National Assembly Commends NIPCO For Increased Stake In Downstream Sector

Mr Joseph Akinlaja, the Chairman, Petroleum Downstream Committee, House of representatives has commended Nigerian Independent Petroleum Company (NIPCO) for its increased stake in downstream sector.
Mr Taofeek Lawal, the Head of Communications in NIPCO, in a statement quoted Akinlaja as saying this during an oversight visit to the company in Lagos.
Akinlaja said that ExxonMobil’s 60 per cent equity in Mobil Oil Nigeria Acquired by NIPCO had demystified the impression that it was an impossible terrain for indigenous oil companies.
He said that the feat of the company was commendable and a big boost to propel higher indigenous stake in the nation’s oil and gas industry.
“ There is no rocket science in selling white products as the pioneers foreign companies makes it look like it is an impossible terrain due to their monopoly in the market.
‘’Among the seven foreign companies who ventured into the downstream sector, only Total plc still remain, others have yielded their proceeds to indigenous companies,” he said.
According to him, NIPCO has exemplified the value chain by acquiring Mobil oil Nigeria Plc to expand its horizon and impact in the downstream sector as a key player.
He said that as an indigenous company in the sector, NIPCO had performed creditably in the short period of its existence.
Akinlaja said that the green chamber was proud of the organisation as a show piece for local content in the hydrocarbon industry.
Akinlaja said that in spite of the economic recession in the country, the company had not retrenched any staff and still maintained good housekeeping and high standards in its operations.
He also commended the robust presentation of the company at the recent public hearing of the House on kerosene explosions.
The chairman said that the visit was to see for themselves the practicability of the suggestions based on NIPCO modus operandi on the handling of the product.
In his remarks, the Group Managing Director of NIPCO, Mr Venkataraman Venkatapathy, said the company had become the first indigenous downstream outfit having high influx of retail outlets of white products and LPG to its name.
‘It is also a proud achievement that Nipco won the bid to acquire Mobil Plc not only because of our push, but amongst all, we were seen as a company whose technical, safety, experienced man power ratings are very high and are on record,” he said.
Mr Venkataraman said that in spite of the economic recession, employees jobs were maintained with no retrenchment of any sort from Nipco and the company had reinvested its profit in the country.
The Group Executive Director, NIPCO, Alhaji Abdulkadir Aminu, said stakeholders in the industry needed to come together to state their challenges.
Aminu also said that stakeholders also should analyse by documentation the areas where the Federal Government and private sector could participate effectively in the hydrocarbon industry.
He assured that NIPCO gaving the highest equity participation to marketers in the ownership of the company and would never let Nigerians down.
“We will also increase our participation in the oil and gas industry in all aspect as we add value to the common man through our various CSR programmes,” he said.