NNPC may sell refineries that don’t meet ultimatum on rehabilitation –GMD

Ibe Kachukwu

Ibe Kachukwu

NNPC-RefineryThe Nigerian National Petroleum Corporation (NNPC) says it may sell refineries that fail to work optimally by the expiration of the 90-day ultimatum for their rehabilitation.

Dr Ibe Kachikwu, the NNPC Group Managing Director, disclosed this at an interactive session with news men in Lagos.

Kachikwu said “by the end of December when the 90-day ultimatum will expire, any refinery that does not work optimally will be sold.

“I am determined to make a difference during my tenure. We are losing N2.2 trillion monthly to refinery inefficiency. As at today, the average refining performance is 30 per cent.

“If by December, the refineries don’t work, I will export crude allocation and import refined petroleum products until we fix the refineries.

“Right now, the Port Harcourt refinery is showing signs that it will meet the December deadline.

“However, I am not saying Warri and Kaduna refineries will not meet the deadline, but I hope they all make it, so that we can continue to utilise our crude allocation to boost domestic refining.’’

Kachikwu expressed the hope that the NNPC cash call arrears, which stood at N1.1 trillion, would be settled by the end of December 2015.

“By December, I hope to settle all the cash call arrears and grow Nigerian Petroleum Development Corporation (NPDC) to where it is supposed to be,’’ he said.

Receive News Alerts on Whatsapp: +2348136370421

  • Ekenny

    All they know is sell refinery, stop subsidy, bring in the private people, so why did we abuse GEJ and Diezani, I thought there was a better route to fighting the massive waist in the sector. So all the change thing we heard was pure WASH!

  • emmanuel kalu

    How would you be selling the refineries, when you haven’t given it the necessary time and money to be successful. We can’t even get enough crude oil to the refineries for them to function. what need to be done is for the refineries to be publicly traded companies, with only nigerian’s owning shares. this would force them to work within best pratice of publicly held companies. we also need to deregulate the sector, to allow investor build refineries and for those refineries to make money.

  • akin

    That is the reality. The deadline of Dec will be met, but what happens afterwards.The refineries are sinking holes since Babangida who actually started the mismanagement and gross corruption in the entire oil sector. It all started when oil marginal fields and blocks are being awarded to military cronies and fronts without competitive bidding. In the same vain TAM of the refineries became huge contract given to some bogus, corrupt and incompetent entities. Obasanjo saw the mess and kept the whole files under his watch while shamelessly telling Nigerian to bring evidence of corruption against IBB before probing him. He also sold the refineries under cloudy circumstances so we won’t know the damages that have been done. Let 55% be sold to a certified core investor while the balance to ordinary Nigerians.Government would only pay lip service till tomorrow, we would soon be back to square one.