We are restructuring, not unbundling NNPC- Kachikwu

Minister of State for Petroleum, Ibe Kachukwu yesterday said the Federal Government is not unbundling but reorganising the Nigerian National Petroleum Corporation (NNPC).

The Minister who spoke to journalists at the Presidential Villa, Abuja said he was concerned about the misconception as the NNPC had not been broken into separate entities. He spoke on the heels of a shutdown by Staff of the NNPC under the umbrella of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Workers had following the news of the unbundling of the Corporation on Tuesday, shut down operations across the country.
Kachikwu had on Tuesday in Abuja, announced the reorganisation of the national oil company, stating that five of the seven operational units will be strictly business-focussed in line with global best practices of national oil companies.

The new units which would each be headed by Chief Executive Officers, he said, include those for Upstream, Downstream, Gas & Power, Refineries, Ventures, Corporate Planning & Services and Finance and Accounts.

However, reacting to the shutdown of the NNPC, Wednesday, Kachukwu said: “We have not unbundled NNPC. We had a press conference yesterday where I explained this.

“What we have simply done is a reorganisation. We have five business entities focus on business: Upstream, Downstream, Refineries, Gas and Power that are there before.

“There is also Ventures that captures all our little companies that were not having proper stewardship. They are run by individuals who report to the GMD.

“The NNPC is still a whole. There is nothing new that has happened.

“I have tried to explain this and I am sure the NNPC workers are members of the family, they will understand. We are going to have a meeting, and they will be made to understand. Perhaps the engagement has not been good enough.

“NNPC has not been unbundled in the sense of breaking up NNPC into distinct institutions.

“I am concerned. I don’t want the industry shut down. I am sure we are going to resolve the issues very soon”.

 

Elizabeth Archibong