I see you finally made the headlines with your project. Congratulations. Seems your efforts are being welcomed by the Nigerian government and populace. Please keep us up to date on how it goes. I will sign up on your website.



Nigerians abroad plan mega firm to run refineries, power plants

From Laolu Akande (New York) and Yakubu Lawal (Lagos)

NIGERIAN professionals abroad have offered to work with the Federal Government to realise its goal of a viable oil and gas and energy sector.

For a start, they have proposed to float a public quoted company with global outreach to set up 24 refineries and generate 50,000 megawatts into the national grid.

The professionals, who operate under Nigerians for Super Energy based in Houston, United States (U.S.) said that the country needed about $29 billion to have a functioning energy sector.

They suggested that the government should provide $15 billion of the funds while Super Energy and its partners would source for the balance.

In a statement released in Houston and signed by the group's co-ordinator, Mr. Joe Inyang, they said that similar efforts in Venezuela and Brazil had helped to reposition their energy sector.

Apart from working with the government to realise the twin-goals, the experts are collaborating with the National Union of Petrol and Natural Gas Workers (NUPENG) to ensure that the local people fully participate in the project.

Meanwhile, three oil firms' chiefs have expressed different views on the sweeping reforms the government effected in the oil and gas sector on Wednesday.

While some called for caution, others canvassed adherence to due process, particularly in the scrapping of the Nigerian National Petroleum Corporation (NNPC).

The Nigerian experts defined their plan to build 24 refineries with a global reach around what obtained in Venezuela, where there was a similar reform of its energy sector.

Inyang, said that "due to the policies of Venezuelan oil company, PDVSA, the Venezuelans are able to enjoy $0.19 per gallon or N6.12." The statement said theVenezuelan oil firm, focussed not just on the crude oil export business but on the global petroleum and chemical sector.

The statement recalled how the Venezuelans invested in refining and retail business in their country and almost all their export markets, adding that "today PDVSA processes 3.3 million barrels daily through 24 refineries: six complexes in Venezuela, one in the Caribbean, eight in the U.S. and nine in Europe."

Nigerians for Super Energy also noted a similar plan carried out by the Brazilian oil company, Petrobras.

They recommended three strategic steps to revolutionise the Nigerian oil sector. They are:

* NNPC now National Oil Company (NOC) should become a government/public firm with its shares allocated to Nigerians. This will provide the company with a new direction and ownership need for the global challenges;

* NNPC should with the aid of government funds buy (outright or major) shares in refineries in Africa, China and U.S.; and

* Build four refineries and retail outlets to take care of the local demand as estimated for 2010 to put to rest the fuel challenges in the nation.

"This will provide us with immediate source of refined products, opportunities to train our people and earn currency. Best of all, this does not need the 18 to 24 months to build a refinery. This will also provide us a stop-gap measure until we build more refineries. It is all about added value and we need to start doing that", they said.

For the electric plan, the U.S.-based Nigerians said 50,000 megawatts in a well-planned power grid was what the country needed.

Inyang said that given the Nigerian population, "the goals (15,000MW, 20,000MW, and 30,000MW) currently proposed in different political and business circles will not take care of latent electrical demand."

Continuing, the group said: "In 1999, we estimated a goal of 4,000MW and 5,600MW, we have reached those goals but still not able to survive disruptions to the power grid. South Africa with a population of 47 million generates 36,000MW, Brazil with a population of 188 million generates 90,000MW and South Korea, which has a population 49 million generates 43,833MW. Nigeria with a population of 140 million will need to generate 67,021MW to be at par with Brazil, the lowest per capita among the three countries."

According to their plan, based on the current estimates of 10,000mw, Nigeria would need 40, 000MW meaning 1,100MW per state and Abuja.

The group said even though some states might not be able to generate this amount due to logistics or cost, they could join with others to meet their goal, while some states like Lagos would need to double or triple that amount.

They also proposed that part of excess crude funds should be invested in power generation and transmission, while all states, Abuja and local councils contribute a percentage of their net worth to the projects. In addition, land for projects should be provided by states and local councils.

Similarly, banks should be encouraged to invest a percentage of their net worth, while corporations and individual investors stake their resources in the projects with a strong push for public stock participation.

In a written support to the plan of the Nigerian experts, Mr. Peter Akpatason, President of NUPENG, said the union "welcomes the ideas of Nigerians for Super Energy. Sincerely speaking, I think those of us at home should appreciate it more than Nigerians in Diaspora."

