The Nigerian National Petroleum Company Ltd will from July 1 this year become a limited liability company whose operations will be fully managed in accordance with the provisions of the Companies and Related Matters Act 2020.
NNPC Ltd Group Managing Director/Managing Director, Mr. Mele Kyari said this on Friday April 1 in Abuja at an event where the ISO 22301 certificate was presented to the National Petroleum Investment Management Services, The Whistler reports.
The event took place in the presence of the Minister of State for Petroleum Resources, Timipre Sylva; NNPC Board Chair, Ms. Margery Okadigbo; NAPIMS Group Managing Director Bala Wunti and other senior NNPC staff.
Kyari said the implementation of the Petroleum Industry Act has made it imperative that NNPC’s operations be run like a private sector business.
He said this means that unlike before when it was in government, the NNPC must become more efficient in its operations so that it can effectively maximize returns on investment for the 200 million Nigerians.
He said continuity is the soul of modern businesses, adding that in line with this concept, NNPC should continue to strive to ensure that it does not go bankrupt.
The GMD admitted that NNPC’s operations face some challenges, particularly with regard to pipeline vandalism and crude oil theft which it said has reduced crude oil production to around 1.5 million. barrels per day.
He, however, said that currently the challenge of crude oil production is being met through collaborative efforts between the NNPC, other government agencies and security agencies.
Specifically, he said that the Nigerian Navy is currently carrying out serious military operations in the Niger Delta to ensure that oil and gas assets are protected.
Kyari expressed optimism that with the Navy’s current action, the problem of pipeline vandalism and crude oil theft will be brought under control within the next two to three weeks.
He said: “A huge amount of work is underway with the security agencies and I am optimistic that within two to three weeks very measurable results will occur so that our activities can continue.
“The Navy is conducting a massive operation to contain the theft of oil in the Niger Delta as we speak. Beyond that, as we move forward into the future, our company will transition by July 1 into a different company that will be governed by the provisions of the CAMA and also the PIA, and others legislation applicable to other companies operating in this area. . We know it’s good for the industry and good for the country.
The Corporate Affairs Commission had on September 21 last year completed the incorporation of NNPC Ltd in accordance with the provisions of the Petroleum Industry Act 2021.
The PIA was signed into law by President Muhammadu Buhari on August 16, 2021.
Specifically, Section 53(1) of the Petroleum Industry Act 2021 requires the Minister of Petroleum Resources to bring about the incorporation of NNPC Limited within six months of the enactment of the PIA in consultation with the Minister of Petroleum Resources. Finance on nominal shares of the company.
With the registration of CAC, NNPC Ltd was launched with an initial capital of N200 billion, making history as the company with the highest registered capital in the country.