FG planning to ‘reduce stake’ in NNPC JV assets, says PENGASSAN

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has alleged the federal government plans to sell off significant stakes in joint venture (JV) assets managed by the Nigerian National Petroleum Company (NNPC) Limited. 

Festus Osifo, PENGASSAN’s president, announced the development in a joint briefing with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).

“The government is wanting to reduce its stake in these assets, principally, they want to sell some huge percentages in these assets. In some places, sell up 35 percent, in some places sell up 30 percent, so that they will have some cash to spend in other areas. That is the excuse that they are giving,” he said.

The PENGASSAN president said the association opposes the federal government’s proposed sale.

“But as an association, as PENGASSAN and NUPENG, we say no to this. You cannot mortgage our future today and tomorrow we will be starving as a country,” Osifo said.

“If we allow this to continue, it has a way of making NNPC become bankrupt in the next few years. There are obligations that must be met, the chief of these obligations is payment of staff salaries and welfare of our members.”

He emphasised that regardless of whether the idea originated from the ministry of petroleum, the ministry of finance, NNPC, or even the presidency, the association rejects it entirely.

“As you could recall a while ago, there were some divestments that took place in some of these JVs. If you could remember very well, in the ENI, Nigeria Agip Oil Company, it was bought over by Oando Energy and Natural Resources. And also, Seplat bought over the JV components of ExxonMobil,” Osifo said.

“Today, there is a plan moved by government to reduce their stake in these JV operations. Currently, government holds between 55 percent to 60 percent of the JV assets in these companies.

“That is the stake of government today. And this stake of government today is being managed by NNPC Limited. So, they manage this JV on behalf of the federation.”

Osifo explained that all crude oil assets and oil wells in Nigeria are not only owned by the federal government but to the federation as a whole, noting that NNPC manages the assets on the federation’s behalf.