The NUPENG chief added that due to the "inexplicable" low level of energy generation and supply, the cost of doing business in Nigeria had become so prohibitive that potential investors were scared of coming to the country while others were reducing their work force or quitting business outright.

NUPENG, however, insisted in its own contribution to the campaign that some practical solutions must be tabled to manage what is called "the problems of NNPC before using it as a vehicle to deliver the policy of 24 refineries with active participation of the state."

The three operators, who spoke with The Guardian on the matter yesterday, believed that NNPC could only be scrapped through legislative process as it was established through an Act in 1977.

Those, who spoke on the reforms with The Guardian were the Chief Executive of International Energy Services Limited, Dr. Oladiran Fawibe, former Group Executive Director of NNPC and senior executive, Capital Alliance, Mr. Oladele Afolabi and the Managing Director of Platform Petroleum Nigeria Limited and former President, Nigerian Association of Petroleum Explorationists (NAPE), Mr. Austin Avuru.

While Avuru believed that the exercise would take Nigeria nowhere because it would worsen the bureaucratic process in the industry, Afolabi urged patience.

"This is creating more bureaucratic processes, restructuring the 11 subsidiaries of NNPC to three and creating two layers of bureaucracy," he said.

Afolabi wanted analysts to exercise caution, pointing out that government, which started the process knew what it wanted for the country.

Fawibe believed that government had taken the right step in the right direction, considering the process through which the reform emerged.

Avuru asked whether the new focus would ensure that the refineries and petro-chemical plants work efficiently.

Rather than carrying out this holistic reform, Avuru said the government should focus on replicating the kind of arrangement that now runs in the upstream sector, where the government and the foreign oil firms' operators collaborate.

Avuru said the government must first prepare a bill to the National Assembly to wind up NNPC and prepare it for the emerging firms.

On his part, Fawibe said without a proper legislative process, no company within and outside the country, would do business with the NNPC or the successor firms.

Fawibe however, commended the autonomy granted the Department of Petroleum Resources (DPR) to operate as Petroleum Inspectorate Commission (PIC).

Thanks Naijalove for sharing this quintessenstial piece of information with us. :) I pray that this will come true!

Thanks Naijalove for sharing this quintessenstial piece of information with us. :) I pray that this will come true!

You are welcome. The man seems to have plans and he has been running a campaign. I was just about to ask him a week ago if he was participating in the Energy Emergency council. I am happy his work is yielding some fruits.

Great News. :applause: :applause:

I hope the government will endorse the initiative.:cheers2:

Congratulations, Jbisub your efforts are finally bearing fruit.


Wish you all the best, Mr Energy.:)

Let me express my opinon on this with words of the very respected former german chancellor Helmut Schmidt:

If you have visions, you should consult a doctor.

Let me express my opinon on this with words of the very respected former german chancellor Helmut Schmidt:

If you have visions, you should consult a doctor.

And if you have no visions, you have no aspirations and hence no future.

Tell me one successful country or city that wasn't built upon visions.

Dubai is a city built upon visions, The USA is a country built upon visions.

I say if you have no dreams, you should see a surgeon.:lol: :lol: :lol:

Tbite, naijalove, Matthias Offodile:

Thanks for you support. This is only the first step as you can see from this article this idea on the NNPC has been around. There are people that do not think it is beneficial to them because they are making a killing at our expense. So compatriots let us focus on making it come true!!! Anyone that does not believe show them what Donald Duke (http://nigeriansforsuperenergy.com/phpBB3/viewtopic.php?f=3&t=17&sid=2fc28ec3bd33231d5e2808499898bfbd) did with one of the smallest budgets!!!
We need to believe we can make the change as a group. "DEMOCRACY is for the most proactively vocal and organize people." The laws have to be changed and the more people that contact their elected official, spiritual and traditional leader and organizations the better we can fully change the country. Mr. President cannot do it alone.
We want everyone to spread the word to everyone you know or find their contact information (family, friends, acquaintances, elected officials, spiritual and traditional leaders, organizations, and comments to all news media, online forums and blogs) and tell them to do the same. We have been bless it is time we receive it.

