Nnpc

[hispy99]

FG to float NNPC?s equity in capital market this year

[prince dagbolu]

What has changed in just two years for them to want to privatise it again.

[olusolakemmy]

hmmmmmmmm, calamity looming!!!!!
well if well manage it might be good for the economy but ..................
i fear oooo

[solainvest]

Originally Posted by olusolakemmy

hmmmmmmmm, calamity looming!!!!!
well if well manage it might be good for the economy but ..................
i fear oooo

The government will be making a big mistake if it is done this year considering the economy outlook (world & Nigeria).

I stand to be corrected but if the Presidency is quoted, it will fall like a pack of cards!

[zainabusman]

Originally Posted by solainvest

The government will be making a big mistake if it is done this year considering the economy outlook (world & Nigeria).

I stand to be corrected but if the Presidency is quoted, it will fall like a pack of cards!

Journalists like to sensationalize.

NNPC being privatised is a long way off. First the National assembly has to approve the bill restructuring NNPC and making it a limited liability company. Some years down the line the govt can decide to privatise.

I dont know whether the bill is available online but the above is a summary.

At the moment, our capital market cannot handle the privatisation of NNPC. The entire Market cap is currently less than $50 billion. I reckon NNPC will be worth more than that.

[mosbe]

Originally Posted by zainabusman

Journalists like to sensationalize.

NNPC being privatised is a long way off. First the National assembly has to approve the bill restructuring NNPC and making it a limited liability company. Some years down the line the govt can decide to privatise.

I dont know whether the bill is available online but the above is a summary.

At the moment, our capital market cannot handle the privatisation of NNPC. The entire Market cap is currently less than $50 billion. I reckon NNPC will be worth more than that.

Where will Nigeria be Heading to???

[hispy99]

Guardian Newspapers

[citizen]

allAfrica.com: Nigeria: FG Sacks NNPC Boss, Yar'Adua (Page 1 of 1)

[hispy99]

http://www.reuters.com/article/OILPR...31640820090121

[moneymoney]

Originally Posted by hispy99

New Nigeria oil firm to rival Petrobras, Saudi Aramco
Wed Jan 21, 2009 9:33am GMT

By Camillus Eboh

ABUJA, Jan 21 (Reuters) - The new head of Nigeria's state oil firm NNPC has pledged to press ahead with reforms that would break up the company into profit-driven units able to operate like counterparts in Brazil, Malaysia or Saudi Arabia.

Mohammed Sanusi Barkindo, a former acting OPEC secretary general who was appointed to head NNPC last week, said the reforms would create around seven new institutions better positioned to take advantage of growth in the energy sector.

"We will capitalise our operations and give financial autonomy to our subsidiaries for the development of the oil and gas sector as well as the nation," Barkindo said in a statement issued by NNPC late on Tuesday.

He said the reforms would allow NNPC to operate in a similar way to former Brazilian oil monopoly Petrobras (PETR4.SA: Quote), Malaysia's government-owned Petronas -- which has dozens of subsidiaries -- or Saudi Arabia's state oil giant Saudi Aramco.

The restructuring will allow NNPC's subsidiaries to raise funds by investing in the capital markets instead of relying on government revenues as they do currently, a bureaucratic process which has slowed the development of the Nigerian oil industry.

Funding shortfalls at NNPC's joint ventures with foreign oil partners including Royal Dutch Shell (RDSa.L: Quote) and Exxon Mobil (XOM.N: Quote) have hampered their ability to fund new projects.

"Nigeria's expansion of its potential crude oil reserves has been stalled by the government delay in providing cash to the international oil companies for cash calls," said Wale Tinubu, chief executive head of Nigerian energy firm Oando (UNIP.LG: Quote).

"Drilling programmes have been delayed, major expansion programmes have been delayed ... The reform would only allow even more exploration and development to be done and reserves to be improved," he told Reuters in an interview in Lagos.

If the restructuring went ahead on time, it could increase Nigeria's production capacity to around 4 million barrels per day (bpd) by the middle of next decade from around 3 million bpd forecast by 2010, Tinubu said.

The reorganisation of NNPC is expected to lead to the sale of assets as part of measures to fund expansion, possibly including the country's four underperforming oil refineries.

Legislation on the proposed reforms is expected to go before parliament soon. Barkindo was appointed by Nigeria's new oil minister Rilwanu Lukman, a former OPEC secretary general who is one of the architects of the planned restructuring at NNPC.

Lukman was appointed in December as part of a cabinet reshuffle by President Umaru Yar'Adua in Africa's leading oil producer.

(For full Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com/ )

(Additional reporting and writing by Nick Tattersall, Editing by Peter Blackburn)

...this ppl must be stubbornly insane!!!!

[Michael]

Originally Posted by hispy99

FG to float NNPC’s equity in capital market this year
Tuesday, 06 January 2009 09:47 BADEJO ADEMUYIWA


The Nigerian National Petroleum Corporation (NNPC) will this year lose its state ownership status as it goes to the stock market for Nigerians to subscribe to its equity.

