desire to create a more conducive environment for growth of the oil and gas sector, and addressing legitimate grievances of communities most impacted by extractive industries.

    ‘‘While the country was waiting for the PIA, Nigeria’s oil and gas industry lost about $50 billion worth of investments.

    ”In fact, between 2015 and 2019, KPMG states that “only 4 percent of the $70 billion investment inflows into Africa’s oil and gas industry came to Nigeria even though the country is the continent’s biggest producer and the largest reserves.

    ‘‘We are setting all these woes behind us, and a clear path for the survival and growth of our petroleum industry is now before us.” Sylva described the unveiling of NNPC Limited as a new dawn in the quest for the growth and development of the Nigerian Oil and Gas Industry, opening new vintages for partnerships.

    He thanked the president for his ”unparalleled leadership, steadfastness, and unalloyed support towards ensuring that the country’s oil and gas industry is on a sound footing”.

    The Group Chief Executive Officer of NNPC Limited, Mele Kyari, announced that the company had adopted a strategic initiative to achieve the mandate of energy security for the country by rolling out a comprehensive expansion plan to grow its fuel retail presence from 547 to over 1500 outlets within the next six months.

    He assured stakeholders and the global energy community that the new company was endowed with the ‘‘best human resources one can find anywhere in the industry.

    ‘‘NNPC Limited is positioned to lead Africa’s gradual transition to new energy by deepening natural gas production to create low carbon activities and positively change the story of energy poverty at home and around the world.”

    NewsSourceCredit: NAN

  •   President Muhammadu Buhari says rising crude prices present a great opportunity for Nigeria especially with the passage of the Petroleum Industry Act PIA The Nigerian News Agency reports that Buhari had this to say on Monday in Abuja declaring the 5th Nigerian International Energy Summit NIES open The theme of the summit is Revitalize the Industry Fuels of the Future and Energy Transition World crude oil prices rose to US 104 a barrel on Monday following ongoing hostilities between Russia and Ukraine On behalf of Sylva Minister of State for Petroleum Resources the president pointed out that the the summit had been of great value in terms of policy input for the government and business development resources for the private sector He said Crude oil prices are rising again after turning negative in April 2020 It is a great opportunity for us as country With the PIA in place there should be no excuses The conducive investment environment that has been the bane of the industry has been taken care of by the PIA Now there is a level of certainty for the regulatory administrative and fiscal framework and the legitimate complaints of the most impacted host communities the industry has been addressed Buhari said that to demonstrate the government s seriousness the administration wasted no time in implementing PIA We moved quickly and scrapped the existing agencies and replaced them with new We have also inaugurated their new Chief Executives We also secured the incorporation of the Nigerian National Petroleum Company Limited NNPCL under the Companies and Allied Affairs Act CAMA The NNPCL is now a limited liability company and our goal is to make it the largest most capitalized and most profitable company in all of Africa he said The president further told the summit that Nigeria had adopted gas as its transition fuel as the world moves towards cleaner energy sources He said this informed the administration s Gas Decade Initiative which aims to transform Nigeria into a gas based industrialized nation through an enhanced and accelerated gas revolution Buhari said We will ensure further optimal exploitation and utilization of the country s vast natural gas resources Given the country s potential of approximately 600 trillion cubic feet natural gas has enormous potential to diversify and grow Nigeria s economy We are fully aware that the energy transition raises the bar in terms of environmental social and governance demands We don t have to panic We are already building blocks and bricks that will ensure a smooth energy transition as the country joins the race for net zero carbon emissions The President said Nigeria was poised to meet global demand for cleaner energy sources with the enactment of PIAs the successful completion of the 2020 Marginal Oil Fields bidding round and the Gas Decade initiative We look forward to deliberating on the strategy document from this summit and incorporating critical parts of it into government policies when necessary he said World energy leaders are discussing the way forward and strategies for managing Africa s huge energy resources at the summit The summit which opened on Monday will end on March 3
    Rising crude oil prices, opportunity for Nigeria — Buhari
      President Muhammadu Buhari says rising crude prices present a great opportunity for Nigeria especially with the passage of the Petroleum Industry Act PIA The Nigerian News Agency reports that Buhari had this to say on Monday in Abuja declaring the 5th Nigerian International Energy Summit NIES open The theme of the summit is Revitalize the Industry Fuels of the Future and Energy Transition World crude oil prices rose to US 104 a barrel on Monday following ongoing hostilities between Russia and Ukraine On behalf of Sylva Minister of State for Petroleum Resources the president pointed out that the the summit had been of great value in terms of policy input for the government and business development resources for the private sector He said Crude oil prices are rising again after turning negative in April 2020 It is a great opportunity for us as country With the PIA in place there should be no excuses The conducive investment environment that has been the bane of the industry has been taken care of by the PIA Now there is a level of certainty for the regulatory administrative and fiscal framework and the legitimate complaints of the most impacted host communities the industry has been addressed Buhari said that to demonstrate the government s seriousness the administration wasted no time in implementing PIA We moved quickly and scrapped the existing agencies and replaced them with new We have also inaugurated their new Chief Executives We also secured the incorporation of the Nigerian National Petroleum Company Limited NNPCL under the Companies and Allied Affairs Act CAMA The NNPCL is now a limited liability company and our goal is to make it the largest most capitalized and most profitable company in all of Africa he said The president further told the summit that Nigeria had adopted gas as its transition fuel as the world moves towards cleaner energy sources He said this informed the administration s Gas Decade Initiative which aims to transform Nigeria into a gas based industrialized nation through an enhanced and accelerated gas revolution Buhari said We will ensure further optimal exploitation and utilization of the country s vast natural gas resources Given the country s potential of approximately 600 trillion cubic feet natural gas has enormous potential to diversify and grow Nigeria s economy We are fully aware that the energy transition raises the bar in terms of environmental social and governance demands We don t have to panic We are already building blocks and bricks that will ensure a smooth energy transition as the country joins the race for net zero carbon emissions The President said Nigeria was poised to meet global demand for cleaner energy sources with the enactment of PIAs the successful completion of the 2020 Marginal Oil Fields bidding round and the Gas Decade initiative We look forward to deliberating on the strategy document from this summit and incorporating critical parts of it into government policies when necessary he said World energy leaders are discussing the way forward and strategies for managing Africa s huge energy resources at the summit The summit which opened on Monday will end on March 3
    Rising crude oil prices, opportunity for Nigeria — Buhari
    Economy>Oil & Gas7 months ago