Again. Thank God!!! Our Wishes are coming true... This is the "One small step... for 35% of the Black people in the world. more steps to go!!!! We will continue to play our part by bring all Stakeholders as redefined in " Stakeholders of Nigeria's Energy Rise A strategic redefinition of stakeholders in the Nigerian Energy sector" (http://nigeriansforsuperenergy.com/phpBB3/viewtopic.php?f=3&t=26&sid=2fc28ec3bd33231d5e2808499898bfbd)
If you need a package to send out. Contact us at joe@nigeriansforsuperenergy.com

God Bless Nigeria!!!!

NNPC Restructure Saves Billions in Cash Calls
By Tunde Rahman Additional reports from agencies and analysts, 09.03.2007

Behind the News

The recent plan to restructure the Nigerian National Petroleum Corporation (NNPC) may bring Nigeria a step closer to reducing corruption in and pave the way for a mega state-owned oil company along the lines of those in Saudi Arabia, Indonesia and Brazil. The talk about corruption in the management of oil in Nigeria, Africa’s largest oil producer and sixth largest oil exporter in the World has been commonplace. In its thirty years of existence, NNPC has been plagued by allegations of corruption that range from politically motivated arbitrary awards of oil blocks and contracts, and often intentional mismanagement of the nation’s four oil refineries, and a lack of transparency in the nation’s crude accounts.
Analysts say that the restructuring may allow the newly created Nigerian Petroleum Company (Napcom) to gain better access to capital markets, since it would function more as a state-owned oil company rather than as an overarching government agency. Being accountable to international investors and bankers would also mean that the company would be required to keep more accurate and complete records of its activities. However, by far the most important development would be the scrapping of cash calls paid yearly by the Federal Government to meet its share of the cost of production in its joint ventures, a development which could save Nigeria an average of $5 billion annually. Last year, of the budgeted $4.8 billion for cash calls, NNPC could only pay $3.2 billion and the shortfall was sourced through “alternate financing.” It is expected that the new NAPCOM in raising finance against its assets would be far more prudent and efficient in resource management and deployment
President Umaru Yar'Adua's senior advisers made up of Rilwanu Lukman, Emmanuel Egbogah and Odein Ajumogobia are believed to be in favour of modeling the new national oil company on a Saudi Aramco-type structure, “said Sebastian Spio-Garbrah, an analyst at the New York-based Eurasia Group. ”Whether this means that the government may consider buying out its joint-venture partners the way Saudi Arabia did in 1980 is not yet clear.”
About 95 percent of NNPC’s projects are funded through joint ventures.
Saudi Aramco, now the largest oil company in the world, was created in 1933 when the Saudi government signed an agreement to allow Standard Oil of California to explore for oil. In the 1970s, the government acquired a 25 percent stake in the company which was then known as Aramco and increased it to 100 percent by 1980. Saudi Aramco turned itself into a global player that owns a fleet of tankers and invests in refineries and distribution projects in other countries. THISDAY checks reveal that the Yar’Adua administration is still looking at a number of options in either buying out its Joint Venture Partners or reducing its equity holding in joint ventures altogether in a manner that will benefit critical stakeholders. The challenge will be in unbundling NNPC into production, down stream and assets holding companies as most of its finances are intertwined. First, they would need a cross debt matrix to determine who is owing what and to whom such that the unbundling if its to succeed will have to be a thorough, painstaking exercise that may need expertise with global reach.
Some critics of the new plan say that it may be a way for the Yar’Adua administration to tighten its grip on Nigeria’s oil sector, which accounts for 85 percent of foreign exchange earnings and 60 percent of government revenue. For the time being, Yar’Adua, like his predecessor Olusegun Obasanjo, has sought to keep control of the country’s cash cow by keeping the energy portfolio.
The new model, which splinters NNPC into five units, is likely to increase pressure on foreign operators, especially those that signed lucrative deepwater production-sharing contracts with the government during the 1990s.
“Whether the new national oil company seeks to become the dominant player in Nigeria's oil patch or becomes just another competitor to Shell, Exxon, Total and Chevron in the Niger Delta, the net effect of its presence may very well be tougher terms for foreign operators, but also a more transparent bidding process and regulatory environment,’’ Spio-Garbrah said in an analyst note.
Under the new plan, Napcom’s finance will be separate from the government’s and the company will also oversee its own funding through the financial markets. ”Recapitalizing will make us more competitive,” said an NNPC official.
Yar’Adua has pledged to reform the energy sector and observers note that the reforms proposed last week have been under consideration for the past seven years. The promise to reform NNPC was among those included by the Nigerian government in its May 2007 report to the International Monetary Fund on performance under Nigeria’s policy support instrument (PSI).
