FG to overhaul refineries for three years to drive local production
23 August 2019 |
4:28 am
To achieve its 2023 target of ensuring local refineries operate optimally, the Federal Government has said it has begun the overhauling of the facilities, commencing with the Port Harcourt refinery.
Port Harcourt Refinery
To achieve its 2023 target of ensuring local refineries operate optimally, the Federal Government has said it has begun the overhauling of the facilities, commencing with the Port Harcourt refinery.Giving itself a three-year deadline, the Nigerian National Petroleum Corporation (NNPC), said it plans to review operations of the refineries, support condensate plants, and open the midstream sector.
Indeed, the nation’s four refineries recorded operation of just 5.55 per cent of their combined nameplate capacity of around 445,000 barrels per day (b/d), according to data released in late Ma,y by the NNPC, underlining that the oil-rich nation still relies heavily on imports for its fuel needs.
Nigeria’s refineries, which include the northern Kaduna refinery and two plants located in Port Harcourt, and the Warri refinery, have not operated beyond a quarter of their nameplate capacity for some time, mainly due to sabotage attacks on pipelines carrying crude to the plants as well as technical problems after years of neglect.
NNPC announced in March, that it had secured the service of Italy’s Maire Tecnimont to handle the overhaul of the 210,000 b/d Port Harcourt refinery complex, with oil major Eni appointed as a technical adviser.
Group Managing Director, NNPC, Mele Kyari, while speaking on ‘Harnessing oil and gas potential for national development’, at the yearly conference of the Association of Energy Correspondents of Nigeria (NAEC), said Nigeria remains a net importer of petroleum products due to the current state of the refineries, and the long absence of private investment in the refining sector.
Kyari, who was represented by the Chief Financial Officer (CFO) of the Corporation, Umar Ajiya, said the refineries had not been rehabilitated for a long time, adding that rehabilitation programme will aid local production.
“Thus, we require more investment to revamp and expand our domestic refineries and associated infrastructures to support the growth of the downstream sector and guaranty energy security to the nation. In this respect, NNPC under my purview would leave no stone unturned to ensure our 445,000-barrel refineries in Port Harcourt, Warri, and Kaduna work to an appreciable level or capacity.
“We are progressing with the establishment of condensate refineries to fast-track domestic supply of petroleum products. In the same vein, the corporation would support the actualisation of the 650Kbbl/day Dangote Refinery, as well as other private initiatives along this line. Our plan is for Nigeria to become a net exporter of petroleum products by 2023,” he said.Kyari, however, emphasised the need for an enabling environment to attract the right investment that is being subdued by the nation’s fiscal regimes.
According to him, the Petroleum Industry Bill (PIB), must run its full cycle this 9th National Assembly, implying that there is an absolute need to fast track its enactment processes. “Related to this is the fact that we need to build on the security of the nation’s Industry assets across the country. As stakeholders in the commonwealth, we must ensure we keep away miscreants from our pipelines to pave the way for efficient operations in the sector,” he added.
On his part, the Chairman, Oil Producers Trade Section (OPTS), and Managing Director of ExxonMobil Nigeria, Paul McGrath, expressed concerns about the cost of doing business in the country, adding that security costs were escalating.McGrath urged government and operators to explore modalities and mechanisms for cost reduction, while advocating stable and competitive fiscal policies and a healthy contract integrity culture.
Related
1 day ago
The Lagos Chamber of Commerce and Industry (LCCI) is deeply worried about the various economic headwinds confronting the stability of the Nigerian economy.
1 day ago
The World Bank Group and the African Development Bank Group are partnering on an ambitious effort to provide at least 300 million people in Africa with electricity access by 2030.
1 day ago
Worried by the dwindling oil production and the need to drive investments in the nation’s oil and gas sector, the Federal Government, through the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has underscored the imperative of ramping up production as a pivotal strategy to ensure stability in the midstream and downstream sectors of the industry.
1 day ago
The Nigerian Ports Authority (NPA) is awaiting the Debt Management Office's (DMO) final review and approval of Citibank's $700 million loan mandate, which will fund the rehabilitation of the Apapa and Tin-Can Island ports in Lagos.
1 day ago
Access Pensions has emphasised its commitment to offering thorough guidance and assistance to customers interested in Pension Backed Mortgages (PBMs).
2 days ago
Stakeholders in the insurance and pension industry have called on operators in the sectors to adopt artificial intelligence (AI) to drive business expansion in the country.
2 days ago
Though it does not have the power to regulate prices, the Federal Competition and Consumer Protection Commission (FCCPC) will deploy an existing legal framework to enforce fair competition and consumer protection provisions to achieve fair prices of commodities.
2 days ago
Inflation in Nigeria is reaching its peak now and will decelerate toward the middle of the year, Director-General of the Budget Office of the Federation, Ben Akabueze, has said.
2 days ago
Nigerian Breweries (NB) Plc has disclosed that the proposed N600 billion recapitalisation scheme by way of rights issue would settle N153 billion outstanding foreign exchange (FX) losses and part of its local bank debt facility.
2 days ago
The International Renewable Energy Agency (IRENA) is seeking a new approach to energy security amidst geopolitical concerns and a push from fossil fuels.
×
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.