Mall. Mele Kyari, Group Managing Director/Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Ltd, has revealed that from July 1, 2022, the company will become a fully Limited Liability Company.
The GMD disclosed this on Friday in Abuja, while speaking at an event where ISO 22301 certificate was presented to the National Petroleum Investment Management Services.
Kyari said, “Enormous work is going on with security agencies and I am optimistic that within two to three weeks, very measurable outcomes will come up so that our businesses can continue.
The GMD admitted that there are some challenges facing the operations of the NNPC, particularly as it relates to pipeline vandalism and crude oil theft which, according to him has reduced crude oil production to about 1.5 million barrels per day.
He, however, said that currently, the crude oil production challenge is being addressed through collaborative efforts between the NNPC, other agencies of government, and security agencies.
Specifically, he said that the Nigerian Navy is currently carrying out serious military operations in the Niger Delta to ensure that oil and gas assets are protected.
Kyari expressed optimism that with the current action of the Navy, the issue of pipeline vandalism and crude oil theft will be brought under control within the next two to three weeks.
He said, “Enormous work is going on with security agencies and I am optimistic that within two to three weeks, very measurable outcomes will come up so that our businesses can continue.
“The Navy is carrying out a massive operation to contain oil theft in the Niger Delta as we speak. Beyond this, as we progress into the future, our company will transit by the 1st of July into a different company that will be governed by the provisions of CAMA and also the PIA and other legislations that are applicable to other companies operating in this space. We know that this is good for the industry and the country.”
The Corporate Affairs Commission had on September 21 last year completed the incorporation of NNPC Ltd in accordance with the provisions of the Petroleum Industry Act 2021.
The PIA was signed into law by President Muhammadu Buhari on 16th August 2021.
Specifically, Section 53(1) of the Petroleum Industry Act 2021, requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of the enactment of the PIA in consultation with the Minister of Finance on the nominal shares of the Company.
With the registration of the CAC, the NNPC Ltd was floated with an initial capital of N200bn making it history as the company with the highest share capital in the country.