Plans for restructuring were first announced in 2000 by the Oil and Gas Reform Committee. Former president Olusegun Obasanjo rejected the findings, according to Thomas Pearmain, an analyst with Global Insights, a U.S.-based firm that provides economic and political analysis.
“The changes to the country’s oil sector announced by President Yar’Adua appear to be far reaching and are much needed,’’ Pearmain wrote in a report. ``The root and branch reform is exactly the type of overhaul the petroleum sector needs.”Nigeria is the largest producer of crude, the 11th largest producer of crude oil in the world and the sixth-biggest producer in the Organization of Petroleum Exporting Countries.
A successful reform of Nigeria’s energy sector would bolster the international confidence in the Yar’Adua administration. The European Union last week expressed “no confidence’’ in the April 2007 presidential election.
The new model, which includes an independent regulator, a downstream unit and an assets holding company, is recognition of the failure of NNPC, according to some analysts.
Though NNPC controls about 1.4 million barrels a day of production, the government is consistently in arrears in funding joint venture projects. Subsidizing domestic petrol prices and maintaining a very ``opaque’’ accounting system also squeezed the coffers, analysts said.
Still, critics cast doubt on whether the newly created National Energy Council will be able to complete the large-scale changes by the proposed Feb. 2008 deadline.
One consequence of the new set up may be widespread job losses, the threat of which drove national labour unions to stage a four-day strike in June that halted commerce and shut down petrol stations. Yar’Adua eventually ceded to most of the demands of the unions. Another showdown may be likely if massive jobs cuts, which observers say are needed to stem corruption, are undertaken.
The main challenge will be to ensure that the new Napcom won’t replicate the flaws of old NNPC. The state companies of Venezuela, Brazil and Indonesia do what NNPC was originally intended to do: add value to the State. NNPC instead fed into a culture of corruption that has made public administration in Nigeria so difficult.
To foreigners seeking to do business here, the “oil industry” and “corruption’’ are terms often inextricably linked. As recently as 2003, Nigeria ranked 132 out of 133 countries in the Berlin-based Transparency International’s annual corruption perception index. Last year, the country catapulted to 142 out of 163 nations, due largely to reforms led by former Finance Minister Ngozi Okonjo-Iweala.
The operating environment in Nigeria has had dire consequences for many oil-services firms, particularly those in the U.S. that must comply with the Foreign Corrupt Practices Act. And, until recently, companies in Europe were able to tax deduct bribes paid to Nigerian officials.
Transocean Inc., the world’s largest offshore driller, Willbros, GlobalSantaFe Corp., Tidewater Inc., Noble Corp., Halliburton and Baker Hughes have all been recent targets of U.S. Justice Department probes in connection with corruption in Nigeria.
U.S.-based companies are beginning to seek British, Australian and other non-U.S. managing directors to avoid the risk of U.S. nationals having to face criminal charges for violating the Foreign Corrupt Services Act when they return home from Nigeria. Last month, Jason Steph, a 37 year-old former employee of Willbros, was charged with conspiracy to pay $6 million in bribes to help his company secure pipeline business from NNPC.
Workers of some foreign-based oil services have complained that the operating environment in Nigeria makes it virtually impossible to do business without being in violation of some aspects of Foreign Corrupt Practices Act. That, combined with a frustration about the government’s failure to curb the kidnapping of several hundred expatriate and Nigerian nationals over the past year, have led to frustration with regard to doing business in Nigeria.
Another challenge for the new structure will be overhauling the nation’s four ailing refineries which NNPC new CEO, Abubakar Yar’Adua (no relation of President Yar’Adua) has staked his future on. The government failed to privatise the Kaduna and Warri refineries after Bluestar consortium, led by Aliko Dangote and Femi Otedola, pulled out following widespread criticisms by labour and others that due process wasn’t followed.
The 2006 Hart Group report, part of the Nigerian Extractive Industry Transparency Initiative, showed that NNPC ``could not explain’’ how refineries in 1999 and 2000 received more crude than was sent from oil terminals. And critics have long maintained the refineries have been intentionally mismanaged to ensure that government cronies receive huge import contracts at the expense of the quality of life of average Nigerian.
Yar’Adua may soon widen his reforms to include a plan to monetise the nation’s gas resources as well as declare a state of emergency on the power sector, Pearmain said.
The final challenge will be whether the new structure can bring about some resolution in the Niger Delta a plan which President Yar’Adua is still keeping close to his chest in his ongoing dialogue with militant groups. The U.S. Energy Information Administration estimates that more that $16 billion in revenue has been lost since the end of 2005, due to shut in production.
“Oil and corruption have been so synonymous,’’ one analyst said. Observers will watch to see whether the new structure will be able to eliminate the stench of corruption from the industry. That is a task President Yar’Adua must accomplish.

