Finally, FG to Build More Refineries

No Comments » July 24th, 2008 posted by // Categories: Energy Development Project



 

 

 

THIS DAY

Finally, FG to Build More Refineries

By Chika Amanze-Nwachuku, 07.24.2008

 

 

The Federal Government is considering building more refineries to ensure the availability of adequate petroleum products in the country, it was revealed yesterday.

The acting Group Managing Director of the Nigerian National Petroleum Corpora-tion (NNPC), Alhaji Abubakar Lawal Yar’Adua, disclosed this while playing host to officials of the Ministry of Energy from the Republic of Uganda.

He said government’s decision to build additional refineries in the country was not aimed at meeting domestic and commercial needs, but at deriving the full potential of the nation’s hydrocarbon resources.

“Nigeria will be the hub for petroleum products supply in West Africa and indeed the entire African continent. Additional refineries in the country will go a long way to satisfy domestic consumption and generate more revenue for the country. The nation’s refineries are currently producing at different level of effectiveness,” he said.

He noted that the nation’s oil and gas industry was undergoing reforms aimed at repositioning the sector for better performance, adding that after the restructuring, the NNPC would be able to source for funds to execute its projects and declare dividend to its shareholders.
“The reform in the industry is in line with government’s desire to make NNPC function purely as a profit oriented, commercial and duly capitalised limited liability company with right to raise funds for its projects and operations just like its peers around the world,’’ the GMD told the visitors.

The NNPC boss stated that the local content initiative of the Federal Government was aimed at domesticating the “industry spend’’, which is in line with government’s desire to boost the economy.

He described the Ugandan visit as timely, coming at a time Uganda just discovered hydrocarbon resources in commercial quantity, and assured the Ugandans that with the discovery, the relationship between the NNPC and Uganda would flourish in the long run.

He advised the Ugandan energy officials to take into consideration the issue of local content as well as building refineries from the outset so as to avoid the mistakes of sister countries that have hydrocarbon resources.

Earlier, the head of the delegation, Mr. Mbabazi Araali, had informed the GMD that they were in the country to learn about the activities of the NNPC in order to be in a better position to handle the newly created Ugandan Oil and Gas Company.

Currently, Nigeria’s daily fuel consumption stands at 30 million litres per day but may rise to about 40 million owing to the rate of urbanisation and economic development.

The nation’s four refineries in Warri, Kaduna and Port Harcourt with combined capacity to produce 445,000 barrels per day currently operate below their installed capacities, a situation which makes the country to still depend on product importation to meet its needs.

 

 

 GUARDIAN

Thursday, July 24, 2008

Govt unfolds plan to build more refineriesBy Yetunde Ebosele

FINALLY, Federal Government may have now reversed itself on ownership policy of oil refineries, with its latest decision to build more refineries in the country.

The government, under its deregulation policy, had opted to dump stakes in refineries, preferring instead to sell its facilities and encourage private investors to take over and establish their own plants.

In 2000, Federal Government, under its deregulation policy, gave licences to 18 companies to set up refineries, while putting up for sale, its own facilities around the country.

But eight years after, with failure of private investors to set up the refineries, government has now unfolded plans to build new ones around the country.

The development came after the current administration reversed the sale of the two Port-Harcourt refineries and the one at Kaduna.

The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Abubakar Yar’Adua, dropped hints of this new policy direction while receiving officials of the Ministry of Energy from Uganda, in Abuja.

Yar’Adua explained that the new policy would assist the country in actualising its plan to be the hub for petroleum products supply in the continent.

According to him, additional refineries would go a long way to satisfy domestic consumption and generate more revenue for the country, since the available ones are currently producing at different levels in effectiveness.

The existing refineries, with installed production capacity of 445,000 barrels per day (bpd), are currently processing about 360,000bpd, which could have translated to 10.47 million litres a day. The daily domestic consumption in the country currently stands at 30 million litres.

Besides, he told the visitors that the nation’s oil and gas industry was undergoing reforms, aimed at repositioning the sector for better performance.

After the restructuring, he said the NNPC would be able to source for funds and execute its projects and declare dividend to its shareholders.

“The reform in the industry is in line with government’s desire to make NNPC function purely as a profit oriented, commercial and duly capitalised limited liability company, with mandate to raise funds for its projects and operations, just like its peers around the world,” Yar’adua said.

According to him, the NNPC is pursuing the issue of local content in the industry, aimed at domesticating the “industry spending”, which is in line with government’s desire to boost the economy.

The GMD described the Ugandan team’s visit to share the NNPC experience as timely, since the East African country just discovered hydrocarbon resources in commercial quantity.

With the discovery, he noted that the relationship between the NNPC and Uganda would flourish in the long run.

To this end, he advised the officials to prioritise the issue of local content, as well as building refineries from the onset, so as to avoid the mistakes of sister countries that have hydrocarbon resources.

Earlier, the Head of the Ugandan delegation, Mr. Mbabazi Araali, informed the GMD that they were in the country to learn about the activities of the NNPC, in order to be in a better position to handle the newly created Ugandan Oil and Gas Company.

Opt In Image
Send Me Free Email Updates

(enter your email address below)

Leave a Reply

*

Home | About | Contact | Login