By: Ross Alabo George<\/p>\n
If her key accomplishment is making sure that a major oil producing
\ncountry like Nigeria has petroleum products in filling stations around the
\ncountry and the long queues disappear, then, the simple truth is that we
\ndo not need her. If all she does is make sure that our crude oil is
\nshipped into foreign lands as raw materials that create jobs abroad,
\nperpetuating poverty at home, then she deserves nothing but spite. If she
\nwas listed in the New York Stock Exchange, her value will be less than a
\ndollar. The NNPC has become a big-for-nothing enterprise.<\/p>\n
For over three decades, the NNPC has operated at a loss, and has not
\ncontributed a dime (from its profits) to the national coffers from all its
\nmultibillion dollar operations. The corporation has suffered from
\nvisionless leadership and poor management.<\/p>\n
When President Goodluck Jonathan appointed Ms. D. Allison-Madueke as
\nminister of petroleum resources, it was because the president wanted her
\nto deploy her years of industry experience and the content of her glorious
\nresume into productive leadership. Nigerians looked forward to rapid
\nreforms in a sector that has become the cash cow of the nation. So far,
\nthe story has been that of colossal disappointment. I am sure that the
\npresident is deeply disappointed about the sorry state of the petroleum
\nministry and the NNPC.<\/p>\n
Ms. Diezani Allison-Madueke is the most powerful minister of petroleum
\nthis country has ever had. Before her, Prof. Tam David-West used to be man
\nthat held that ‘title’. Prof. David-West doubled as the chairman of NNPC
\nboard of directors, and no other minister of petroleum after him ever did,
\nuntil Ms. Madueke demanded to be, and got the nod to become.<\/p>\n
With that power, David-West signed the contract for the second Port
\nHarcourt refineries, pipelines, and storage facilities across the country.
\nIn fact local gasoline production exceeded local demands. Minister
\nDavid-West, with the support of General Mohammed Buhari laid the
\nfoundation for the petroleum industry we have today, and nothing much has
\nchanged, in terms of structure, since David-West left as minister.<\/p>\n
The Petroleum Industry Bill (PIB) was to be the flagship initiative of the
\nJonathan administration, but the political intrigues seem to have
\noverwhelmed the minister. Some senators from the South-South Region
\nquietly express their concern about the slothful manner and indifference
\nwith which the bill has been handled. They are disappointed that the
\nminister has not been able to galvanize the required support of
\nstakeholders.<\/p>\n
More worrisome is their complaint that the presidency and the PDP has not
\ncompletely deployed its weight on the matter. The PIB falls short of
\nreforming the most critical organization of the industry. So, even when
\npassed into law, the PIB will serve more as reinforcement to the existing
\nregulatory framework, community participation and royalties. The PIB would
\nnot reform the NNPC.<\/p>\n
The NNPC has no vision. It is a national enterprise that has not grown for
\ndecades and continues to depend on crude oil sales solely for its revenue.
\nNNPC has no major profit yielding investment locally or internationally.
\nIts subsidiaries, which are potentially viable groups on their own, have
\nbecome mere departments of a sluggish behemoth. Most of the NNPC’s
\nsubsidiaries except the NPDC (credit of Ms. Diezani) operate at a loss,
\nand this has been the case for decades.
\nRussia is the World’s number one oil producing nation. It dwarfs Nigeria
\nin both exports and reserves. However, Russia does not just depend on
\nsales from crude oil. It leverages on its comparative advantages in
\npetroleum, and expands its frontiers globally.<\/p>\n
Bashneft is an independent state-owned Russian oil company. It is one of
\nthe largest producer of oil products in Russia. The company operates 140
\noil and natural gas fields in Russia and has an annual oil production of
\n16 million tonnes. Bashneft owns three oil refineries located in Ufa with
\na combined capacity of 820,000 bbl\/d (130,000 m3\/d) and 100 petrol
\nstations.<\/p>\n
After three decade, the NNPC is struggling to fix its 3 refineries, while
\nother oil producing nations have transformed their state-owned oil
\nenterprises into profitable ventures.<\/p>\n
Venezuela is in many ways like Nigeria, the state-owned PDVSA is the
\ngovernment cash cow, in fact to be empoloyed in the PDVSA you had to be
\nloyal to the Chavez revolution. Despite that extent of politicization ,
\nthe PDVSA has been profitable and venturing beyond the shores of the
\nWestern hemisphere. In 2007, PDVSA bought 82.14% percent of Electricidad
\nde Caracas company from AES Corporation as part of a renationalization
\nprogram.<\/p>\n
Citgo Petroleum Corporation, USA is 100% owned by PDVSA.\u2013 PDVSA owns a 50%
\nstake in Nyn\u00e4s Petroleum, Sweden. Until April 2008, PDVSA was the sole
\nowner of Bahamas Oil Refining Company (BORCO), Bahamas. Hovensa LLC
\nrefinery, US Virgin Islands \u2013 Hovensa is jointly owned by PDVSA and Hess
\nOil Virgin Islands Corp. PDVSA was a 50% owner of Ruhr Oel GmbH, the other
\nhalf belonging to BP’s German unit Aral AG. PDVSA sold its part to
\nRussia’s Rosneft on October 2010, raking in profit shared with Venezuela.<\/p>\n
Gazprom, was created in 1989 when the Ministry of Gas Industry of the
\nSoviet Union transformed itself into a corporation, keeping all its assets
\nintact. The company was later privatised in part, but currently the
\nRussian government holds a majority stake. In 2011, the company produced
\nabout 513.2 billion cubic metres (18.12 trillion cubic feet) of natural
\ngas, amounting to more than 17% of worldwide gas production. In addition,
\nGazprom produced about 32.3 million tons of crude oil and nearly 12.1
\nmillion tons of gas condensate. Gazprom’s activities accounted for 8% of
\nRussia’s gross domestic product in 2011.<\/p>\n
Gazprom has controlling shares in over 300 major business subsidiaries,
\nacross over 50 countries. Mostly in oil and gas, and energy. Gazprom
\nbusiness empire extends to Nigeria. Nigaz is a joint venture between the
\nRussian gas company Gazprom and the Nigerian National Petroleum
\nCorporation. Nigaz was established in 2009. It plans to invest US$2.5
\nbillion to build oil and gas refineries, pipelines and gas power stations
\nin Nigeria.<\/p>\n
The reforms the NNPC need are those that will re-establish it as a
\nprofitable venture. The whole idea of Transcorp Plc is what the NNPC is
\nsuppose to be. It should be investing in Telecommunication, Energy, Solid
\nMinerals, Transportation and even Education.<\/p>\n
Why are our refineries not working when the monies the NNPC claims it
\nspent importing fuel can buy the NNPC at least four good refineries in
\nEurope? It is simply because the NNPC is run like a ministry rather than
\nan enterprise.
\nThe NNPC cannot manage a refinery when its contemporaries across the globe
\nare acquiring such assets. A ministry does not run a business.<\/p>\n
But when an enterprise has been running at a loss for over decade, the
\nquestion the president must ask is if such an enterprise should remain the
\nway it is. The PIB will mean nothing if the NNPC remains this way. Time to
\nreform the NNPC is now. She is finished!<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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