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Nigeria: Shell Sues NNPC for $2.24bn

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Nigeria: Shell Sues NNPC for $2.24bn

Ese Awhotu
Abuja

Indications emerged yesterday that the Nigerian National Petroleum Corporation (NNPC) can no longer generate enough revenue to sustain its operations. This is even as it was revealed that the Shell Petroleum Exploration Company (SNEPCO) has sued NNPC for $2.4billion.

The Group Managing Director of the NNPC, Engr. Abubakar Yar’Adua, has expressed dismay at the unsustainable revenue generated by NNPC, adding that “the corporation’s expenditures have always outweighed its income, which makes the need to commercialise it very expedient.”

Yar’Adua, who spoke at the NNPC chief officers management development programme performance report presentation in Abuja, said the corporation’s management team is already at variance in the budget in terms of performance.

“It bothers the government that NNPC spends more than it earns and the current revenue it generates can no longer sustain it,” he stated.

Yar’Adua who was represented by the group executive director, corporate services, Mr. Ibrahim Waziri explained that management considered leadership key to the achievements of growth in the corporation said that NNPC established the OMDP in 1991 for such capacity building.

Yar’Adua noted that oil prices in always soaring in the international market, yet prices of petroleum products remain the same in Nigeria .

“Revenue can barely sustain an organization like NNPC, so NNPC is to provide a friendly environment and you are to complement it.

On the OGIC report, he disclosed that the report has been submitted to the government by the committee. And it aims at making Nigerian oil and gas a commercial business, profit oriented and it can create value for the country.

Meanwhile a paper presenter at the presentation of the NNPC chief officers performance report yesterday revealed that the NNPC may lose $2.24 billion to Shell Petroleum Exploration Company (SNEPCO) annually as the later has sued the former the said amount.

http://allafrica.com/stories/200806060273.html

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