ABSTRACT
The Nigerian National Oil Corporation (NNOC) was established in 1971 to ensure the government’s participation in oil exploration and production. It joined OPEC in 1971 as the 11th Member country. Its status as a member of the organisation has since grown significantly. In April 1977 NNOC was merged with the Ministry of Petroleum Resources to pave the way for formation of the Nigerian National Petroleum Corporation (NNPC). NNPC was established through an Act CAP 320 (Nigerian Govt. Law) of 1 April 1977. The merging of the Ministry of Petroleum Resources and the Nigerian National Oil Corporation was intended to prevent duplication of functions. The enabling Act empowered NNPC to discharge the following functions:1
1 exploring and prospecting for, working, winning or otherwise acquiring, possessing and disposing of petroleum;
2 refining, treating, prospecting and generally engaging in the handling of petroleum for the manufacture and production of petroleum products and its derivatives;
3 purchasing and marketing petroleum, its products and by-products; 4 providing and operating pipelines, tanker-ships or other facilities for the
carriage or conveyance of crude oil, natural gas and their products and derivatives, water and any other liquids or other commodities related to the corporation’s operations;
5 constructing, equipping and maintaining tank farms and other facilities for the handling and treatment of petroleum and its products and derivatives;
6 carrying out research in connection with petroleum or anything derived from it and promoting activities for the purpose of turning to account the results of such research;
7 doing anything required for the purpose of giving effect to agreement entered into by the federal government with a view to securing participation by the government or the corporation in activities connected with petroleum;
8 generally engaging in activities that would enhance the petroleum industry in the overall interest of Nigeria;
9 undertake such other activities as are necessary or expedient for giving full effects to the provisions of the Act.
