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Funding structure for proposed Petroleum Asset Management Company unclear – NNPC

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Funding structure for proposed Petroleum Asset Management Company unclear - NNPC

The Nigerian National Petroleum Corporation (NNPC) said the funding structure for the proposed Nigerian Petroleum Asset Management Company (NPAMC) in the Petroleum Industry Governance Bill (PIGB) was unclear.

The National Assembly had passed the harmonized version of the PIGB in April after about 18 years it has been in the woods without clear consideration and it was later sent to President Muhammadu Buhari for assent in July.

The bill seeks to establish entities like NPAMC to hold and manage certain petroleum assets on behalf of the government and enter into new exploration and production agreements with other petroleum companies as may be required by the government.

The Group Managing Director (GMD) of NNPC, Maikanti Baru, said this on Thursday while speaking at the 2018 conference of the Association of Energy Correspondents of Nigeria in Lagos.

Read also: ‘Nigeria’s dependence on oil responsible for high unemployment rate’

Baru said the bill was focused on key governing institutions in Nigeria’s oil and gas industry and also aimed at separating the regulatory, policy and commercial roles of public sector agencies.

The NNPC helmsman said the bill also allocated respective roles to agency properly positioned to perform them, stressing the need to clarify the funding pattern for the proposed NPAMC and the Liability Management Company (NPLMC).

Represented by the Group General Manager, Nigerian Petroleum Investment Management Services (NAPIMS), Roland Ewubare, the GMD suggested that the NPAMC’s structure should take the form of an agency rather than a company.

He said that this should be so in consideration of its limited role in the administration of Production Sharing Contract assets as similar institutions across the world were structured as agencies like Petoro in Norway.

 

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