The Minister of state for Petroleum Resources and Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, has said that the NNPC is to be unbundled into 30 profit making companies with separate chief executive officers in the weeks ahead as part of the ongoing transformation of the National oil company.
Kachikwu made this disclosure at the 25th Oloibiri Lecture series and Energy forum in Abuja with the theme, “Technological Advances in Hydrocarbon Exploration and Exploitation: Solution to Global Oil Price Stability”.
The Minister stated that the NNPC has been moved from a loss position of N160 billion to a loss of just about N3 billion by January 2016. He expressed optimism that the corporation should start making profit by year end.
“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,” said Kachikwu.
The Minister applauded the national assembly on their efforts on the Petroleum Industry Bill (PIB) which he said would go a long way to promoting efficiency in the governance structure of the industry.
He noted that for the Nigerian oil and gas industry to make remarkable progress, there is need for all the stakeholders in the upstream, midstream and downstream sectors to be on the same page on cost control, contracting circle, technology and environmental issues.