Also, the new NNPC Limited and its joint venture partners would explore the use of incorporated joint venture companies so as to make it viable and more relevant to the economy and the stakeholders.
Besides, the company will be required to declare dividends to its shareholders and retain 20 per cent of profit as retained earnings to grow its business like any other incorporated entity incorporated under the Companies and Allied Matters Act, as provided under Section 53(7) of the Petroleum Industry Act.
Nigerians also expect trasparency in its operations as well as break the monopoly status bring enjoyed by the workers living big and doing little.
In fact oil and gas industry analysts have queried why the Nigerian National Petroleum Company NNPC, for instance, failed to state the amount it spent on fuel importation during in last 12 months, but only providing the amount generated alone without stating what was expended during the time under review.
The Corporation had always bandied budget estimates without the detailed expenditure pattern, particularly in the controversial export of crude and import of refined products.
They further argue that it is a shame for the officials not been able to give the nation the exact amount of litres of refined products being imported while billions of dollars going down the drain as subsidy payments.
Recently the corporation, in its monthly report claimed that it has raked in about N1.7trillion from crude oil sales in the last 12 months.
According to the Corporation’s monthly and financial report for August, the sum was earned from March 2020 to March 2021 after it lifted a total of 108 million barrels of crude oil within the year, at an average price of $43 per barrel.
A breakdown of the report showed that, in March 2020, the oil and gas firm lifted approximately 9, 490mn/b; 11, 437mn/b in April; 5, 113m/b in May; 6,274mb in June; and 8,546m/b in July.
In August, NNPC said, it lifted 8, 546mn/b; 8, 490mn/b in September; 10, 333mn/b in October; 9, 532mn/d in November; and 7, 539mn/b in December 2020.
In January 2021, it lifted 5, 542mn/b; 9, 397mn/b in February, and 7, 553mn/b in March 2021, making it a total of 108 million barrels for the period under review.
The crude, NNPC said, was lifted from the daily allocation for domestic utilization translating to an average volume of 243,650 barrels of oil per day in terms of performance.
Price fluctuations within the period ranged from $25/b in March 2020, to $17/b in April; $25/b in May; $40/b in June; $44/b in July; $55/b in August; $40/b in September; $40/b in October; $43/b in November; and $51/b in December 2020.
In January 2021, crude lifted was sold at $57/b; $64/b in February, and $64/b in March 2021.
But, the corporation had been hiding under the status of sole importer of these products in most cases and government entity shroud some of its activities in secrecy.
Specifically, the corporation claimed that in order to meet domestic product supply requirements, all the barrels were processed under the Direct-Sales-Direct Purchase(DSDP) scheme while no deliveries were made to the domestic refineries for processing.
Group Managing Director (GMD)/Chief Executive Officer (CEO) of NNPC Ltd, Malam Mele Kyari, said at a recent engagement session with business leaders across the company’s value chain in Abuja that they were working to comply with the provisions of the PIA.
He said NNPC is doing everything possible to ensure compliance with the provisions of the Petroleum Industry Act (PIA) with regards to guidelines and timelines for action.
Kyari said that the new company would become operational with the transfer of verified assets from the Corporation to the NNPC Ltd. by the Ministers of Petroleum and Finance.
He explained that with the level of assets available combined with the new fiscal regime, NNPC Ltd. was set to become the number one energy company in Africa, noting that global brands interested in doing business with the new NNPC Ltd. needed to be sure of the company’s asset base.
He added that the success or otherwise of the company depends heavily on how the change is managed.
