Group tasks NNPC on service delivery to industries

By Roseline Okere   |   02 September 2015   |   12:39 am  
Ibe Kachukwu

Ibe Kachukwu

Oil and Gas Service Providers Association of Nigeria (OGSPAN) has emphasised the need for the Nigerian National Petroleum Corporation (NNPC) to ensure regular supply of petroleum products to industries.

The group, which has endorsed the transformation programme of the Group Managing Director of NNPC, Emmanuel Ibe Kachikwu, advised Kachikwu to work on the production and refining of different petroleum products in order to meet domestic demand of industries and other consumers.

According to the association, increased refining will also culminate in a significant reduction in imports as well as generate additional foreign exchange through export of refined petroleum products to other countries.

It maintained that there are hardly any industry that have no need for an oil and gas products or by-products for their operations. The group indicated that the industry is important; especially it is indispensable, to the social and economic transformation and industrialisation of our country.

In a statement, the OGSPAN National President, Colman Obasi, maintained that some of the nation’s refineries can refine as many as 32 different types of petroleum products.

It indicated that the rehabilitation and increased capacities of the refineries would assist to create more employment opportunities, attract new investments, spread of domestic technologies and capacity building young graduates in particular and youths in general.

The association maintained that the Niger Delta is the home for upstream oil and gas operations where Nigeria gets most of its revenue the government uses to run the country.

It pointed out that exploration and production facilities, oil tankers, a network of pipelines, rigs, terminals and others dot the landscape of the region. “What are critically lacking in Nigeria are the vast oil and gas manufacturing plants (downstream services) that would usually use the resources of the industry to locally produce oil and gas equipment and use the by-products of crude oil and gas to process them into industrial and domestic uses as done in other oil producing countries.”

The absence of these vast resources/services and the technology to achieve it is largely responsible for the underdevelopment of the oil and gas industry in Nigeria and transformation of the Niger Delta and the rest of the Nigerian economy.

If the new GMD and President Buhari administration can achieve these, they would have set Nigeria on the part of industrialisation.” “On marketing and distribution of petroleum products, we urge the new GMD to be more proactive in ensuring regular availability of petroleum products throughout the country and that marketers do not make payment without availability of petroleum products.

It affects the working capital of marketers/ investors and also deprives them of obtaining loan facilities from banks,” it noted.

It maintained that more efforts should be made to restore sanity in the distribution of petroleum products at the refineries and depots by ensuring that un-authorised and unscrupulous persons or agents vacate the premises.

OGSPAN called for the construction of modern facilities, including effective depots business in the nation.

The association maintained that it has the professional acumen to assist the GMD to achieve the organisational goals of NNPC. “With his pedigree, and the policy of change of the President Muhammadu Buhari, we are certain that Dr. Emmanuel Ibe Kachikwu will prove his mettle in handing over to Nigeria a new business oriented NNPC and oil and gas in Nigeria,” it added



  • emmanuel kalu

    Everything rest on supply. we can’t supply enough oil to our refineries, so they don’t produce at max capacity. which means byproducts are not supplied to industries. we can’t supply gas to our generation plants, meaning they don’t produce max energy and the whole nation suffers. productivity is reduced to dark age levels. it is time the govt and NNPC deal wiht the supply problem. militarize the pipelines temporary until permanent solution are found.

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