The full membership of the National Energy Council (NEC) set up to implement the restructuring of the Ministry of Energy and the Nigerian National Petroleum Corporation (NNPC) has finally been unveiled.
Saturday Vanguard gathered that the NEC which will be headed by President Umaru Yar’Adua and Vice President Goodluck Jonathan as Chairman and Vice-Chairman respectively, also has Dr. Rilwanu Lukman, the Honorary Adviser to the President on Petroleum, the Attorney-General of the Federation and Minister of Justice, the National Security Adviser, Odein Ajumogobia, the Minister of State for Energy (Petroleum), the Minister of State for Energy (Gas), Mr. Joseph Makoju, the Special Adviser to the President on Power and Dr. Emmanuel Ebogah, another Adviser to the President on Energy.

A presidency official who spoke with Saturday Vanguard on condition of anonymity disclosed that already the team has been meeting with the President privately to fine-tune the modus operandi for the implementation of the structural reforms, adding that they shall be named at the President’s convenience.
“The whole idea is to ensure that the restructuring is done in a seamless manner so as to ensure that there is minimal disruption to industry activities. Assets and liabilities have to be determined and properly apportioned to the new entities,” he disclosed. He also pointed out that contrary to reports in the public domain, the restructuring exercise to be carried out in the NNPC poses enormous challenges which will require some ingenious tinkering and urged the media to show understanding.

It would be recalled that government at the last bi-monthly Federal Executive Council meeting decided to adopt the Oil and Gas Industry Committee (OGIC) report. While addressing journalists after the meeting, Ajumogbia explained that under the new arrangement, the National Petroleum Directorate (NPD)will replace the existing  Ministry of Petroleum; while the NNPC will be replaced with  the National Oil Company (NOC).

The new National Oil Company, the Minister said will be empowered to carry out responsibilities that are in tandem with such other companies in other parts of the world. Under the new arrangement, the Department of Petroleum Resources (DPR) which had the responsibility of policing the oil sector as a Department in the Ministry of Petroleum has been replaced with an autonomous body to be called Petroleum Inspectorate Commission (PIC).

“It will be an autonomous body that would perform its oversight functions.  The Pipeline and Product Marketing Company (PPMC) will be replaced with a new body to be called Product Distribution Authority (PDA) while the National Oil and Gas Assets Holding Company (NOGAHC) will replace NAPIMS to handle the management of assets of the former NNPC.

The minister said the Federal Government’s decision was premised on the recommendation of the harmonized reports of the Oil and Gas Reform Committee (OGRC) and another committee set up by the National Council on Privatization (NCP). The Committees were set up in 2000 to restructure the country’s oil and gas sector of the economy.  
 
The OGIC report also took into cognisance the need for a National Petroleum Research Centre (NPRC), noting that within the Nigerian oil and gas industry little has been done in the areas of research and development, which constitute the cornerstone of any successful business.