Says Corporation empowered by law to own or Charter Aircraft
The Management of the Nigerian National
Petroleum Corporation, NNPC has reacted to media reports on the purported
charter of aircraft by the Corporation for the personal use of the Minister of
Petroleum Resources Mrs. Diezani Alison-Madueke who is also the Chairperson of
its Board of Directors.
In a Press Release signed by the Acting
Group General Manager, Group Public Affairs Division, Dr. Omar Farouk Ibrahim, the
Corporation stated that it has not chartered any aircraft for the exclusive use
of the Minister of Petroleum Resources or any particular official of the
Corporation. NNPC also noted that contrary
to the information being peddled is some quarters, Mrs. Alison-Madueke has not
chartered any aircraft for her personal use or the use of her family.
NNPC however noted that in consonance with
the legal instrument which establishes the Corporation as a commercial entity
to engage in the oil and gas sector, the NNPC in course of discharging its
statutory and commercial functions engages third parties for the provision of
services outside of its core business.
The Corporation noted that this practice is
common and acceptable in the local and international business environment in
which it operates.
``More
specifically, we would like to state as follows’’-
·
There is nothing prohibiting
NNPC from owning or chartering an aircraft. On the contrary, by the enabling
legislation, NNPC is empowered to ``hold, manage and alienate moveable and
immovable property and enter into contracts or partnerships with any company,
form or persons which in the opinion of the Corporation will facilitate the
discharge of the said duties under this Act’’.(Please refer to Section 6 of the
NNPC Act, Cap. N123, LFN 2004) .
·
Operations in the oil and gas
sector are time sensitive and often require prompt attention, which cannot be
achieved using regular scheduled flights. It is standard practice for large oil
and gas Corporation such as NNPC to make use of the most efficient means of transportation
to ensure the effective and efficient coverage of the vast scope of critical
oil and gas assets under their purview.
·
NNPC has always availed itself
of the use of owned or chartered aircraft for the purpose of its business,
which includes the transportation of its top functionaries.
·
In this regard, it is pertinent
to note that the international oil Companies operating in joint ventures with
NNPC, regularly charter aircraft as dictated by the exigencies of their
business. Indeed some have moved from owning their own aircraft to suing the charter
opinion. Other national oil companies, such as Sonangol of Angola, have also
chosen the charter option.
·
The advantages of the charter
option include zero capital and maintenance costs resulting in a lower
financial outlay and thus an improved cash flow.
Dr. Omar Farouk Ibrahim
Acting Group General
Manager
Group Public Affairs
Division
NNPC, Abuja
24/03/14
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