The Nigerian National Petroleum Corporation on Monday denied it chartered any jet for the exclusive use of the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke.
The corporation however stated that it was empowered by law to own or charter aircraft for its use.
In a statement signed by the acting Group General Manager, Group Public Affairs Division, NNPC, Dr. Omar Ibrahim, the corporation stated that it had not chartered any aircraft for the exclusive use of the minister or any particular official of the NNPC.
A motion endorsed by the House of Representatives last Thursday indicated that Alison-Madueke allegedly spent N10bn to run a private jet for her personal trips within Nigeria and abroad.
But the NNPC noted that contrary to the information, the minister had not chartered any aircraft for her personal use or the use of her family.
It said, “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 the course of discharging its statutory and commercial functions engages third parties for the provision of services outside of its core business.”
It said this practice was common and acceptable in the local and international business environment in which it operates.
It added that there was nothing prohibiting the NNPC from owning or to charter an aircraft, adding that by the enabling legislation, NNPC was 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.”
Ibrahim said operations in the oil and gas sector were time sensitive and often required prompt attention.
This, he said, could only be achieved by using regular scheduled flights.
He added, “It is standard practice for large oil and gas corporations 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 using the charter option. Other national oil companies, such as Sonangol of Angola, have also chosen the charter options. The advantages of the charter option include zero capital and maintenance costs resulting in a lower financial outlay and thus an improved cash flow.”
source: nigerianeye
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