NNPC ventures into bunkering business




The Nigerian National Petroleum Corporation (NNPC) has said it plans to set up a subsidiary to provide bunkering services to ships and other ocean-going vessels.

Spokesperson of state oil firm, Ndu Ughamadu, said in a statement that the move was to consolidate its foothold on the shipping business in Nigeria and boost profitability.

Ughamadu said the group general manager, NNPC Shipping, Aisha Katagum, disclosed this in the NNPC’s in-house journal.

She said, “Actually, the NNPC group managing director (GMD) is also very keen on that,” she told NNPC News.

“He has directed the corporate planning and strategy (CP&S) division to come up with a business model for us to see how it could operate.”

According to her, the bunkering subsidiary is most likely going to be an incorporated company like Nidas, a subsidiary under NNPC Shipping division.

Katagum added that the proposed company would likely be domiciled in the NNPC Shipping division too.

He said, “I’m sure it’s going to be a big business because we have so many vessels that come into the West African Coast. This year alone, over 120 vessels have brought imports for us.”

Nikorma and Marine Logistics are two other downstream subsidiaries under the NNPC Shipping division.

While Nikorma engages in shipping and transportation of energy products, Marine Logistics, on the other hand, provides logistics services to the crude and petroleum products and gas sub-sector.

The Marine Logistics have the mandate to effect demurrage reduction and ensure safe and efficient coastal distribution of petroleum products.