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PIB: NNPC won’t be scrapped but fully commercialised, says FG

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The Minister of State for Petroleum Resources, Timipre Sylva, has said the Nigerian National Petroleum Corporation will be fully commercialised in the interest of Nigerians when the Petroleum Industry Bill is signed into law.

He said this did not mean that it would be scrapped, as interpreted by media reports.

Speaking after a closed-door meeting with lawmakers on the PIB Sylva said, “I have heard a lot of noise about the NNPC being scrapped but that is not envisaged by the bill at all. We have said that the NNPC will be commercialised in the interest of Nigerians.

“If we are talking about transforming the industry, the only new thing we are introducing is the development of the mainstream, which is the pipeline sector between the upstream and the downstream.”

He added, “This is because the framework was not there, has not really developed very well. We have adequately provided for the growth of the mainstream sector.

“The host community has the best deal but the details of the bill will be unfolded on the floor of the Senate. The Petroleum Equalisation Fund and the Petroleum Products Pricing and Regulatory Agency will not exist in the same form that they exist today.”

The long-awaited oil reform bill will privatise the NNPC, amend changes to deepwater royalties made late last year and scrap key regulatory agencies in favour of new bodies, a copy of the bill seen by Reuters showed.

President Muhammadu Buhari had sent the bill to the Senate, two sources told Reuters. The Senate, along with the House of Representatives, must sign off on the bill before it can become law.

The legislation has been in the works for the past 20 years and looks to revise laws governing Nigeria’s oil and gas exploration not fully updated since the 1960s because of the contentious nature of any change to oil taxes, terms and revenue-sharing.

The bill proposes creating a limited liability corporation into which the ministers of finance and petroleum would transfer NNPC assets.

The government would then pay cash for shares of the company and it would operate as a commercial entity without access to state funds.

The changes would in theory make it easier for the struggling company to raise funds.

The legislation would also amend controversial changes to deep offshore royalties made late last year by cutting the royalty that companies pay the government for offshore fields producing less than 15,000 barrels per day to 7.5 per cent from 10 per cent.

It would change a price-based royalty too, so that it kicked in when oil prices climbed above $50 per barrel, rather than $35.

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Auto

Kia gets 30,000 pre-orders for battery-powered EV6 sedan

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Kia Motor Corporation, South Korea’s second-biggest carmaker, has launched an all-electric EV6 sedan in the domestic market ahead of its overseas launches later this year.
Already, the automaker says it has received over 30,000 pre-orders for the EV6 in the domestic market, and a combined 8,800 pre-orders in Europe and the United States, according to a report by Just Autos.
The maker of the K5 sedan and the Sorento SUV aim to sell 13,000 units of the zero-emission model on its home turf and 17,000 units in overseas markets this year.
The EV6 is Kia’s first model embedded with Hyundai Motor Group’s own EV-only electric-global modular platform (E-GMP).

The EV6 is priced at 47 million won-57 million won (US$40,800-$49,500) in Korea. With government subsidies, it can be purchased for under 40 million won.
The model is available with two kinds of battery packs — a standard 58-kilowatt-hour (kWh) battery pack and a long-range 77.4-kWh one. The 58-kWh and 77.4-kWh models can travel up to 370 kilometres and 475 km, respectively, on a single charge.
Kia also plans to introduce sedans, SUVs and multipurpose vehicles based on the new EV platform for the next seven years.
It plans to beef up its EV lineup with 11 models, including the seven E-GMP-based ones, by 2025.
With its strengthened EV lineup, it aims to achieve a 6.6 percent share of the global battery-powered EV market by 2025 and global annual sales of 500,000 units by 2026.
Kia’s current EV market share is not available as its EV sales accounted for only 1 percent of its overall sales in 2019.
In April, Kia’s bigger affiliate Hyundai Motor Co. launched the IONIQ 5 all-electric model equipped with the E-GMP platform.
Hyundai plans to introduce the IONIQ 6 next year and the IONIQ 7 large SUV in 2024. It will begin using alphanumeric names like its bigger rivals, such as BMW, whose models are named Series No. 1-8.

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Auto

GAC, Huawei plan smart electric SUV

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China-based auto firm, GAC Motors has sealed a deal with high-tech giant, Huawei, to produce a smart electric sport utility vehicle.
The GAC Group said its first joint project with Huawei would be a “smart SUV” with mass production targeted by the end of 2023.
GAC Motor aims to produce an entirely electrified lineup of vehicles by 2025.
GAC and Huawei said they planned to produce eight models together.
The medium to large size, pure electric SUV would have Level four autonomous driving capabilities, it added.
“GAC Group embraces and encourages extensive technological innovation in its vehicles, and Huawei is a global leader in many types of technology. This strategic cooperation will allow them to build a new generation of intelligent vehicles and digital platforms,” the pair said in a joint statement.
They also said, “This SUV and multiple other future models will utilise GAC’s GEP.30 chassis platform and Huawei’s computing and communication architecture as well as carrying Huawei’s full stack of intelligent vehicle solutions.”
Since signing a strategic cooperation agreement in 2017, GAC and Huawei have worked together on intelligent connected electric vehicle technology.
In September 2020 in Guangzhou, the two firms signed an agreement to further deepen cooperation, with a focus on computing and communication architecture in accordance with the trend in ‘software-heavy’ vehicles.

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Aviation

Enugu governor to meet with aircraft inventor today

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Governor Ifeanyi Ugwuanyi of Enugu State has invited to a meeting today a young inventor, Master Emmanuel Maduabuchi Chukwu, an indigene of the state and student of Government Technical College (GTC), Nsukka, who manufactured a hand-made aircraft.
A statement by the state Commissioner for Information, Nnanyelugo Chidi Aroh, said the governor’s decision to meet with the young aircraft inventor was “in pursuit of his administration’s commitment to encouraging scientific and technological innovation in Enugu State”.
He said parents of the student, the principal of the GTC, Nsukka, the Commissioner for Education, and the Chairman of the Science, Technical and Vocational Education Management Board were among other invited guests for the meeting at the Executive Council Chambers.
Aroh also said the governor would today at the Government House, Enugu, by 2pm, swear in all the 68 Development Centre Administrators whose nominations were recently confirmed by the Enugu State House of Assembly.
Those invited for the swearing-in ceremony, according to the statement, are the 68 administrators of the development centres; the speaker and members of Enugu State House of Assembly; members of the State Executive Council; chairmen of the 17 local government areas; and special advisers to the governor.
Others are chairman and members of the state working committee of the Peoples Democratic Party (PDP); Chairmen of PDP in the 17 local government areas; state chairman of the Traditional Rulers’ Council and local government chairmen of the Traditional Rulers’ Council.

 

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