04 April 2014, Enugu – The Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mr Andrew Yakubu, on Thursday appealed to the National Assembly to accelerate passage of the Petroleum Industry Bill, PIB.
Yakubu made the appeal during the NNPC Day at the ongoing Enugu International Trade Fair.
Represented by Mr Vitalis Ugochukwu, Executive Director, Operations, Port Harcourt Refineries, Yakubu said the PIB when passed into law would facilitate the competitiveness of the NNPC in the global market.
“The PIB is change legislation which promises to offer our corporation all necessary incentives to enable it excel.
“The bill proposes the incorporation of the NNPC as a limited liability company which will be subject to the Companies and Allied Matters Act,” he said.
Yakubu said that it was necessary for the new NNPC to be run as a pure business concern.
He said that it would enable the NNPC to raise funds from the capital market and pay dividends to its owners.
The bill, he said, would separate the Nigerian Gas Company into two entities, Nigerian Gas Transmission Company and the Nigerian Gas Marketing Company.
“In the same vein, the current PPMC will be split into two entities, namely the National Transportation Logistics Company (NTLC) and the Product Marketing Company (PMC),” he said.
Yakubu said that while the NTLC would be wholly owned by government, the PMC would be wholly owned by the NNPC Ltd.
“At the same time, the NNPC will shed its current regulatory role and focus on the business of exploration, refining and marketing of petroleum products,” he said.
He said that it had become expedient for Nigerians to partake in the actual production of hydro-carbon.
“It is a welcome development because we will have more value for hydro-carbon and understand what other multi-national companies are doing in the crude oil business.”
Yakubu said the PIB bill made provisions for development of gas for the domesticate market through the combination of obligations set by the Petroleum Inspectorate and Favourable Fiscal Provision.
“Gas contributions to the world energy mix are growing faster than can be imagined, and particularly in Nigeria.
“Gas production offers the potential to grow Nigeria’s Gross Domestic Product (GDP),” he said.
Yakubu said that it was the desire of the NNPC to transform into a high performance and join the league of some national oil companies that were classified as International Oil Companies.