Kachikwu: Nigeria to Become Exporter of Refined Fuel

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Ibe Kachikwu
  • Says review of gas terms underway

Chineme Okafor in Abuja

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has said that Nigeria will begin to export refined petrol and other petrochemical products within the next four years if plans to ramp up the country’s domestic refining capacity work out well.

Kachikwu stated this recently in Abuja when he briefed journalists on his plans for the country’s petroleum sector.
He noted that if the plans to co-locate new refinery investments within the country’s existing refinery complexes in Kaduna, Warri and Port Harcourt become successful, and the private refinery owned by the Dangote Group comes on stream, Nigeria will produce more petrol than she needs and then export the excess.

He explained that it would take at least three years to get the co-located refineries to begin production, adding that Dangote’s is expected to come on stream between 2019 and 2020.

“The policy on the whole is that we must target a time frame of 12 and 18 months to get out of importation.
“It is not good for the country, it is not a good image, it does not create jobs and we lose tax when it comes to the government and creates a huge amount of quite frankly, emotional backlash when people have to queue looking for fuel,” said Kachikwu.

He said that Nigeria, which imports most of her the petrol she needs for her domestic use was working feverishly to get joint venture partners who can come in and set up new refineries in the country.

“We have advertised recently for co-located refineries and asking people to come and co-locate new refineries into our refineries’ premises so that they can share pipelines, tankages and we are working hard to see that we can complete whatever refinery upgrade we are trying to do within the next 12 to 18 months and obviously for the co-located refineries which are the new ones, targeting to see that we are able to finish within two to three years,” he said.

According to him: “If we do that, obviously we will have excess production capacity for refined products and bear in mind that obviously Dangote is also bringing in its refinery which probably is hitting up about 2019/2020.
“At that point, we begin to look at export market and that really is what we should be doing given the sort of behaviour of oil prices today.”

The minister also talked about improving the incentives for private investments to come in and help upgrade the country’s gas production and supply infrastructure.

He noted in this regards that works on new terms for gas businesses was already going on in the ministry. That, he stated would be discussed further with the oil majors to get their inputs.

“We need to finalise gas terms. A team within the ministry is working very hard now to come up with gas terms and negotiate those gas terms with majors because if the gas terms are there, the investments will go in and once there is certainty we can grow those,” Kachikwu stated.

He added: “Once we have parallel revenues that can come in from gas and some extent the petrochemicals, the reliance on crude oil revenue will ease, so gas is very critical not just in terms of our earning cycle but also in terms of our power mix, being able to supply power to the Nigerian public.”

“I know that the ministry of power is targeting about 7000 megawatts for 2016 and some portion of 2017, and stranded gas is key.

“We need to get infrastructure to get that gas through NPDC or third parties so we have sufficient gas to power the turbine and so we are working on that and the sort of numbers or duration that I see is a period of one to two years to get us this level,” he further explained.

  • Original_Raskal

    When you win elections by lying, you need more lies to stay longer in office! Naija is enjoying the lies! Chei buhari!

    • james_grim_teacher

      Well we know one truth; that the last government stole all the money. They have not even denied that one

      • Plumbline

        james_grim_teacher, let’s assume you are right for a second: If the last government stole all the money, what monies has the APC government been sharing among themselves since they came into power? By the way who constitutes the current government? Are they not essentially the same set of thieving politicians that decamped?

        Except, of course, you are part of this government, please wake up and smell the coffee. You are being used to advance a dishonest, unpatriotic and grim evil cause of diabolical politicians who cause a stir at masses-level and share freely Nigeria with one another at the political elite level, PDP or APC.

        PMB’s government is a daily disaster. They came in with no plans for governance but to take power at all cost and fight if GEJ refused to concede defeat. Shockingly, Jonathan willingly gave up the seat. They have since been lying with sensational news to deflect people from breathing down their necks and seeing the truth that they do not really know what to do. That is the truth!

        • Victor

          Thank you for coming out clean with the truth. I wonder why some Nigerians are still deceiving themselves.

        • usabram

          Plumbline u have all the right to your opinion and I understand with you. Once the budget is approved, the whistle is then blown to start counting on this regime spent to result achieved. For now he is only pushing on security and corruption..

          • William Norris

            Budget approved yet? The one that was PADDED?

