Government unveils new oil and gas policy; restructures oil sector operations, NNPC
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Aug 30, 2007, 18:56

The Federal Government has announced a new oil and gas policy.

These were announced after the August 29 Federal Executive Council (FEC) meeting held at the State House, Abuja.
As part of implementation strategy for the new policy, government has initiated a comprehensive restructuring for the country's oil and gas sector.

Under the new policy

• The Ministry of Energy is now scrapped and is being replaced with the National Petroleum Directorate (NPD).

• The Nigerian National Petroleum Corporation (NNPC) will now be replaced with the National Oil Company (NOC).
Other oil industry bodies being restructured include

• The Department of Petroleum Resources (DPR) which will now be replaced with an autonomous entity called Petroleum Inspectorate Commission (PIC)

• The present Pipeline Product Marketing Company (PPMC) will now operate as Petroleum Product Distribution Authority (PPDA).

• The National Oil and Gas Assets Holding Company (NOGAHC) will replace the present National Petroleum Investment Management Services Company (NAPIMS).

Government also raised a committee to implement the National Oil and Gas Policy. The panel, known as the National Energy Council and chaired by President Yar’adua, is charged with the emergency implementation of the National Oil and Gas Policy for a period not exceeding six months.

Other members of the committee include Vice President Goodluck Jonathan (Vice Chairman), Ministers of State for Energy (Petroleum, Gas and Power), Ministers of Finance and National Planning, the Honorary Special Adviser on Energy, Dr. Rilwanu Lukman, the Attorney-General and Minister of Justice, the National Security Adviser (NSA) and four others to be appointed by the President and a secretary.

Other FEC decisions include:

• The approval of N785.5 million and N92 million respectively for the provision of electricity supply and upgrading of the lighting system at the Port Harcourt International Airport.

• N166.790 million approved to purchase 33KVA cables for the Murtala Muhammed International Airport, Ikeja.

• The stoppage of the disbursement of capital expenditure of the previous year in the succeeding year by agencies. The new finance policy forbids any ministry or agency from spending money, especially capital budget earlier earmarked for projects in the previous year in the new year.

Minister of State for Energy (Petroleum), Mr. Odien Ajumogabia (SAN) briefed the press after the FEC meeting.

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