Page 8 - DMEA Week 38 2021

DMEA COMPANIES DMEA

Nigeria establishes NNPC Ltd as new NOC

AFRICA NIGERIAN President Muhammadu Buhari has Harry Marshal (South South) and Chief Pius
issued an order authorising the incorporation of Akinyelure (South West),” Adesina added.
Nigerian National Petroleum Corp. Ltd (NNPC According to previous reports, NNPC Ltd
Ltd), in line with Section 53(1) of the recently will be a corporation and not eligible for direct
signed Petroleum Industry Act (PIA). state funding.
This act lays the groundwork for the new This represents a departure from past prac-
company to replace an existing state-run entity, tice, as NNPC has previously served effectively
Nigerian National Corp. (NNPC), as Nigeria’s as an arm of the government. Officials in Abuja
national oil company (NOC). have said they hope the changes will make the
Femi Adesina, Buhari’s special advisor for NOC more transparent and accountable.
media and publicity, said in a statement that the Kyari pointed out that the Nigerian govern-
president had taken this step in his capacity as ment would be able to privatise the new entity,
the country’s Minister of Petroleum Resources. if it so chose. “[The] law provides that over
The PIA “requires the Minister of Petroleum time, [Abuja] can reduce the shareholding into
Resources to cause for the incorporation of the some private shareholding. That means it can be
NNPC Ltd within six months of commencement floated subsequently as a company that is quoted
of the act in consultation with the Minister of on the stock exchange,” he said. “The intention at
Finance on the nominal shares of the company,” the very onset is not to go to that step, but there is
he stated. provision in the law that allows us ultimately to
Adesina also noted that Buhari had approved sell shares of this company.”
the appointment of the new company’s board He went on to say that NNPC’s replacement
members and management, in line with Section with NNPC Ltd would benefit the whole country.
59(2) of the PIA. “This is very simple. This company will pay
NNPC Ltd’s chairman will be Ifeanyi Ara- taxes and royalties, which are revenues that
rume, a senator from Imo state, while NNPC’s accrue to the federation. So every part of this
current Group Managing Director Mele Kyari country and every sub national institution or
will serve as CEO, he said. Umar Isa Ajiye, the government will benefit from it,” he was quoted
CFO of NNPC, will hold the same position at as saying by the Vanguard newspaper.
NNPC Ltd, he stated. “Secondly, this company will pay company
“[The] other board members are: Dr. income tax that also comes to the federation
Tajudeen Umar (North East), Mrs. Lami O. for the benefit of all. So, what is different is that
Ahmed (North Central), Mallam Mohammed this company will now have profit to make and
Lawal (North West), Senator Margaret Chuba declare dividends, which will be decided by the
Okadigbo (South East), Barrister Constance board of directors of this company.”™

Sasol plans ambitious

emissions reduction

AFRICA SOUTH African energy and chemicals company Agreement.
Sasol announced ambitious emissions-reduc- In aligning with its 2050 ambition, Sasol has
tion targets on Wednesday, 22 September, and stepped up its 2030 scope 1 and 2 greenhouse
will not be investing in new coal projects. gas (GHG) emissions reduction target, from
Instead it is changing direction to a new an initial 10% for its South African operations,
sustainable solutions business, a break from its announced last year, to 30% for its energy and
original business model. Sasol is South Africa’s chemicals businesses, off a 2017 baseline. The
second-biggest emitter, after electricity utility company is also introducing a scope 3 reduction
Eskom. It plans to replace coal feedstock with target, for its energy business, off a 2019 base-
gas, according to its new vision for a decarbon- line. This is consistent with what its peers have
ised future. committed to.
Sasol declared in a statement that its updated “Based on detailed assessments and model-
strategy commits it to be at net-zero emissions by ling, our 2030 target can be delivered without
2050. This, it said, is in line with Sasol’s commit- divestments and offsets, but through the direct
ment to accelerate its transition to a low-carbon decarbonisation of our existing assets,” said
world in support of the objectives of the Paris Fleetwood Grobler, president and CEO of Sasol.

P8 www. NEWSBASE .com Week 38 23•September•2021