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PRESIDENT BUHARI TO SPLIT NNPC INTO TWO….PLANS FRESH BID ROUND FOR OIL BLOCKS

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President
Muhammadu Buhari has finally revealed what will be the fate of the Nigerian
National Petroleum Corporation, saying the national oil company will be divided
into two successor entities under his administration. The
President, who stated this in an interview with journalists in Washington DC
during a four-day visit to the United States, an extract of which was made
available to Saturday PUNCH, explained that the decision would form one of the
key steps of his reform of the country’s oil and gas sector.
The NNPC is
considered a cesspool of corruption and fraud signposted by the non-remission
of revenues from oil sale to the Federation Account. Hence, one of the first
reform moves by All Progressives Congress –led administration is expected to
start at the NNPC.

There had
been insinuations that Buhari would unbundle the NNPC into four companies but
the President, in the Washington interview, said rather than breaking the NNPC
into four companies, it would be divided into two – regulator and investment
vehicle. While one of
the successor companies will be an independent regulator, the President said
the second would operate as an investment vehicle for the country.
He said, “I
am reforming the oil and gas sector, breaking up the NNPC into two parts – the
first will become an independent regulator for the sector, while the second
will act as an investment vehicle for the country.”
Buhari also
said there would be a new bid round for oil blocks in the country, adding that
he favours transparent auction process.
“I will also
end political control of the awarding of drilling and exploration rights by
introducing a system of independent, transparent auctioning for licences,” the
President said.
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