FG gives approval for NNPC unbundling

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…debunks rumour of planned hike of petrol pump price

IN its bid at ensuring the smooth running of the oil sector, the Federal Government has finally given its approval next restructuring phase of the Nigerian National Petroleum Corporation (NNPC).
Minister of State for Petroleum Resources, Dr. Ibe Kachikwu disclosed this recently in Abuja, adding that the next phase as approved by the President would see the NNPC broken into four different autonomous profit-oriented companies.
Kachikwu explained that the effect of the restructuring would enable NNPC to focus on individuals who will lead as quasi-managing directors to run the entities with the aim of delivering profits for the organisation.
National Daily gathered that the four firms to emerge after the unbundling are the upstream company, the downstream company, Midstream Company and the refining group holding company.
It was also gathered that all the succeeding companies would operate independently with quasi-managing directors and remit profits and taxes to the coffers of the government.
He explained, however, that there would still be other managing directors at the corporate level.
“A lot of the non-performing but asset-based subsidiaries that we have, we will put them into a venture company where we will begin to help manage them to profitability and hopefully either spin them off ultimately or make them so profitable that we may decide to keep them.
On the issues of refineries and government’s plan to end the subsidy on petrol, he said none of the four refineries is in the best state, “We can get them back because refineries never die as long as you do what you need to do.
“The whole idea is to find the funds, find the right skills that you need and try and deliver above 90 per cent for the refineries”
He also dispelled the misconception that the federal government has concluded plans to increase the pump price of fuel from N87 to N97 a litre from January 2016. “I did not say that refined petroleum products will sell for N97 per litre next year. I said that between a band of N87 and N97 we are going to be looking at prices and today the prices are largely close to N87, so there is no need to change the price,” he said.
The minister noted that to determine the price of petroleum products in future, the Petroleum Products Pricing Regulatory Authority (PPPRA) would undertake quarterly reviews of the crude market situation.