More details.... We need to keep the support strong for the change!!!

FG’s road map for restructuring oil and gas industry
By Babagana Kingibe
Published: Tuesday, 4 Sep 2007

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Presidential Adviser on Energy, Alhaji Rilwanu Lukman

introduction

The Oil and Gas Sector Reform Implementation Committee was inaugurated on April 24, 2000 under the chairmanship of Dr. Rilwan Lukman, then serving as the Presidential Adviser on Petroleum and Energy. It was charged with broad and wide ranging terms of reference to make recommendations for a far reaching restructuring of Nigeria’s oil and gas industry. The committee comprising of a wide spectrum of membership from both the public and private spheres of the industry, worked for four years to produce the National Oil and Gas Policy. This was adopted and approved by the then Federal Executive Council during its 41st meeting held on July 4, 2005.

The new policy document covers in a comprehensive manner all the relevant aspects of the industry: upstream, downstream, gas, petrochemicals and many other industry related matters.

In addition to the OGIC, a National Committee on Oil and Gas was inaugurated by the then Vice President, in his capacity as Chairman of the National Council on Privatisation on May 17, 2004. The committee was specifically charged to consider and make recommendations on joint venture cash calls of the NNPC, the new crude oil account operated by the NNPC, subsidies in the downstream sector and the need for an integrated oil and gas policy.

The report of the National Committee on Oil and Gas was later harmonised and made into an addendum of the National Oil and Gas Policy by yet another committee chaired by the then Minister of State for Energy, Dr. Edmund Daukoru, that completed its assignment on April 19, 2006.

It is from this document that an implementation road map for the restructuring of Nigeria’s oil and gas industry was drawn in June 2007. The major addition in the road map is the creation of the National Petroleum Council to be chaired by Mr. President. The NPC is the supra-ministerial advisory body of the country’s oil and gas industry. The council will ensure that all strategic decisions regarding the oil and gas industry are coordinated at the highest level of government and are made from the perspective of macroeconomic linkages. It will compose of key economic and energy related ministers as well as other members appointed on their merit by Mr. President.

New institutional and legal framework:

The highlight of the restructuring process is the emplacement of a new institutional framework that governs the operations of Nigeria’s oil and gas industry. At the apex of the new structure will be the NPC. The major policy making functions relating to the industry will, however, reside with the National Petroleum Directorate, where the Minister of Petroleum or Adviser will operate from, and will subsume and professionalise the structures of the current Ministry of Petroleum Resources. The regulatory functions in the industry will now be undertaken by two new agencies – the Petroleum Inspectorate Commission that will take over the upstream operations of the current Department of Petroleum Resources and the Petroleum Products Distribution Authority for the downstream operations of the DPR and the Petroleum Products Pricing and Regulatory Agency.

The other key aspect of the restructuring process is the creation of the new National Oil Company to subsume all commercial operations and subsidiaries of the current NNPC. The new corporation to be known as National Petroleum Company of Nigeria will include all existing subsidiaries and departments of the NNPC with purely commercial functions. The measure is primarily to allow the corporation to operate and eventually evolve into an international, integrated and commercial oil and gas corporation that is driven by revenue generation and profit objectives. It will be governed by a board of directors under a non-executive chairman.

The feature of note here is the excising of the management of national petroleum assets from the ambit of the NNPC as the means of removing the conflicting roles currently embedded in the National Oil Company. The recommendation in this regard is to constitute a new agency dedicated solely for the management of national petroleum assets after due deliberations on the matter by the National Petroleum Council. The departments of the current NNPC dealing with the management of national petroleum assets such as NAPIMS and Crude Oil Marketing Department will thereafter be housed into a new National Petroleum Assets Management Agency, the structure of which is to be decided by Mr. President.

