As with many other developing countries, the multinationals in Nigeria had been operating under what is called a concession system, with NNPC being the concessionaire, while the companies are the operators.

NNPC also is responsible for the management of the exploration bidding rounds for oil and gas.

The multinational oil companies operate in partnership with NNPC under Production Sharing Contracts (PSCs).

AZeD1:

1) DPR is not not NNPC ( I knew you didn't know this)
2) NNPC might own refineries, but it doesn't refine because they don't work hence the crude oil swap/subsidy.
3)Shell, Chevron, Total et al all operate joint ventures on behalf of themselves and the NNPC. The NNPC operates nada. The only thing NNPC does is contribute Nigeria's share of the money and it's something the CBN can do.

Brief explanation of how the JV's work because I'm in a good mood.

When a new oil field is to be developed, the NNPC takes a percentage (usually 60%) while the rest of the companies involved share 40%. All parties involved usually contribute funds according to their share and when the field starts producing, the operator of the joint venture first takes its operating expenses first before the profits are shared according to shareholding.
NNPC contributes no technical expertise at all.

From NNPC's website


You have no clue as to how NNPC works.

Link 1: NNPC in 2018 signing a deal with CNNOC for gaining of technical expertise so NNPC can operate fields on its own.

https://www.google.ca/amp/s/www.thisdaylive.com/index.php/2018/09/11/nnpc-turns-to-china-for-expertise-in-oilfield-development/%3famp

Link 2: NNPC partnering with an Oil Service company to develop a field.
https://www.pulse.ng/bi/finance/nigeria-signs-oil-deal-with-schlumberger-and-will-earn-5-60bn-id8569678.html

PS: NNPC is 100% owned by Nigeria and it's a loss making entity.

NLNG: Nigeria owns 45% but doesn't manage it and it's a profit making entity and one of largest gas production firms in the world.

As the International Monetary Fund stated very recently, it is the failure of this government to have a coherent and comprehensive set of policies combined with poor leadership that has led to its failure to deliver. Over the last 18 months, I have worked with the best experts Nigeria has to offer to come up with policies and plans that when implemented will get Nigeria going in the right direction again. I am not talking about what I can do. I am talking of what I have done before.

You need a law to unbundled NNPC, that's why we have been clamouring for PIGB. NNPC is an act in our constitution.

I know that over the years, we've developed enough Local content capacity to do most things in the oil industry. Neconde, a subsidiary of Nestoil doesn't have a foreign technical partner. Rather it partners with NPDC.

If NNPC were as productive and profitable as Gazprom, Petrobras,etc we wouldn't have been talking about selling them. NNPC is going down under a huge debt coupled with satanic corruption. I have no problem with state owned companies that are doing profitably and productively well.

We can go back and forth with this and I'm all in this debate because I believe that this is one of the best solution to the problem of NNPC. Unbundle and sell major stakes/useless assets, tie the money to projects that can be seen and impact felt.

1) DPR is not not NNPC ( I knew you didn't know this)

2) NNPC might own refineries, but it doesn't refine because they don't work hence the crude oil swap/subsidy.

3)Shell, Chevron, Total et al all operate joint ventures on behalf of themselves and the NNPC. The NNPC operates nada. The only thing NNPC does is contribute Nigeria's share of the money and it's something the CBN can do.

1) It doesn't matter where DPR started. As of today, DPR is not part of NNPC and DPR is responsible for regulating the oil industry.

2) NNPC owns refineries that don't work, it's a refiner in theory not practice. By the way, the country spends huge sums paying the salaries of people doing nothing.

3) The forex NNPC supplies the country comes from crude oil sales. Selling NNPC doesn't stop the sale of crude oil.

4) If you sell the refineries, move NPDC to the NLNG model, sell Duke oil and the Data service company, while keeping NAPIMS, you would have sold a majority of NNPC while still retaining the arm that manages the JVs.

5) Compare NNPC with NLNG and you'll see the difference is like night and day. What the government needs is an efficient regulatory body like the NCC to over see the oil industry and not an over bloated work force in the name of a national oil company.

1) You are fixated with NNPC as one big indestructible company may be because you think NNPC is like Petrobras or Aramco. The PIB suggests breaking up NNPC. Are you saying the PIB is rubbish because there's synergy between NNPC, DPR and others?

2) Nigeria uses traders to sell her crude, there's nothing magical about that. The same trading of crude can be assigned to DPR or any other agency.

3) Atiku can't sell NNPC because it was created by an act or parliament (I would need to confirm) but NNPC as it is today needs to change drastically.

4) I understand the NLNG model very well. The government owns a majority (45%) but the day to day handling is left to other operators. Petrobras is also majorly owned by the Brazilian government (55%) but its run like a private organization.

NNPC has always been the piggy bank of the President as opposed to a professional run industry giant. That needs to change and fast.