Petroleum: Downstream Deregulation Sector Begins
November 1
The
Nigerian Government has confirmed November 1, 2010
as the take-off date of its policy of deregulation
of the downstream sector of the petroleum industry.
The Group Executive Director Commercials of the
Nigerian National Petroleum Corporation,
NNPC, Mr. Aminu Babakusa, said government had put
some measures in place to ensure smooth take off of
deregulation and adequate products across the
country.
Modus Operandi
Babakusa said the
NNPC was partnering with
private depot owners in order to lease their oil
tanks and trucks for products distribution.
He said that the Pipelines and Product Marketing
Company, a subsidiary of NNPC, would be a big player
in the market when the deregulation eventually takes
off and would continue to sell products to both oil
majors and independent marketers.
Babakusa said that the NNPC would float more retail
outlets across the country to ensure that products
were adequately provided for users.
Consultation
Ahead of the changes in the petroleum sector, the
Nigerian Government has begun consultations with
multinational oil companies over the Petroleum
Industry Bill aimed at reforming the oil and gas
sector in the country.
The talks are being held between senior executives
of the NNPC and members of the Oil and Gas Reform
Implementation Committee.
Executive Secretary of Committee, Dr. Bello Aliyu
Gusau, said the committee would be engaging the oil
companies on an individual basis, beginning with
Shell Petroleum Development Company.
Clarifications
He said the meetings were being held to clarify
issues raised by the
international oil companies
and in particular as they affect the fiscal regime
recommended in the draft bill before the National
Assembly.
Gusau said there was a need for the oil companies
and stakeholders as a whole to understand some of
the assumptions made by the committee in the course
of its assignment, upon which some of the
recommendations were based.
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