            We await the CHANGE…

      • Victor

        Was it the last government that spent $16 billion on power for eight years and had nothing to show for it?. Was it the last government that were doling out money running into millions to senators trying to lobby for third term?. Was it the last government that was involved in the Halliburton & Siemens scandal?.

        • Joe Chucks

          @ victor, may God bless you. Nigerians altogether are corrupt, stupid,mindless zombies and tribal sycophantic and above all blinded and brain washed idiots. Did any body notice that the letter-writer ex president has suddenly gone dumb and deaf in the midst of all the hardship and killings going on in Nigeria?. Tomorrow he will come up to spew poo how he loves this country more than any body else. a whole $16 billion is traceable to him and till today nothing has been heard about it and you see Nigerians praising and worshiping him while demonizing GEJ.

      • Baron Samedi

        Why are you always talking nonsense? Are you afraid to come to terms with yourself for supporting an illiterate? We are all tired of this blame game. If aboki illiterate president cannot take the heat, he can stop ruining our lives by resigning. The excuses and cries are getting on our nerves.

        • usabram

          Let’s see what he will do when the budget is approved.

      • Emmanuel

        So has Nigerian stopped making money since change of guard?, only a fool will doubt a proof. You guys told us you will do many things to turn this country around including $1=N1, to my dismay today, EU is advising Nigeria Leader to still devalue Naira, at almost N500=$1. How can you say past government stole all the monies?. if they stole all the monies then lets call them back to either return all the monies or return to power to correct their mistakes. Amateurs don’t know who to blame except their opponents. The greatest mistake we made as a country is not even allowing people to steal us blue black but changing of barton of governance at the wrongest time (Middle of the storm) when the world economy is warped. The so called last government would have done better with better experience and shock – absorbent – team they got….even with all the stealing Nigeria is beyond any individual or collective lasciviousness.

        • William Norris

          LOL !!!

          It’s all about CHANGE…

          All Promises Cancelled, that’s APC for you.

  • Yahaska

    “We have advertised recently for co-located refineries and asking people to come and co-locate new refineries into our refineries’ premises so that they can share pipelines, tankage and we are working hard to see that we can complete whatever refinery upgrade we are trying to do within the next 12 to 18 months and obviously for the co-located refineries which are the new ones, targeting to see that we are able to finish within two to three years,” he said.
    ====
    OGA Minister
    You did not advertised for co-location of NEW refineries, BUT TOKUMBO one to be brought in. I remind you the test of the scope of work for the co-location below:

    You may need to send tender bulletin to update your initial submission i will advise!!!

    ===

    3.0 SCOPE OF WORK
    The scope of work includes, but not limited to the following deliverables:-
    • Selection of an offshore Refinery in operation for acquisition and relocation to Nigeria by the Investor(s)
    • Establish the selected Refinery name plant capacity is not below 50,000BPSD and also not exceeding 120,000BPSD maximum
    • Establish that selected capacity has full processing plants configuration of Crude Distillation Unit (CDU), Naphtha Hydrotreating Unit/Catalytic Reforming Unit (NHU/CRU) and Fluid Catalyst Cracking (FCC) or Residue Fluid Catalytic Cracking unit (RFCC). Other available process units shall be considered as added advantage
    • Establish the selected Refinery base case design oil feedstock is between Specific Gravity of 0.8400 – 0.8500
    • Establish adequate funds guarantee or syndicate finance of over $500million for acquisition, relocation, integration, modification and commissioning of the Brownfield project on 100% self-funding arrangement by the Investor(s) without any counter-part funding from NNPC
    • Deploy procurement expertise to cover materials specification, vendor supply chain and collaboration for critical/major equipment and integration of plant
    • Execute construction, installation, commissioning and operations of plant, facilities and systems
    • Construction and management of storage facilities and warehousing of materials, Application of materials classification, codification and database for the collocated refinery.

    • James Gunn

      WOW! They actually advertised for Tokunbo refineries. hahahahahah

  • Nze

    1.Nigeria “will” begin………everything said in this country is always in the future.
    All these years, they never materialized. Any difference today?
    2. He says, “if plans to ramp up” …….
    It’s conditional.
    Save this article today. Check it up in the next four years by that time Kachikwu might have been in USA enjoying his retirment or probably contesting for the governorship of his own state.
    My comments are not personal. It’s just the way the system works here.
    At the moment there is fuel scarcity…………….

