The present Nigeria National Petroleum Corporation (NNPC) will be reformed and incorporated as the Nigerian National Petroleum Company Limited (NNPC Limited) to assume a commercial status, the new Petroleum industry Bill (PIB) reveals.<\/p>\n\n\n
The new PlB currently before the National Assembly, the Minister of State for Petroleum Resources, Mr Timipre Sylva, reported after a joint meeting with both chambers of the National Assembly, said that the new bill did not propose the scrapping of NNPC.<\/p>\n\n\n
\u201cIn the revised Petroleum Industry Bill, the Nigerian National Petroleum Corporation will not be scrapped but commercialised in line with deregulation move across all streams in the sector,\u201d he said.<\/p>\n\n\n
According to the new PIB, the minister, after six months of the implementation of the act, will incorporate the NNPC Limited under the Company and Allied Matter Act.<\/p>\n\n\n
\u201cThe Minister shall at 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.<\/p>\n\n\n
\u201cThe government shall subscribe and pay cash for the shares,\u201d it said.<\/p>\n\n\n
It noted that the ownership of all shares in NNPC Limited would be vested in the government at incorporation and held by the ministry of Finance incorporated on behalf of the government.<\/p>\n\n\n
It added that the ministry of finance incorporated in consultation with the government, might increase the equity capital of the company.<\/p>\n\n\n
\u201cShares held by the government in NNPC limited are not transferrable, including by way of sale, assignment, mortgage or pledge, unless approved by government,\u201d it noted.<\/p>\n\n\n
On the objectives of the new NNPC, the bill proposed that the company would carry out petroleum operations in commercial basis.<\/p>\n\n\n
\u201cIt will lift and sell royalty oil and profit oil for commercial fees, payable by government at the request of the regulatory commission and pay the corresponding revenue to accounts indicated by the commission.<\/p>\n\n\n
\u201cAt the request of the commission carry out test marketing to ascertain the value of crude oil and report to the commission,\u201d it said.<\/p>\n\n\n
It said the NNPC Limited would be vested with the rights to natural gas under production sharing contracts entered into prior to the effective date.<\/p>\n\n\n
It noted that upon request of the commission, it would act as agent of the commission for the management of production sharing contract for a fee, based on the profit oil share or profit gas share to government.<\/p>\n\n\n
It added that the NNPC Limited would engage in the development of renewable resources in competition with private investors.<\/p>\n\n\n
\u201cIt will promote the domestic use of natural gas through development and operation in large scale gas utilisation industries, among others,\u201d it said<\/p>\n\n\n
Reacting to the development, Prof. Wumi Iledare, a professor of Petroleum Economics said that the proposed new national oil company in the PIB seemed more of a rebranding of the existing one.<\/p>\n\n\n
\u201cThe new NNPC as a limited liability corporation is not a new thing with respect to transformational thinking for national oil companies.<\/p>\n\n\n
\u201cThere are examples worldwide BP, STATOIL, ENI, TOTAL, and so on,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
The present Nigeria National Petroleum Corporation (NNPC) will be reformed and incorporated as the Nigerian National Petroleum Company Limited (NNPC Limited) to assume a commercial status, the new Petroleum industry Bill (PIB) reveals. The new PlB currently before the National Assembly, the Minister of State for Petroleum Resources, Mr Timipre Sylva, reported after a joint […]<\/p>\n","protected":false},"author":1,"featured_media":24400,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[126],"tags":[254],"class_list":["post-25855","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trade-and-industry","tag-nnpc","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\n