Corporation plans to privatise pipelines

chika ebuzor

December 14, 2015 7:46 AM

The total network of crude-oil pipelines in Nigeria, is estimated to be around 5,000 kilometers.

The Nigerian National Petroleum Corporation (NNPC) has revealed that it will privatise crude-oil pipelines to enable the corporation fund its Joint Venture partnerships between international oil companies (IOCs) in Nigeria.

According to the minister of state for petroleum resources and group managing director of NNPC, Ibe Kachikwu,“The new model is that refineries would now buy their own crude oil, refine it and make remittances to the Federal Account Allocation Committee (FAAC). They would operate a semi autonomy system that would enable them to run in a profitable manner."

He also said “I will engage the IOCs to stand up and get counted in the area of best environmental practices in 2016. This initiative would help the IOCs to maintain a cordial relationship with the communities where they operate and the communities too would be satisfied with the efforts at the end of the day."

Kachikwu said this move will reduce pipeline vandalism and increase efficiency in the supply of petroleum products.

Read: Corporation ignores House of Reps directive

The Nigerian National Petroleum Corporation (NNPC) on Tuesday in Abuja conducted the public opening of bids tendered by Nigerian and international companies for the purchase of Nigeria’s crude oil grade.

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chika ebuzor