NNPC Needs $500m To Fix Refineries
NNPC GMD, Ibe Kachukwu
THE combined output of the nation’s refineries has hit zero, as Port Harcourt refinery, which held the fort, has shut down.
Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, disclosed this at a Luncheon of the Petroleum Club in Lagos, yesterday.
Kachikwu said with the shutdown of the Port Harcourt refinery, combined output in the last few weeks has dropped from 1.9 per cent to zero.
In its latest monthly report for September, the NNPC had stated: “Only Port Harcourt refinery produced 31,008 million metric tonnes of petroleum products out of 35,648 MT (261,371.14 barrels) of crude processed at an average capacity utilisation of 5.77 per cent.”
Kachikwu, who described the poor refining capacity as worrisome, however, said there are plans to restore the lost glory of the refineries and ensure they contribute massively to national fuel consumption.
He disclosed that the corporation would need about $500 million to fix the refineries and that he is determined to source the fund in the next seven months to one year. “Some people are sabotaging efforts through pipeline vandalism, but we will block all the leakages and fix the problem,” he added.
Decrying ongoing fuel scarcity, Kachikwu said the corporation is speeding up payment of subsidy claims, adding that plans are also in the pipeline to review the subsidy system and bring the amount down from N20 to about N5 per litre.
He said: “Products distribution is key to NNPC. We have, therefore, sent out about 5000 trucks to various locations across the country in the last two days.”
Kachikwu restated his commitment to turn around the NNPC to a world-class company within the next six to 12 months and ensure that it works efficiently in a transparent and accountable manner.
“We are out for transparency. We will be engaging the Presidency on a weekly basis, the governors monthly, and the National Assembly on a monthly basis, while we continue to publish our reports monthly,” he said.
The NNPC boss, who stressed that these are trying times for the industry, said the problems are more serious than people think, hence Nigerians must work hard.
He said the President is deeply worried about the prevailing situation in the industry and has given him the mandate to fix the problems, adding: “I will never do things that will compromise my integrity.”
Kachikwu said his administration has recovered $420 million from the legacy crude swap contract, increased gas supply to power plants at about 231 million standard cubic feet per day (mbpd) and planned to hit 240 mbpd next year.
“In 12 weeks at the NNPC, I have enhanced commercial value, increased productivity, increased profitability and improved governance at the corporation,” he stated.
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11 Comments
Oh no, please don’t fix them! Please, please just demolish them because they aren’t fit for purpose.
Nigerians were told only a month a ago that the Refineries have started working through Buhari’s ‘body language’, today we are being told that there is zero output from the same facilities. They are even pointing to pipeline sabotage as a challenge. Hahahaha! I’ve been emphatically stating it on this platform, Niger Delta can not be economically sustaining this country only to be demonized by illiterate parasites. There is always a prize to pay for human wickedness.If Buhari is waiting for militancy as a response to these insults to enable him and his false propaganda groups to deploy soldiers, they will wait for eternity but will still get the rewards of their actions. We wait
God bless u my brother! I thought I was the only one who heard it o!
Weldone brother!
The country should as a matter of urgency take a cue from Malaysia. Instead of spending a whooping $500 million on our old refineries, investment should be made in European refineries on conditions similar to Malaysia.
Most of the refineries in Europe are modern and under-utilised. In fact a lot of them are now shut due to this reason.
I will assume that this is APC’s opportunity to recoup electoral expenses as I do not understand why any right thinking person who is not a thief or would be thief would ever suggest that the refineries be refurbished again. OBJ sold this at the twilight of his regime and Yar Adua took it back and spent about $400M to do TAM. Nothing came out of the repairs. Now, you want to spend$500M. Dont you people fear God? How much does it take for us to start building a new one steadily and remove the useless subsiudy which does not benefit the masses anyway and then use the savings to complete the refineries? When bad things start happening to you people, you will start praing to God not realising that it is the causes of the suffering masses that is on you all !
There has NEVER BEEN THIS MUCH TRANSPARENCY IN THE NNPC… even when PMB and co created it in 1977 as petroleum minister. that’s something… lets give them a chance…
“there are plans to restore the lost glory of the refineries “. Can anybody in Buhari’s government be ever precise about the SPECIFIC plans they have?????
Body Language has its limits.. lol
Now was the last government really right to dismiss using this old refineries? Guess we would know after another $ 500 Million . clue less bunch that just live for propaganda
If Nigeria requires $500m to fix our refineries, how much then will it cost to build new ones?
whoa, ineffective leaders. for the amount of money we have spend during repairs on this refineries, we could have had 2 modular refineries installed in every region of the country. This is yet another means of looting, we spend 500 million to repair them, while we continue to get looted via subsidy. what has changed from the past administration. every president spend huge amount of money repairing refinery, yet not one seems to work for more than 2 weeks.
this problem can be fixed. deregulate the market, this would allow investor to invest in refineries. Allow states and investor to invest in modular refineries, which are cheaper and easy to install. make the refineries publicly traded companies, so that capable investor can turn it around with private funds, while Nigeria government has a non operation ownership of it.
We will review and take appropriate action.