ABUJA, Nigeria – Nigerian National Petroleum Corp. (NNPC) is to transform into 30 profit-making companies in the weeks ahead as part of the ongoing reform of the national oil company. The Minister of State for Petroleum Resources and Group Managing Director of NNPC, Dr. Ibe Kachikwu, made the announcement at a recent forum in Abuja.
“For the first time, we are unbundling the subset of the NNPC to 30 independent companies with their own managing directors,” he said. “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,” Kachikwu said.
The petroleum sector under his watch, he added, would rapidly review the contracting cycle of projects from two years to six months in the upstream, stressing that review of the production-sharing contracts was long overdue.
Kachikwu concluded that, for the Nigerian oil and gas industry to make progress, there is a need for all the stakeholders in the upstream, midstream, and downstream to be on the same page on cost control, contracting, technology, and environmental issues.