Why Federal Government shifted focus to modular refineries, by Ibe Kachikwu
• Senate panel seeks expansion of local content act beyond oil, gas
• NGPTC attributes N15.81b profit to transformation
The Federal Government’s focus on modular refineries is to improve local capacity, create cost cutting technologies and reduce capital flight.The Minister of State for Petroleum Resources, Ibe Kachikwu, disclosed this at the weekend during the convocation ceremony of the Petroleum Training Institute (PTI), Effurun, Delta State.
Represented by the Permanent Secretary, Ministry of Petroleum Resources, Dr. Folasade Yemi-Esan, hesaid: “One of the major policy thrust of the present administration is the development and engagement of local content. In this regard, PTI’s close collaboration with the Nigerian Petroleum Development Company, which has been mandated to construct a model modular refinery, using local materials and technology, cannot be overemphasized.
“When operational, this refinery would be used for experiential training and for teaching purposes. By implication, the institute would once again be involved in the local training and re-training of industry personnel thereby reducing capital flight in conformity with the change mantra of this administration in the area of employing cost-cutting measures in the conduct of government business.”
The minister lamented that the petroleum industry suffered massive setbacks occasioned by the wanton destruction of oil facilities and installations. Meanwhile, the newly created Senate Committee on Local Content said yesterday that it would soon amend the Nigerian Local Content Act 2010 to make its applicability broader than the present focus on the oil and gas sector in the overall interest of Nigeria.
Chairman of the Committee, Senator Solomon Adeola (APC, Lagos West), said “the expansion of the scope of the Act as well as its effective implementation, in areas like construction, manufacturing and other productive sectors increasingly dominated by foreigners will not only create job opportunities for our teeming youths and unemployed graduates but also spur the diversification of the economy.”
In another development, a subsidiary of the Nigerian National Petroleum Corporation (NNPC), Nigerian Gas Processing and Transportation Company Limited (NGPTC), has declared a profit after tax of N15.81billion in 2016, saying on going transformation in the sector is yielding positive results.
Though the profit was due to the write-back of deferred tax of N8.05 billion in 2015, Chief Operating Officer of NNPC’s Gas and Power Autonomous Business Unit and Chairman of NGPTC, Saidu Mohammed, at the 22nd annual general meeting at the NNPC Towers in Abuja said continued support of host communities aided the group’s achievement.
Mohammed stated that the profit before tax for the year ended 31st December, 2016 was N24.4 billion as against N20.9 billion in 2015. This represents an increment of 16.8 per cent, while the profit after tax reduced from N22.6 billion in 2015 to N15.81 billion in 2016.According to him, earnings per share reduced from N4,510 in 2015 to N3,163 for 2016.
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