An equally important aspect of the restructuring is the identification of several legislative changes that may be necessary as a result of the implementation of the new National Oil and Gas Policy. Particularly requiring amendments in this regard will be the Petroleum Act (1969), the NNPC Act of 1977 etc. Similarly, new enabling legislation will be required to govern the operations of new bodies and institutions that will emerge in the restructuring.

Membership of implementation committee

The restructuring process will be driven by a select committee under the chairmanship of:

1. Dr. Rilwan Lukman, who will serve as the Strategic Adviser to the President on Petroleum and Energy Matters

2. The Director-General of the new National Petroleum Directorate.

3. The Group Managing Director of the new National Petroleum Company of Nigeria.

4. The Director-General of the new Petroleum Inspectorate Commission

5. The Director-General of the new Petroleum Products Development Authority.

6. The Director (Oil and Gas) of the Bureau of Public Enterprises.

7. Prof. Yinka Omorogie

8. Malam M.M. Ibrahim

9. Ms. Donu Korgba

10. Engr. Sani Bello

11. Dr. Bello Aliyu Gusau who will serve as the Secretary.

Terms of reference:

i. Assume the full mandate for the implementation of the OGIC report, especially as enshrined in the Road Map approved by the President of the Federal Republic of Nigeria.

ii. Constitute and ensure the take off of the new bodies, institutions, organisations and agencies that will constitute the institutional framework for the restructured oil industry.

iii. Identify and put in motion all required amendments and changes in all legislations governing the country‘s oil and gas industry.

iv. Seek the approval of Mr. President on all major amendments to the report that may arise in the course of implementation.

Mode of operation

The scope of work involved in the restructuring process is such that a multiplicity of skills and competencies (legal, managerial, financial, technical, and many others) are required. In this regard, the committee will have to involve wide-ranging personnel and expertise in the exercise from both within and outside the oil and gas industry, and from both public and private institutions. These will include government officials and agencies, private consulting firms and probably international oil and gas bodies and institutions.

Duration of the exercise

The main task of the restructuring of Nigeria‘s oil and gas industry and the establishment of new organisations and agencies will be accomplished within a period of six months by the committee. The aspect of the exercise that will require a longer period is that of the changes and amendments to the various enabling legislations that govern the various issues and institutions to be affected by the restructuring process.

Executive summary

The President is kindly invited to note:

1. That the Federal Executive Council at its 41st meeting held on July 4, 2005 approved a new oil and gas policy that is geared towards ensuring a major restructuring of Nigeria‘s oil and gas industry in line with the experiences of other national oil companies, as well as adhere to and global best practices.

2. That the Federal Executive Council had further approved the establishment of an implementation strategy as now reflected in the implementation road map for the restructuring of the Nigerian oil and gas industry that itemises the practical steps to be taken in the implementation exercise.

3. That the main thrust of the restructuring exercise is to streamline operations in Nigeria’s oil and gas industry in such a way that the major tasks of policy, regulation, commercial operations and national petroleum assets management are carried out by separate public entities as opposed to the current conflicting roles embedded in the NNPC.

4. The urgent need for the emplacement of a new institutional framework that will govern the Nigerian oil and gas industry which include the creation of the following entities:

i. The National Petroleum Council

ii. The National Petroleum Directorate

iii. The Petroleum Inspectorate Commission

iv. The Petroleum Products Distribution Authority

v. A new national oil company to be named National Petroleum Company of Nigeria

vi. A new National Petroleum Assets Management Agency.

5. The need to make major legislative changes and amendments in various enabling laws governing the operations of Nigeria’s oil and gas industry.

6. The need to put in place a Select Committee to assume the mandate for the implementation of the Road Map for the Restructuring of Nigeria’s Oil and Gas industry to be chaired by Dr. Rilwan Lukman serving as a Strategic Adviser to the President on Petroleum and Energy.

7. The requirement for multiplicity of skills and competences in carrying out the restructuring process and therefore the need to involve both other government personnel and agencies, and private consultants in the exercise

The time span required to actualise the restructuring exercise will be about six months.

Prayers:

Mr. President is further invited to kindly consider and approve:

The immediate implementation of the approved National Oil and Gas Policy as reflected in the Road Map for the Restructuring of Nigeria’s Oil and Gas Industry.

The replacement of a new institutional framework for the Nigeria’s oil and gas industry including the establishment of the following organisations:

* National Petroleum Council;

* National Petroleum Directorate;

* Petroleum Inspectorate Commission;

* Petroleum Products Distribution Authority;

* National Petroleum Assets Management Agency.

