PIA: NNPC Ltd operates fully, 18 months after
Oil production hits 1.6bn barrels daily Petroleum company spends N400bn monthly on subsidy
After 18 months of the Petroleum Industry Act (PIA) 2021 and the establishment of the Nigerian National Petroleum Company (NNPC) Limited, the federal government has ended the Nigerian National Petroleum Corporation (NNPC).
Speaking at the final cut over the ceremony of the corporation and the birth of NNPC Ltd at the NNPC towers in Abuja on Friday, Minister of State, Petroleum Resources Timipre Sylva, said it was historic for the transformation of the NNPC into a company.
He said, “The PIA put a long stop date of 18 months from the effective date of the Act as the timeline within which full transfer of assets, interest and liabilities must be completed. It is indeed fulfilling for me as the chairman of the PIA Implementing Steering Committee to cross February 16, 2023 with full sense of fulfillment that the Nigerian National Petroleum Corporation ceases to exist.”
He tasked the NNPC Ltd on ensuring that revamping the moribund refineries and the battle against oil theft must succeed.
The Group Chief Executive Officer of the NNPC Ltd, Malam Mele Kyari, highlighted the prospects that come with the company, especially in oil production.
He said, “As at yesterday, we had crossed the 1.6 billion barrels per day oil production,” noting that the NNPC Ltd will further increase investors’ confidence.
On the domestic gas market development he said, “In another two to three years we will be able to deliver 8bn standard cubic feet (scuf ) of gas to the domestic market. We have a clear line of sight and action plans for that.”
He also said the firm would be prudent in its activities to earn more profit, noting that there would be no more unfair dealing with the partners.
Kyari said that with the PIA, NNPC has resolved over 90 per cent of differences with partners, while working to settle the only one left in court.
Reading the riot act to workers, he also said, “No job is permanent. If you don’t perform I don’t think our trade unions will protect anyone who commits fraud.
“We will also deliver dividends to our shareholders through profit and will do better as an equal opportunity employer of choice,” Kyari assured.
NNPC spends N400bn petrol subsidy monthly
Speaking on petrol subsidy, Kyari said about N400billion was spent to subsidise petrol every month, which is about N202 per litre of petrol.
Kyari said the landing cost of importing petrol three days ago was N315 per litre but the NNPC transfers to the marketers at N113/l.
“Our customers are here. We are transferring to each of them at N113/litre. That means there’s a difference of close to N202 for every litre of PMS we import into this country. In computation, N202 multiplied by 66.5 million litres, multiplied by 30 will give you over N400bn of subsidy every month,” he said.