Nigerian National Petroleum Corporation
Encyclopedia
The Nigerian National Petroleum Corporation (NNPC) is the state oil corporation through which the federal government of Nigeria
regulates and participates in the country's petroleum industry
.
and Steel. NNPC by law manages the joint venture
between the Nigerian federal government
and a number of foreign multinational corporations, which include Royal Dutch Shell
, Agip
, ExxonMobil
, Chevron
, and Texaco
(though now merged with Chevron). Through collaboration with these companies, the Nigerian government conducts petroleum
exploration and production. The head of the Nigerian wing of Transparency International
says salaries for workers are too low to prevent graft.
As of September 2007, Nigerian President
Umaru Yar'Adua plans to split the company into five new companies.
The NNPC Towers in Abuja
is the Headquarters of NNPC. It is made up of four identical towers. It is located on Herbert Macaulay Way, Central Business District Abuja
. NNPC also has zonal offices in Lagos
, Kaduna
, Port Harcourt and Warri. There is also an International office located in London
, United Kingdom
In May 2009, the NNPC indicated that the Niger delta
unrest, had no impact on its business despite fights between government forces and rebels in this oil producing area.
and downstream developments, and is also charged with regulating and supervising the oil industry on behalf of the Nigerian Government. In 1988, the corporation was commercialised into 11 strategic business units, covering the entire spectrum of oil industry operations: exploration and production, gas development, refining
, distribution, petrochemical
s, engineering
, and commercial investments. The subsidiary companies include:
, and oil
the country possesses are legally the property of the Nigerian federal government. As such, the oil corporations operating in Nigeria appropriate portions of their revenue to the government, which accrues nearly 60% of the revenue generated by the oil industry in this manner. The revenue gained by the NNPC accounts for 76% of federal government revenue and 40% of the entire country's GDP. As of 2000, oil and gas exports account for 98% of Nigerian export earnings.
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
regulates and participates in the country's petroleum industry
Petroleum in Nigeria
The petroleum industry in Nigeria is the largest industry and main generator of GDP in the West African nation which is also the continent's most populous...
.
History
NNPC was established on April 1, 1977 as a merger of the Nigerian National Oil Corporation and the Federal Ministry of MinesMining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
and Steel. NNPC by law manages the joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
between the Nigerian federal government
Politics of Nigeria
Nigeria is a Federal Republic modeled after the United States, with executive power exercised by the president and with influences from the Westminster System model in the composition and management of the upper and lower houses of the bicameral legislature. However, the President of Nigeria is...
and a number of foreign multinational corporations, which include Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
, Agip
Agip
Agip is an Italian automotive gasoline and diesel retailer established in 1926. It is a subsidiary of the multinational petroleum company Eni.In 2003, Eni S.p.A...
, ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
, Chevron
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
, and Texaco
Texaco
Texaco is the name of an American oil retail brand. Its flagship product is its fuel "Texaco with Techron". It also owns the Havoline motor oil brand....
(though now merged with Chevron). Through collaboration with these companies, the Nigerian government conducts petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
exploration and production. The head of the Nigerian wing of Transparency International
Transparency International
Transparency International is a non-governmental organization that monitors and publicizes corporate and political corruption in international development. It publishes an annual Corruption Perceptions Index, a comparative listing of corruption worldwide...
says salaries for workers are too low to prevent graft.
As of September 2007, Nigerian President
President of Nigeria
The President of Nigeria is the Head of State and head of the national executive. Officially styled President of the Federal Republic of Nigeria and Commander-in-Chief of the Nigerian Armed Forces. The current President of Nigeria is Goodluck Jonathan.-History:On October 1, 1960, Nigeria gained...
Umaru Yar'Adua plans to split the company into five new companies.
The NNPC Towers in Abuja
Abuja
Abuja is the capital city of Nigeria. It is located in the centre of Nigeria, within the Federal Capital Territory . Abuja is a planned city, and was built mainly in the 1980s. It officially became Nigeria's capital on 12 December 1991, replacing Lagos...
is the Headquarters of NNPC. It is made up of four identical towers. It is located on Herbert Macaulay Way, Central Business District Abuja
Abuja
Abuja is the capital city of Nigeria. It is located in the centre of Nigeria, within the Federal Capital Territory . Abuja is a planned city, and was built mainly in the 1980s. It officially became Nigeria's capital on 12 December 1991, replacing Lagos...
. NNPC also has zonal offices in Lagos
Lagos
Lagos is a port and the most populous conurbation in Nigeria. With a population of 7,937,932, it is currently the third most populous city in Africa after Cairo and Kinshasa, and currently estimated to be the second fastest growing city in Africa...
, Kaduna
Kaduna
Kaduna is the state capital of Kaduna State in north-central Nigeria. The city, located on the Kaduna River, is a trade center and a major transportation hub for the surrounding agricultural areas with its rail and road junction. The population of Kaduna is at 760,084 as of the 2006 Nigerian census...
, Port Harcourt and Warri. There is also an International office located in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
In May 2009, the NNPC indicated that the Niger delta
Niger Delta
The Niger Delta, the delta of the Niger River in Nigeria, is a densely populated region sometimes called the Oil Rivers because it was once a major producer of palm oil...
unrest, had no impact on its business despite fights between government forces and rebels in this oil producing area.
Installations
NNPC has sole responsibility for upstreamUpstream (oil industry)
The oil and gas industry is usually divided into three major components: Upstream, midstream and downstream, though midstream operations are usually included in the downstream category....
and downstream developments, and is also charged with regulating and supervising the oil industry on behalf of the Nigerian Government. In 1988, the corporation was commercialised into 11 strategic business units, covering the entire spectrum of oil industry operations: exploration and production, gas development, refining
Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...
, distribution, petrochemical
Petrochemical
Petrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sources such as corn or sugar cane....
s, engineering
Petroleum engineering
Petroleum engineering is an engineering discipline concerned with the activities related to the production of hydrocarbons, which can be either crude oil or natural gas. Subsurface activities are deemed to fall within the upstream sector of the oil and gas industry, which are the activities of...
, and commercial investments. The subsidiary companies include:
- National Petroleum Investment Management Services (NAPIMS)
- Nigerian Petroleum Development Company (NPDC)
- The Nigerian Gas Company (NGC)
- The Products and Pipelines Marketing Company (PPMC)
- Integrated Data Services Limited (IDSL)
- Nigerian LNG limited (NLNG) in joint venture
- National Engineering and Technical Company Limited (NETCO)
- Hydrocarbon Services Nigeria Limited (HYSON)
- Warri Refinery and Petrochemical Co. Limited (WRFC)
- Kaduna Refinery and Petrochemical Co. Limited (KRPC)
- Port Harcourt Refining Co. Limited (PDRS)
Legal premise
According to the Nigerian constitution, all minerals, gasNatural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, and oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
the country possesses are legally the property of the Nigerian federal government. As such, the oil corporations operating in Nigeria appropriate portions of their revenue to the government, which accrues nearly 60% of the revenue generated by the oil industry in this manner. The revenue gained by the NNPC accounts for 76% of federal government revenue and 40% of the entire country's GDP. As of 2000, oil and gas exports account for 98% of Nigerian export earnings.