News from the Energy Daily that Nigeria will replace the Nigerian National Petroleum Co. with the Nigerian Petroleum Co., which analysts say will function more like a state-owned oil firm modeled after Saudi Arabia’s Aramco rather than a government agency.

“….Nigeria’s energy minister, who only assumed his new post six weeks ago, said foreign oil and gas firms operating in the Niger Delta had different objectives for the country than the Nigerian government. He also said there was a “misalignment between our national aspirations as a country and the commercial objectives” of those foreign firms operating in the delta, home to Nigeria’s vast petroleum reserves.

…Ajumogobia’s call for a new way forward for the energy sector followed the recent decision to break down its state-run oil company into five entities in an effort to become more efficient and profitable, while curtailing corruption.

Nigeria’s current petroleum regulator has suffered from chronic capital shortfalls and been the subject of much scrutiny over its falling output. NNPC was reportedly $1.6 billion short in meeting its 2006 expenses and had to be propped up by other sectors of the Nigerian economy though it accounts for an estimated 85 percent of the government’s revenue.

Nigerian President Umaru Yar’Adua laid out a six-month plan to create NPC and its offshoots for exploration, production and export. He also appointed a national energy council to oversee the project in the coming months….”

While I would love to think this move was one based strictly on efficiency and business goals, I worry that it may be more about consolidating control over the highly lucrative petroleum industry in Nigeria. But, given the dismal production numbers of late and increasing violence, perhaps any move is a step forward.