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NNPC plans to end fuel importation in 18 months

By Collins Olayinka, Abuja
16 October 2015   |   4:11 am
A time frame of 18 months has been set by Nigerian National Petroleum Corporation (NNPC) to end overseas refining of crude oil and boost local production capacity that will guarantee self-sufficiency.

NNPC-RefineryA time frame of 18 months has been set by Nigerian National Petroleum Corporation (NNPC) to end overseas refining of crude oil and boost local production capacity that will guarantee self-sufficiency.

The Group Managing Director of the corporation, Dr. Ibe Kachikwu, who announced this in Abuja yesterday at the opening of bids for Offshore Processing Agreements (OPAs), explained that the public opening of the bids is to ensure transparency in the businesses of the NNPC.

His words: “I hope that this is going to be the last OPA that the corporation will go into. Our aim is to get our refineries to a point where they can produce the products that we need because that is where we should be headed. That is the target we have in the next 18 months. I hope that at the end of this process, we will have companies who have solid investment in this country because this is not just a trading issue; a one-off transaction, we must work together on the altar of progress.”

The GMD stated that exposing the processes of NNPC business conducts will engender confidence amongst its publics. “This bidding process is a very important occasion for us because these are those little steps that ultimately lead to destination that one wants to get to. I thought that the opening of the bids must be very transparent and open to the public so there wont be any impression that something sinister is going on. The NNPC doors are opened very wide to every sector that is aimed at bringing results that are beneficial to the country. This is not just a cut cost to the corporation, but it also sends the right information to the public where the NNPC is headed.”

He also said that the corporation would continue to tinker with what the terms would be in order for the country to get the very best yield in the market.

On her part, the Managing Director of Pipeline Products Marketing Company (PPMC), Mrs. Esther Nnamdi-Ogbue, who superintend over the exercise, said the processes were stringent to exterminate third parties and ensure credibility of the participating firms.

Her words: “We are looking at companies that have affiliation with refineries or access to refineries. We will require them to show us agreements that have been signed with refineries so that we can eliminate third party in the arrangement. We are also looking at those who have the muscle to support this arrangement with a minimum turnover of those companies to at least $1billion. We will also be looking at the training of Nigerians who work with the successful companies.”

While she stressed the need to encourage participation of local firms and pointed out that such involvement would be done within the same platform with the foreign firms.

“Much as we support Nigerian companies, the NNPC and PPMC are not charity organizations. In other words, these companies are operating with commercial mindsets, which place high premium on profitability. Therefore, we will prioritize profit while ensuring the price is right. This process entails taking Nigeria’s crude into refineries and process it in the refineries while we pay processing fee. Nigerian companies are encouraged to participate but must also give the right price. NNPC must ensure the right price is adhered to so as to ensure that Nigerians get the best price at the filling stations. Otherwise, if the process is flawed, Nigerians are going to be made to pay for the shortfalls at the filling stations,” she explained.

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