NNPC seals pact to revive shipping coy

NNPC seals pact to revive shipping coy

March 14, 2016

Dr. Emmanuel Ibe Kachikwu
Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has said that talks have reached advanced stage to revive the NPPC Shipping Company.
The Minister disclosed this during an interactive meeting with the joint House of Representatives Committee on Gas Resources, Petroleum (Downstream and Upstream) and Local Content, chaired by Mr. Victor Nwokolo, following controversies trailing the recent unbundling of Nigerian National Petroleum Corporation (NNPC) to 30 companies.
The Minister said it remained regrettable that the shipping company that was established over eight years ago never acquired a vessel since then. According to him, the revitalisation of the ailing shipping company would be handled by the world's largest shipping company.
Recall that NNPC had eight years ago, established NIKORMA, an NNPC/Hyundai Consortium Joint Venture Shipping Company.
On unbundling of NNPC, Kachikwu acknowledged the communication gap between his office and the National Assembly, adding that the concerns expressed by members were legitimate.

He said the "unbundling was used to qualify the sub-sects" otherwise called "divisions", and not companies as would have been applicable to the actual unbundling of the Corporation as stipulated in the Petroleum Industry Bill (PIB).
He assured that the restructuring of NNPC will help in achieving 16 to 18 month self-sufficiency of supply of petroleum products as well as the establishment of the modular type refineries by investors as contained in the recent advert placed by the corporation.
Kachikwu explained that 17 subsidiaries of NNPC had been identified and that additional four were created, adding that the administrative restructuring would help in generating more jobs, profitability and efficiency of various sub-sects of the corporation, including gas and power, property, pipeline and refineries, among others.
He assured that the corporation has no plan to disengage the 10,000 workers on its payroll but added that the administrative restructuring will help to put the 3,000 redundant staff in the competency venture. The lawmakers and the Minister resolved to work harmoniously towards the timely passage of the PIB.
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