    • Okafor

      Not in our life time! Maybe in our children’s children’s life time, when all these politicians had all died

    • Toby

      Honestly, maybe Dangote will export but I don’t see NNPC under Nigerian government exporting nothing. Secondly, I don’t see any foreign investor colocating a refinery at the kaduna refinery because it doesn’t make economic sense. Serious investors are not swayed by quota sentiments.

  • vic

    KACHICKWU, RIGHT NOW, IT IS ONLY A FIGMENT OF YOUR IMAGINATION. FIRST, CORRECT THE LONG FUEL QUES AND CONTROL FUEL PRICES.

    THESE PEOPLE ARE REALLY INSANE.

  • vic

    YES, KACHIKWU, CONTINUE TO TELL FALSE STORIES TO GULLIBLE NIGERIANS. WE HAD ENOUGH OF YOUR TYPES, BEFORE. THE PROOF OF THE PUDDING IS IN EATING AND SO FAR POOR MASSES OF NIGERIA HAVE SEEN NO PUDDING. YOU STILL SEEM TO BE ON 2015 ELECTION TRAIL, NEVER MINDING THE CURRENT LONG PETROL QUES AND THE PETROL SELLING AT DOUBLE THE PRICE.

    MR KACHIKWU, YOU NOT ONLY LOOK IMPOTENT, YOUR PETROLEUM ACTIVITIES HAVE ALL THE SAME HALLMARKS OF IMPOTENCY, INEFFICIENCY AND INEFFECTIVENESS- A NATION OF SENSELESS TALK-TALK LIAR POLITICIANS LIKE YOU DECEIVING NIGERIANS ON DAILY BASIS WITH YOUR FABRICATED AND IMAGINARY ROSY STORIES OF NO SIGNIFICANCE OR IMPORTANCE TO A ORDINARY NIGERIAN IN THE STREET. KACHIKWU, , LET US FIRST HEAR WHAT HAVE YOU ACHIEVED RIGHT NOW WHICH IS BENEFITING THE POOR MASSES OF NIGERIA.????

  • Omooba Adekunle Orafidiya

    blablablablabla..(Yawn). APC = All Promises Cancelled. APC is a total fraud.

    • Toby

      All Promises Cancelled!!!

      • BankyMons

        Class.

    • We love political posturing…simple formula would have been to demand that all these IOCs lepers must refine a certain percentage of her production…or get out….which they won’t because of the monumental fraud being perpetuated by these leeches against Nigerian State…No metering…importing possible local content component while we are busy snoozing…question for Chevron and other fakers, why are you guys importing barite into this country???

      • William Norris

        Why would any IOC dabble in a business where GOVERNMENT REGULATES THE PRICES OF THEIR PRODUCTS?

        Think about it, if YOU were in the refinery business, would you invest under such conditions?

        Importing barite, I don’t know what that is, but I’m sure they have good reason. The government of Nigeria is the sole owner of all mineral resources in Nigeria. Nothing owned by government is productive, after all Nigeria owns plenty iron ore deposits in Itakpe, how much steel does Nigeria produce?

        Your abuse of Chevron reminds me of how Nigerians abused MTN…..it’s evil, monopoly, fraudlent, overcharging blah blah blah…..yet in 40 years Nigerians and their government could only provide 400,000 phone lines for the country.

        Nigerians can’t even drill their crude oil & nat gas without the IOC’s. All the indigenous oil companies are fronts for Western companies, you can imagine my shock when I found Seplat is majority owned and controlled by the French. If the IOC’s leave you can be sure your oil will stay underground. The Black Man has no brain for such things.

        • Which product is entire unregulated? Who set prices of these commodity, what role do bonded warehouse owner play in manipulation prices??? Your opinion of black people lacking in ability to run big business is lame and grossly nauseating….your sense of bravado is pedestrian to shout the least…Dangote is building the refinery to sell to the same regulated market you are whinging about…the issues here is that your type that think that white people are superior to black folks is intellectually diseased…most servicing companies in the oil industry are run by Nigerians…talk of abusing Chevron is childlike, they tricked the system to import 20,000mt when the local content act stipulates that 60% of Barite must be sourced from Nigeria…those day when you guys deal with docile and uninformed black folks are truly over…capacity through strategic exploration will return Glory inch by inch and let see where you ilk will have the guts to talk…

          • William Norris

            You hate the White man but you worship the White Man or Arabic God. Why don’t you stick with your own native tribal religion if you’re so sure of yourself? You import barite because Chevron tricked you, who TRICKS you into a Church every Sunday and Mosque on Friday?