The immediate constitution and inauguration of the National Petroleum Council with the President as chairman.

The appointment of new heads and management for the new organisations, including in particular the following:

* DG National Petroleum Directorate;

* DG Petroleum Inspectorate Commission;

* DG Petroleum Products Distribution Authority;

* GMD National Petroleum Company of Nigeria;

and the Chief Executive Officer of the National Petroleum Assets Management Agency as reflected in the Road Map.

The immediate composition and inauguration of an Implementation Committee to carry out the restructuring exercise with Dr. Rilwan Lukman as the Chairman. And the appointment of the following as members:

* Director General (National Petroleum Directorate);

* Group Managing Director, National Petroleum Company of Nigeria;

* Director General, Petroleum Inspectorate Commission;

* Director General, Petroleum Products Distribution Agency

* Prof. Yinka Omorogie;

* Mallam M.M. Ibrahim;

* Ms. Donu Korgba, and;

* Engr. Sani Bello, while;

* Dr. Bello Aliyu Gusau, is to serve as Secretary,

And any other member that may be appointed by the President.

The setting up of an appropriate secretariat to serve both the implementation committee and the Strategic Adviser to the President on Petroleum and Energy.

The putting on hold of the re-composition of the Board of Directors of the Nigerian National Petroleum Corporation and its subsidiaries pending the consolidation of the structures.

Please accept the assurance of my highest regards and esteem.

Ambassador Baba Gana Kingibe is the Secretary to the Government of the Federation.

He comes the next step!!!

NPC unbundled without law —Senate

By Emmanuel Aziken and Laide Akinboade

Posted to the Web: Wednesday, September 05, 2007

....Senate washes hands off House crisis

ABUJA—The Senate yesterday described the unbundling of the Nigerian National Petroleum Corporation (NNPC) by the federal government as a mere pronouncement without the force of law.
The Senate assertion came as the legislative body washed hands off the ongoing crisis in the House of Representatives affirming that all facts pertaining to the allegations of financial scam against Speaker Patricia Etteh must be laid bare before Senate or outside intervention.

Senate spokesman, Senator Ayogu Eze made the assertions at a press briefing following the shortest sitting session of the present Senate yesterday. The only agenda at the session that barely lasted five minutes was the observance of a one minute silence in the memory of Senator Evan Enwerem, the first President of the Senate of the fourth republic.

Debate on the Niger Delta crisis earlier slated for the day has now been re-scheduled for today.
Before the observance of the one minute silence, Senate President David Mark had welcomed the lawmakers from recess and announced the constitution of a six member Committee led by Senator Gregory Ngaji (PDP, Cross River North) to coordinate the burial arrangements for the late Senator Enwerem.

Senator Enwerem died on Thursday, 2nd August 2007 in Abuja .
Yesterday’s session commenced more than one hour behind schedule and was preceded by the visit of Senator Mark and his deputy, Senator Ike Ekweremadu to the Speaker of the House of Representatives.

The visit which lasted about forty five minutes fuelled speculations that the Senate may have waded into the crisis presently rocking the House over allegations of financial misappropriation by the House leadership.

Senate spokesman, Senator Eze in his press briefing, however, denied that claim saying the visit to the House was restricted to discussions on the burial arrangements for the late Enwerem.
“No, he just went to confer with the leadership on the other side on the need to give Senator Enwerem a befitting national burial.’’ “The issue in the lower chamber is already being handled by the lower chamber and there is no intention on the part of the Senate to interfere.’’

“What we have heard so far about what is happening in the lower House is not sufficient to reach conclusion on them. let us allow the process that is going on there to bring out the facts and resolve the issues.’’
“We don’t have a position on it until we have seen all the facts,’’ Eze added.

On the administration’s disbanding of the NNPC, Senator Eze said:
“As far as I am concerned it is a pronouncement by the executive, so far the executive has announced their intention and the intention was announced by a lawyer Ajumogobia (Odein Ajumogobia (SAN), Minister of State Energy) who briefed the nation is a lawyer and I am sure he will be aware of the provisions of decree 33 and all the subsequent laws setting up the NNPC before making that pronouncement,’’ he said.

According to him the Senate would redress whatever breach may have been committed by the pronouncement.
Senator Eze equally reasserted the Senate’s determination to forge ahead with the Constitution amendment process next year saying that nothing would deter the Senate from purifying the Constitution which he described as an impure document.