When this is done, the corporation will lose its status as a regulator and cease to make policy but become an operator and become subject as other operators to the rules and dictates of the market.

A major objective of the proposed move which is part of a holistic reform of the oil and gas industry is to subject the NNPC which is seen as a drainpipe on the system to the best accounting and operational standards.

This is part of the expectations from the sector this year and which details is contained in the oil and gas reforms bill currently with the federal lawmakers for the draft committee to defend before February this year. NNPC, like other state owned enterprises, has been in a sorry state becoming a source through which the government bleeds and loses huge revenue due to political interference.

The oil and gas sector reforms committee was set up by the National Council on Privatisation (NCP) in September 2000 during the Olusegun Obasanjo administration. Its main purpose is to transform the nation from oil and gas endowed state to oil and gas producing state.

The committee submitted its report in 2006 but its implementation was delayed due to political interference by some powerful interest groups which are beneficiaries of the current status of the sector.

Mohammed Ibrahim, member oil and gas sector reform implementation committee, who disclosed the transformation of the corporation said the details had been worked out and would be released immediately the draft bill is passed and signed into law.

He assured that Nigeria would have a better and positive oil and gas sector in 2009 pointing out that the new structures evolved for all the current state owned institutions in the sector would shield them from political interference.

“Finally, we are now going to have the Nigerian National Petroleum Company Limited. What we have now is the Nigerian National Petroleum Corporation. It will no longer be a corporation it will become the Nigerian National Petroleum Company Limited.

“It shall now be a limited liability company that shall be governed by the rules of the Companies and Allied Matters Act (CAMA). It is now clearly a limited liability company that eventually would be floated on the Nigerian Stock Exchange,” Ibrahim said.

The implication is that NNPC will be strictly for commercial purpose and cease to play regulatory function. “It shall be strictly limited to a commercial activity; if it makes money fine, if it looses money too bad,” he said.

The corporation currently performs the function of a regulator, operator and designs policies for the oil and gas sector. Ibrahim explained that floating its equity in the capital market would allow the country’s over 150 million people to buy shares in the company though the state will still have some equity in it.

This status, Mohammed said, will minimise the level of interference because it risks closing down if it looses money and pays dividend if it makes money which makes it responsible and under the discipline of commercial governance.

“The moment the bill is passed into law, I can assure you that we have our own plans that would enable us to hit the ground running. If that bill is passed into law today and the president signs the bill into law, in the next minute you are going to see a brand new transformed NNPC hitting the ground,” the oil and gas reform committee member said.

The new NNPC Limited would be basically a holding company with subsidiaries like the PPMC, NPB, and NETCO.

The subsidiaries would themselves be hybrid. For instance, if the PPMC now becomes the new marketing company of the NNPC, it shall not be owned 100 percent by the NNPC Holding Limited.

The PPMC may become PPMC plc with private ownership as some of its shares would be divested to the Nigerian public probably with some private core investors.

“So we would try for NNPC not to own subsidiaries 100 percent until it has the capacity to do so. There may be a period of tutelage that would encourage NNPC to have subsidiary units that are in the hands of private capital, private experience with NNPC representing the state”.

“We will infuse the necessary discipline to prevent or reduce to the barest minimum, political interference which has been a major plank for the failure of the Nigerian oil and gas industry,” Mohammed said.

“The extent or the percentage of equity that shall now be made available to the private sector is yet to be determined. We are in the process of a reform agenda and also the NNPC may in future go into some venture partnership with other private sector holders in setting up new companies”.

It has been long I laughed this much. Who is infusing discipline on who????

[Michael]

Originally Posted by zainabusman

Journalists like to sensationalize.

NNPC being privatised is a long way off. First the National assembly has to approve the bill restructuring NNPC and making it a limited liability company. Some years down the line the govt can decide to privatise.

I dont know whether the bill is available online but the above is a summary.

At the moment, our capital market cannot handle the privatisation of NNPC. The entire Market cap is currently less than $50 billion. I reckon NNPC will be worth more than that.

Is NNPC really a going concern. What exactly do they do? We know they don't refine Petroleum products!!!.They have drilled for Oil in Maiduguri for 14 years and found no Oil. The Only Assets they may have are real estate. Will you consider someone who has worked in NNPC for 10 years as having practical Oil related experience.

[Michael]

Originally Posted by prince dagbolu

Olopaooooo, this could be "Transcorp Mark 2". People should be careful o. Before you buy this one, make sure you read all the pages on the Transcorp thread. As for me, i have learnt my lesson.

In fact, why don't they just give it back to Dangote, Otedola and Transcorp. Afterall, the FGN took NNPC back from the above group just two years ago.

What has changed in just two years for them to want to privatise it again.

If it wasn't such a serious issue, this is really very funny!