Recover stolen oil money-- President Buhari tells NNPC boss
President gives new helmsman Kachikwu six tasks
A NEW helmsman took the reins yesterday at the Nigerian National Petroleum Corporation (NNPC).
President Muhammadu Buhari appointed Dr. Emmanuel Ibe Kachikwu, the
Executive Vice Chairman/General Counsel of ExxonMobil (Africa), as Group
Managing Director (GMD), asking him to give recovery of stolen oil
money a priority, among other targets.
Buhari may also appoint Kachikwu, who beat three other candidates
in
the race for the job, as the Minister of State for Petroleum Resources
to ensure synergy, a source said last night.
Those also considered and discreetly screened for the job, source told The Nation
learnt, are former Petroleum Products Prices Regulatory Agency (PPPRA)
Executive Secretary Stanley Reginald; Shell Petroleum Development
Company Managing Director Mr. Osagie Okunbor and a NNPC Deputy General
Manager, whose name was not disclosed.
At the final negotiation with Kachikwu, the President gave him six terms of reference to reshape the corporation. They are to:
- clean up the NNPC system of corrupt elements;
- recover all stolen crude oil funds;
- work with the Economic and Financial Crimes Commission (EFCC) and the Directorate of State Service (DSS) to trace and recover stolen oil cash;
- review the structure of the NNPC to compete globally;
- giving targets to all subsidiaries and put in place performance benchmarks; and
- fixe all refineries, which must work at optimal level, “even if it means using expatriates in the interim”.
A source said: “The new GMD of NNPC was picked after a thorough
search by the President. Actually, at the end of the search, the choice
was narrowed down to four candidates.
“The President opted for Kachikwu who is the Vice President of Exxon
Mobil, not only in Nigeria but in Africa. Buhari was impressed by his
impeccable credentials as the most senior black African in any
multi-national oil firm in the world with 30 years experience.
“Apart from being a First Class graduate, Kachikwu also obtained PhD
in Law which enabled him to rise to company secretary in Exxon Mobil.”
But it was not easy for the President to convince Kachikwu to accept
the job because he was afraid that he might be messed up like other
Nigerians, a source said.
“In their negotiation, President Buhari repeatedly said: ‘I won’t
interfere with your work; I will give you a free hand because I want to
reform this oil sector once and for all.’ The GMD accepted the job
following what he realized as “the infectious patriotism and genuine
intention of the President,: the source said.
Kachikwu yesterday took the reins at a brief ceremony held at the NNPC Towers, Abuja .
The Group General Manager, Group Public Affairs Division, Mr. Ohi
Alegbe, in a statement, said the new helmsman expressed gratitude to his
predecessor, Dr. Joseph T. Dawha, for holding the Corporation. He
pledged to work assiduously in achieving the President’s growth
aspiration for the oil and gas industry.
“ExxonMobil Upstream affiliates in Nigeria congratulate our
Vice-Chairman and General Counsel, Dr. Emmanuel Kachikwu, on this
opportunity to serve Nigeria as Group Managing Director of the Nigeria
National Petroleum Corporation (NNPC). We thank Dr. Kachikwu for his
many contributions to ExxonMobil Nigeria, and wish him well in his new
role.”
Inside the NNPC
The NNPC is the national oil company, through which the Federal
Government regulates and participates in the country’s petroleum
industry.
An Act to dissolve the former Nigerian National Oil Corporation and
to establish the NNPC was created in 1977. The NNPC was established on
April 1, 1977, as a merger of the Nigerian National Oil Corporation and
the Federal Ministry of Mines and Steel.
By law, the NNPC manages the joint venture between the Federal
Government and some foreign multinational corporations including Shell,
Agip, ExxonMobil, Chevron, and Total. Through collaboration with these
companies, the Federal Government conducts petroleum exploration and
production.
For lack of supervision, the NNPC degenerated to a rent-collector for
the government with less attention to transparency and accountability.
Between 2007 and 2009, auditors found that the corporation
over-deducted funds in subsidy claims to the tune of N28.5 billion and
has not been able to account for the money.
In 2008, Willbros Group Inc of United States (U.S.) admitted making
‘suspicious’ payments of over $6.3 million to officials of the
corporation and its subsidiary – the National Petroleum Investment
Management Services (NAPIMS) for assistance in obtaining and retaining
contracts at the Eastern Gas Gathering System (EGGS).
In 2004, ABB Vetco Gray, a U.S. company and its UK subsidiary – ABB
Vetco Gray UK Limited – admitted paying over $1 million in bribes to
NAPIMS’ officials, in exchange for obtaining confidential bid
information and favourable recommendations from government agencies.
After the publication of a report In November 2013 by Swiss, a
non-governmental advocacy organisation – Erklärung von Bern –
allegations of fraud surfaced, placing the NNPC under suspicion of
siphoning $6.8 billion of crude oil revenues.
From 2013, the NNPC has been battling with the allegation of non-remittance of $20 billion into the Federation Account.
These allegations, among others are responsible for the continued
calls for the sanitisation and repositioning of the corporation.
The Nation
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