Tag Archives: Oil Sector

All You Need To Know About The Proposed Scrapping Of NNPC, DPR, PPPRA & Single Oil Sector Regulator

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There is an air of upset in the oil sector following the plan by the government to scrap regulatory authorities including the Nigerian National Petroleum Corporation (NNPC), Department of Petroleum Resources (DPR) and Petroleum Products Pricing Regulatory Agency (PPPRA).

This was contained in the draft National Oil Policy document released by the Ministry of Petroleum Resources.

The regulatory bodies will be unified into a single agency to be known as Petroleum Regulatory Commission (PRC).

The PRC will incorporate the activities of the existing petroleum regulatory authorities and will also cover some new regulatory activities not currently covered.

According to the document, the existing “framework was weak, largely ineffective and inefficient, arising from a number of single-issue agencies; overlaps in regulation, gaps in regulation, mixture of policy, regulation and operations; and ineffective regulation.

“Although the agencies generally work well together, their roles, sometimes, overlap and there are significant information gaps within the government as, sometimes, one institution is unaware of what the other is doing.

“At the same time, policy making capacity has been weak, resulting in NNPC and its subsidiaries setting policy and regulation as well as conducting operations in the petroleum sector. The result is an ineffective and inefficient institutional environment in the petroleum sector in Nigeria.

”The new body is also expected to work under the policy supervision of the Minister of Petroleum Resources in order to reduce the inefficiencies in parastatal in the petroleum sector.

The minister of petroleum resources will set and monitor implementation of policies.

“This does not mean that the regulatory authority will report to the Ministry on a day to day basis. The new single regulatory authority will be an operationally independent regulatory institution. The Minister’s involvement will be hands off and just to ensure that the regulatory authority properly carries out its roles of implementing the policy.”

Credit:

http://dailytimes.ng/fg-scrap-nnpc-dpr-pppra-buhari-targets-single-regulator-oil-sector/

Mobil Pulls Out From Nigeria’s Downstream Oil Sector

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United States-based ExxonMobil has divested its 60 percent stake in Mobil Oil Nigeria Plc to Nipco Plc, an indigenous Nigerian downstream oil and gas company.

Given the latest divestment, French energy major, Total, is the only international oil firm that is still operating in the downstream sector of the Nigerian oil and gas industry.

Nipco, in a statement on Wednesday, said the acquisition was agreed with the execution of a sales and purchase agreement with ExxonMobil.

Nipco Managing Director, Mr Venkataraman Venkatapathy, said, “With the signing, we will start the transition period and initiate the process of obtaining regulatory approvals from the requisite federal agencies – the Securities and Exchange Commission and the Nigerian Stock Exchange.”

The Nipco MD said, “Nipco wishes to express its profound gratitude and appreciation to ExxonMobil for selecting us as the preferred bidder for the acquisition of MON.

“We wish to give every assurance to ExxonMobil that having entrusted us with this invaluable asset, we will ensure full brand compliance with ExxonMobil’s global standards as well as rigorously sustain and follow ExxonMobil’s code of conduct/ethos and operational excellence.”

EFCC Commences Probe On Oil Sector, Allison-Madueke

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The Economic and Financial Crimes Commission (EFCC) has started an investigation into the petroleum sector and the role of former Minister of Petroleum Resources, Mrs. Diezani Allison-Madueke.

The Acting chairman of the EFCC, Ibrahim Magu who revealed the probe of Allison-Madueke and Okonjo-Iweala spoke at the 2016 budget defence session with the House of Representatives Committee on Financial Crimes yesterday .

He said:  “We are investigating the former ministers, Diezani Allison-Madueke and Okonjo-Iweala, as well as the petroleum sector”, in response to a question by one of the committee members.

Earlier, Magu had sought the support of the committee to get a budget of N11.4billion for the EFCC in 2016. Some of the areas where the budget will be needed, according to him, include the completion of the EFCC headquarters complex under construction, training and re-training of staff, recruitment and training of additional 750 staff in 2016, as well as in the area of investigation activities. Earlier, chairman of the House committee, Kayode Oladele had assured EFCC of its support.

Credit: Guardian