Nigeria splits state-run oil firm

Nigeria's state-run oil firm, the Nigerian National Petroleum Corporation (NNPC), was on Tuesday divided into seven independent operational units, authorities said.

Oil Minister Ibe Kachikwu on Wednesday told Xinhua that President Muhammadu Buhari has already approved the appointment of heads of the units created, adding that five of the newly created seven operational units will be strictly business-focused.

The new units include Upstream, Downstream, Gas and Power, Refineries, Ventures, Corporate Planning and Services, as well as Finance and Accounts. Their operations will take immediate effect, the minister said.

Creation of these new units will make the oil sector in Nigeria more competitive, Kachikwu said, noting the key issues include "getting the upstream working again".

He said the units were creatively designed to be profitable and maintain their operations without dependence on government interventions.

The minister called on workers in the oil and gas industry "had nothing to fear about as the government will ensure that all units must respect the labor laws and no worker will lose his job due to the splitting exercise".

Nigeria is Africa's largest oil producer, but the industry has been hit by the declining international oil price.

Buhari held discussions on means of stabilizing the global crude oil prices with leaders of Saudi Arabia and Qatar during his recent official visits to the two countries. Endit