    Rising crude oil prices, opportunity for Nigeria — Buhari

    President Muhammadu Buhari says rising crude prices present a great opportunity for Nigeria, especially with the passage of the Petroleum Industry Act (PIA).

    The Nigerian News Agency reports that Buhari had this to say on Monday in Abuja, declaring the 5th Nigerian International Energy Summit (NIES) open.

    The theme of the summit is: "Revitalize the Industry: "Fuels of the Future and Energy Transition".

    World crude oil prices rose to US$104 a barrel on Monday following ongoing hostilities between Russia and Ukraine.

    On behalf of Sylva, Minister of State for Petroleum Resources, the president pointed out that the

    the summit had been of great value in terms of policy input for the government and business development resources for the private sector.

    He said: "Crude oil prices are rising again after turning negative in April 2020. It is a great opportunity for us as

    country.

    “With the PIA in place, there should be no excuses. The conducive investment environment that has been the bane of the industry has been taken care of by the PIA.

    “Now there is a level of certainty

    for the regulatory, administrative and fiscal framework and the legitimate complaints of the most impacted host communities the industry has been addressed”.

    Buhari said that to demonstrate the government's seriousness, the administration wasted no time in implementing PIA.

    “We moved quickly and scrapped the existing agencies and replaced them

    with new We have also inaugurated their new Chief Executives.

    “We also secured the incorporation of the Nigerian National Petroleum Company Limited (NNPCL) under the Companies and Allied Affairs Act (CAMA).

    “The NNPCL is now a limited liability company and our goal is to make it the largest, most capitalized and most profitable company in all of Africa,” he said.

    The president further told the summit that Nigeria had adopted gas as its transition fuel as the world moves towards cleaner energy sources.

    He said this informed the administration's Gas Decade Initiative, which aims to transform Nigeria into a gas-based industrialized nation through an enhanced and accelerated gas revolution.

    Buhari said: “We will ensure further optimal exploitation and utilization of the country's vast natural gas resources.

    “Given the country's potential of approximately 600 trillion cubic feet, natural gas has enormous potential to diversify and grow Nigeria's economy.

    “We are fully aware that the energy transition raises the bar in terms of environmental, social and governance demands.

    “We don't have to panic. We are already building blocks and bricks that will ensure a smooth energy transition as the country joins the race for net zero carbon emissions.”

    The President said Nigeria was poised to meet global demand for cleaner energy sources with the enactment of PIAs, the successful completion of the 2020 Marginal Oil Fields bidding round and the Gas Decade initiative.

    “We look forward to deliberating on the strategy document from this summit and incorporating critical parts of it into government policies when necessary,” he said.

    World energy leaders are discussing the way forward and strategies for managing Africa's huge energy resources at the summit.

    The summit, which opened on Monday, will end on March 3.