The Minister of State for Petroleum Resources and Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, on Thursday hinted that the Federal Government has concluded plans to unbundle the NNPC into 30 profit-making companies with separate Managing Directors in the weeks ahead as part of the ongoing transformation of the national oil company.
Kachikwu gave this hint at the 25th Oloibiri Lecture Series and Energy Forum in Abuja with the theme: ‘Technological Advances in Hydrocarbon Exploration and Exploitation: Solutions to Global Oil Price Stability.’
The Minister stated that the NNPC has been moved from a loss position of N160billion to some N3billion by January 2016, adding that by year end the Corporation should start making some profit.
In a statement by the corporation’s Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe said “For the first time, we are unbundling the subset of the NNPC to 30 independent companies with their own Managing Directors. Titles like Group Executive Directors are going to disappear and in their place you are going to have Chief Executive Officers and they are going to take responsibilities for their titles. At the end of the day, the CEO of an upstream company must deliver an upstream result.”
He also informed that as part of measures to stabilise crude oil prices, some members of the Organisation of the Petroleum Exporting Countries (OPEC) are scheduled to meet with Russia on 20th March, 2016, in Moscow to fine tune collaborative strategies.
The Minister noted that the President Muhammadu Buhari administration is focusing on developing the nation’s gas resources in order to boost revenue as part of the diversification policy of the Federal Government.
Dr. Kachikwu said the petroleum sector, under his watch, would rapidly review the contracting cycle of projects from two years to six months in the upstream, stressing that efforts are in top gear to review the existing Production Sharing Contracts which is long overdue.
He called on stakeholders to adopt integrated approach towards resolving some of the challenges of the industry in Nigeria.
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