OrderPaperToday – The Federal Government has dismissed reports that the Nigerian National Petroleum Corporation (NNPC) will be scrapped as part of the provisions contained in the Petroleum Industry Bill (PIB) submitted to the National Assembly.
The Minister of State for Petroleum , Mr. Timipre Sylva, while fielding questions from journalists after an interactive session on Monday with the leadership of the National Assembly, said the NNPC will only be commercialised and not scrapped.
Sylva explained: “We have heard so much noise about NNPC being scrapped but that is not envisaged by the Bill at all. NNPC will not be scrapped but commercialised in line with deregulation move being made across all the streams in the sector comprising of upstream, downstream and midstream.
“We have said that NNPC will be commercialized. But If you are talking about transforming the industry, the only new thing that we are introducing is the development of the midstream, that is the pipeline sector – that sector between the upstream and the downstream which because the the framework was not there has not really developed very well.
“So we have provided robustly for the growth of the midstream sector. Through commercialisation, the required competitiveness in the sector, will be achieved”.
On host communities, the minister said they will largely benefit from the bill.
Also, he noted that Petroleum Equalisation Fund (PEF) and the Petroleum Products Pricing Regulatory Agency (PPPRA) will transformed.
“But I don’t want want to go into the details of the bill until it is read on the floor of the Senate”, he added.
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