The new head of the Nigerian National Petroleum Corp (NNPC) said on Sunday he will review all production-sharing contracts and joint venture agreements with its partners "to reflect current day realities in the global oil and gas industry".
Emmanuel Kachikwu,
who was appointed two weeks ago to head the state oil company, which
has been accused of corruption and mismanagement, said he would remit
all crude oil proceeds due to the Nigerian government and plug all
revenue leaks throughout the oil sector.
"The
mandate ... is to turn around the entire commercial processes and
procedures in order to impact on the growth trajectory and operations of
the corporation," Kachikwu said in a statement.
The
NNPC works alongside local and international oil majors such as Shell,
Exxon, Chevron as well as global oil traders, including Trafigura, Vitol
and Glencore.
President Muhammadu Buhari appointed Kachikwu, a former Exxon Mobil
executive, with a brief to restructure the NNPC, which has been accused
of failing to account for tens of billions of dollars in recent years.
The
NNPC has not been publishing annual reports and its bookkeeping has
been criticised as opaque, which appears to have allowed billions of
dollars to disappear.
The Nigerian arm of global
corruption watchdog EITI welcomed Kachikwu's restructuring of the NNPC.
It recommended reforms should also focus on ensuring accurate
measurement of crude and a review of pricing for expired legal
agreements with oil companies.
Other areas for
reform are the huge costs of fuel subsidies, crude oil swap and
product-exchange agreements, repair of refineries, oil theft, review of
the existing fiscal regime and acquisition and assignments of oil blocks
by discretion, NEITI said in a statement.
Kachikwu
said he had started a three-pronged restructuring of the NNPC that
should lead to "a new NNPC", which he expects to emerge over the next
five to six months.
He has already dismissed all
of the company's executive directors, other top layers of management and
cut the divisions by half, to four.
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