Minister says NNPC will be divided into 4 separate companies

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December 18, 2015 1:44 PM

This was disclosed on Thursday, December 17, 2015, by Minister of State for Petroleum and NNPC Group Managing Director, Dr Ibe Kachikwu during a town hall meeting in Abuja.

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The Nigerian National Petroleum Corporation (NNPC) will soon be divided into four separate companies.

This was disclosed on Thursday, December 17, 2015, by Minister of State for Petroleum and NNPC Group Managing Director, Dr Ibe Kachikwu during a town hall meeting in Abuja.

Kachikwu also said that the division had been approved by President Muhammadu Buhari as part of plans to restructure the NNPC.

The four planned divisions are the upstream company, the downstream company, midstream company, and the refining group holding company.

“Right now I have just received the president’s approval to embark on the final phase of the restructuring we are doing,” Kachikwu said.

“That restructuring effort will unbundle this company into four key components: the upstream company, the downstream company, midstream company which is the gas and power company and then of course, the refining group holding company.”

“A lot of the non-performing but asset-based subsidiaries that we have, we will put them into a venture company where we will begin to help manage them to profitability and hopefully either spin them off ultimately or make them so profitable that we may decide to keep them.

“This is the sort of financial model that we are going to be dealing with over the next few months and trying to set up a performance index that is comparable with the very best in the world,” he added.

Kachikwu also said that all four companies would operate independently with quasi-managing directors and remit profits and taxes to the coffers of the government.

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