The Group Managing Director, Nigeria National Petroleum Corporation (NNPC), Mr. Andrew Yakubu has reiterated that the passage of the Petroleum Industry Bill (PIB) by the National Assembly would revolutionise the Nigerian Oil and Gas industry.

The NNPC GMD who stated this in an interview in Abuja noted that the proposed PIB Act would separate policy, regulatory and commercial roles in the industry.

He said: “Specifically, the PIB envisages the creation of three National Oil Companies from the current NNPC. The current NNPC will be re-structured into NPDC, the Refineries, PPMC, NNPC Retail and other support service units. The unbundling of the NNPC into the National Asset Management Company, the National Gas Company and a vertically integrated National Oil Company with limited Upstream Assets may be viewed as encouraging competition as there is no restriction in law to the business that each of the companies could pursue in future.

The impact of the PIB include: Enhancement of exploration and exploitation of petroleum resource activities, increasing domestic gas supplies especially for power and industry, creating competitive business environment, establishment of stable and competitive fiscal framework that is flexible and attractive, create a commercially viable National Oil Company and efficient regulatory institutions. It will also engender transparency, accountability safe operating environment as well as Promote Nigerian Content.”

Mr. Yakubu explained that government must explore all avenues to combat the menace of oil thief and illegal bunkering if it is to stabilize the Oil and Gas Industry.

According to him, “Crude oil theft is supported by a value chain consisting of; Local Crude oil thieves linked to dubious tanker owners who receive stolen crude at high seas in international waters off the Nigerian Coast, from where the contraband finds its way to financially distressed refineries.

“Since all these actors are dependent on monetary rewards, often times the money is laundered through the banking system and is finally paid to the local crude thieves through the financial system. It is therefore imperative to tackle the money laundered from the illegal sale of Nigerian crude; Similar measures to those applied in fighting the trafficking of drugs and blood diamonds should be explored. In addition to this, Nigeria as part of its drive to improve revenue transparency and ensure accountability for every barrel produced, is seeking to use the fingerprinting methodologies of its oil to track Nigerian Crude legitimately sold in order to interrupt those crudes illegally disposed of by criminal gangs.

The NNPC Helmsman while lauding the local content initiatives of the Government stressed that the Corporation as the regulator of the industry would continue to ensure that it is fully complied with by investors.

“As a corporation NNPC is subject, regulated and expected to ensure full compliance with the act in its operations. The National Content Act is one of the legislative interventions developed by the Federal Government in 2010.  Its primary intention is to domicile an increasing proportion of Engineering and other services of the oil and gas Industry in Nigeria. The act has already led to Growth in the number of engineering firms, increase in man-hours of in-country engineering design and growth in professional and non-professional jobs,” he added.

Mr. Yakubu further said that Oil and Gas operations require high skilled labour and are technologically driven and it is therefore critical to develop the country’s human capacity in order to realize the full benefit of leading technology applications.

“Emerging producers must therefore give premium to skills development and acquisition of relevant technologies,” he said.