ABSTRACT
The Nigerian National Oil Company was granted oil leases over a large area and was allowed to take over the concessions withdrawn from foreign companies in the course of time as new agreements on job ventures continued to be negotiated with foreign companies. NNOC was expected to train an adequate number of engineers, geologists and managers of various cadres for its own use, to hire foreign contractors to work for it on agreed payment terms which may be cash or oil in specie. The Nigerian National Petroleum Corporation took over the assets and liabilities of NNOC. Some of the functions of the divisions in the Ministry of Mines and Power were added to the functions NNPC inherited from NNOC. The President of Nigeria, Alhaji Shehu Shagari had to broadcast to the nation on the issue and set up a high-powered Judicial Commission of Inquiry called the Crude Oil Sales Tribunal with a Supreme Court Judge as chairman.
