Oil, Gas Shareholding Structure Not Affected As NNPC Restructure JVs Into IJVs

The Nigeria National Petroleum Corporation (NNPC) says shareholding structure will not be affected as it restructures it’s current oil and gas Joint Ventures (JVs) into Incorporated Joint Ventures (IJVs).

The Corporations General Manager, Crude Oil Marketing Division, Mr. Mansur Sambo, stated this Monday in Abuja.

Sambo was speaking during a panel session in a conference on Resolving Remedial Issues in the Nigeria Extractive Industries Transparency Initiative (NEITI) audit reports, organised by NEITI with support from Trust Africa.

At the conference, which focused on how to strengthen the current remediation mechanism, NEITI shared a summary of the unremitted revenue, losses and unreconciled differences from operations and transactions in the oil and gas sector with participants.

However, the NNPC, through its Managing Director, Capital, Mr. Godwin Okoronkwo, said in his response to the disclosure, that most of figures were old and some of the issues raised in NEITI’s remediation report were old as well.

Meanwhile the corporation explained that no concerns should be entertained in its restructuring of the JVs oil and gas operations framework it has with International Oil Companies (IOCs) in the country into IJVs, saying it would not affect the shareholding structures of the framework, but would only change the funding processes.

Sambo, stated in his presentation at the session that the JV framework the corporation is negotiating to restructure with the IOCs into IJVs will still retain its shareholding structures of 60 percent to NNPC and 40 percent to the oil companies.

He said that the changes in the IJVs would be in the form of funding, which according to him will mean that partners are allowed to source for funds for their operations outside of what is appropriated by government.

Executive Secretary of NEITI, Mr. Waziri Adio, stated at the conference that Nigeria has done poorly in taking up the remediation issues flagged in NEITI’s audit reports.

Adio, added that NEITI does not have powers to compel covered entities to pay up what they owed the federation. He said NEITI often relied on other government agencies such as the Central Bank of Nigeria (CBN), Federal Inland Revenue Services (FIRS) as well as the Department of Petroleum Resources (DPR) amongst others, to play their roles in pushing for the recoveries of the revenues.

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