The Functions, Powers and Role of

NNPC in Nigerias Oil and Gas

Industry
A Presentation by A.C. Madichie Esq
Secretary to the Corporation/Legal Adviser
NNPC at the workshop organized by IIPELP
in conjunction with NJI 16
th
-18
th
Oct 2012
OUTLINE
Introduction and Brief History of NNPC
Legal and Institutional Structure of NNPC
Functions, Powers and Role of NNPC
NNPC Subsidiaries
NNPC Statutory Privileges
NNPC Post PIB
INTRODUCTION AND BRIEF HISTORY
OF NNPC
NNPC came into being on the 1
st
of April 1977 through
Decree No 33 of that date.
The inception of NNPC was a watershed in the
administrative structure of the public sector of the industry
as it meant the dissolution of the NNOC (Established by
Decree No 18 of 1971) and the Fed Min of Petroleum
Resources and their merger to form the new body, NNPC.
Government decision to merge the NNOC and the Ministry
was premised on the belief that if the public sector of the
oil industry was brought under a unified control, better
understanding and cooperation would be promoted among
its staff. Government also felt that this action would
optimize the use of scarce indigenous human resources
available in the oil industry.
LEGAL AND INSTITUTIONAL
STRUCTURE OF NNPC
NNPC was established as a statutory corporation by Act in
1977 {Act No 33}
The affairs of the Corporation are conducted by a Board of
Directors made up as follows:
i. Minister for Petroleum as Chairman
ii. Director-General of the Min of Finance and Economic
Development
iii. Managing Director
iv. And three other persons appointed by the Federal
Executive Council
The Managing Director is the Chief Executive of the
Corporation and is responsible for the day to day running of
its affairs.
LEGAL AND INSTITUTIONAL
STRUCTURE (Contd)
GMD
CORPORATE
SERVICES
EXPLORATION &
PRODUCTION
FINANCE &
ACCOUNTS
ENGINEERING
AND
TECHNOLOGY
COMMERCIAL &
INVESTMENT
BUSINESS
DEVELOPMENT
GAS & POWER
REFINING &
PETROCEMICALS
SEC TO THE
CORP/LEGAL
ADVISER
FUNCTIONS POWERS AND ROLES OF
NNPC.
NNPC functions and roles include inter alia; exploration
and production, refining, purchasing and marketing of
petroleum, its products and by-products, providing and
operating pipelines, tanker-ships and other facilities for
the conveyance of crude oil, constructing equipping
and maintaining tank farms, research and development
and doing anything for the purpose of giving effect to
agreements entered into by the Federal Government
with a view to seeking participation by the
Government or the Corporation in activities connected
with petroleum.
FUNCTIONS POWERS AND ROLES OF
NNPC (Contd)
To facilitate its functions and roles, NNPC has been vested with the
following powers:
a) To hold, manage and alienate moveable and immovable property;
b) To purchase or otherwise acquire or take over all or any of the
assets, businesses, properties, privileges, contracts, rights,
obligations and liabilities of any other company, firm or person in
furtherance of any business engaged in by the Corporation;
c) To establish and maintain subsidiaries for the discharge of such
functions as the Corporation may determine;
d) To enter into contracts or partnerships with any company, firm or
person which in the opinion of the Corporation will facilitate the
discharge of the said duties under the NNPC Act.
NNPC SUBSIDIARIES
UPSTREAM
NPDC
IDSL
DOWNSTREAM
PHRC
WRPC
KRPC
NGC
PPMC
COMMERCIAL
DUKE OIL
NETCO
NNPC STATUTORY PRIVILEGES
Section 12 (1) & (2) NNPC Act-: Limitation of
suits against the Corp.
Section 14 NNPC Act-: Restriction on
Execution against the Property of the
Corporation.
Section 16 NNPC Act-: Certain Exemption from
Rates.
Section 20 NNPC Act-: Application of Certain
Enactments.
NNPC POST PIB
The National Oil Company (NOC) shall be a limited liability
company established under CAMA and shall be the successor of
NNPC.
Ownership of NOC shall vest solely in the Federal Government at
incorporation.
Subsidiaries and other legal entities of the NOC may be jointly
owned by the NOC and other parties.
Government may divest itself of any amount of shares in the
NOC after incorporation.
Assets, interests and liabilities of NNPC shall be transferred to
the NOC.
NOC will evolve into a medium sized oil company with
investments outside Nigeria.

Thank you for listening..
NNPC as an organization is dedicated to protection of the environment
and sustainable development.