The Nigerian National Petroleum Corporation (NNPC) is to be “unbundled” into 30 profit-making companies with separate managing directors in the weeks ahead as part of an ongoing transformation of the national oil company, according to the Minister of State for Petroleum Resources and NNPC Group Managing Ibe Kachikwu.
Commenting on the changes, Kachikwu said in an NNPC statement:
“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.”
The minister added that he expects the corporation to start making profit by year end and 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.
Kachikwu said that the petroleum sector, under his watch, would rapidly review the contracting cycle of upstream projects from two years to six months, stressing that efforts are in “top gear” to review existing production sharing contracts. He also emphasized that for the Nigerian oil and gas industry to make “remarkable progress”, there is need for all stakeholders in the upstream, midstream and downstream sectors to be on the same page on cost control, contracting circle, technology and environmental issues.
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