            Your Nigeria is a HELL HOLE because you Black Africans have less intellect than a herd of wildebeest. You can’t do ANYTHING for yourselves, EVERYTHING is imported, from barite to religion to food to clothing to cars to everything.

            Keep blaming others for your failures. What works in Nigeria? Go see PLANELOADS of Nigerians travelling to INDIA for simple medical care. I was on a trip to India once, the plane was full of diseased Nigerians going for surgery and other medical treatment. Just recently a notable Nigerian politician died while during surgery in INDIA.

            India was colonized the same way as Nigeria, first by Islamic conquest then by British rule, got independence just 12 years before Nigeria.

            Buzz off, you apes have a long way to go.

          • I don’t hate anyone…you have no idea the vision and strategem behind my structure…I heard you loud and clear…time will tell… Watch the space…

          • William Norris

            Which structure? LOL !

            See a Black African doing the usual, boasting with nothing substantive to back it up.

            Go and swing in the trees where you belong.

          • Hi You don’t know my capacity, why the accusation of being boastful…the swinging will be copied… So set the pace…I suppose you’re probably white with the usual false sense of divinity…you’re not as invisible as you think…Finally I happen to be in a state of mind where every set target are met due largely to diligence adherence to standards…are you Mr perfect???

          • Shetty

            From his statement the Guy certainly has an axe to grind with Nigerians or black people . may be he is sucked by real life Uka of his life savings or may be a young Nigerian yahoo boy made his aunt lost her life savings under the false impression that she has got Mr right . What invincibility the white Men are also vulnerable to either black boys deceiving their folks into giving out their life savings or being hit cunt and dick by some mad rag tag jihadist from Arabia in Europe and USA , Where is their invicblity all human are humans with certain weaknesses White people inclusive.

          • William Norris

            You’re a fool. I’ve never fallen victim to any Nigerian fraudster even though my family has been doing business in the country for decades. I’ve had the usual business disputes brought about by Nigerian greed and dishonesty…I’m sure you’ve had the same issues. Get a grip. We’re here discussing COLLECTIVE, NATIONAL issues, not individual achievement.

            Nigerians are good at Yahoo boy tricks, well good.

            Indians are good at refining fuel and providing healthcare.

            I guess we could reduce it to that.

          • Shetty

            Tell me which country your ancestors are from and I would tell you your collective short comings as a nation .

        • Emmanuel

          Thank you for abusing us. We will somehow sometime in future come out of the cage of lack of confidence in ourselves. Your spoken rightly.

  • William Norris

    Why not just DEREGULATE & PRIVATIZE the petroleum sector? That’s the only real solution!

    • BankyMons

      Good question. Because they know that the populist blabbing of ”we must refine our own fuel” is nonsense. What is the cost of refining crude locally? Will it be produced at a price competitive in the world market? Or is APC government going to make Nigeria a Communist state where factors of production are solely owned by the state? The problem is that the majority of the populace have no idea how a civil, free market economy is run in the first place. It is very very sad.

      • William Norris

        You know what gets me in all this? Nigeria has actually EXPERIENCED the results of privatization & price deregulation in the recent past.

        Since 1999, telecoms, cement, broadcasting and banking have been more or less privatized & deregulated. The results have been stellar in many ways – great job creation, more profits leading to more tax revenue for government, better products and services, no more scarcity in those sectors.

        SO WHAT IS IT THAT NIGERIANS CAN’T UNDERSTAND?

        I had this argument when the telecom market was privatized & deregulated. Nigerians were passionately arguing that NITEL should be retained, that MTN is an evil monopoly, there were those who even argued that under the new system THE POOR WOULD NEVER BE ABLE TO GET PHONES.

        What is the problem? This isn’t some THEORETICAL thing, it’s been tried in REAL LIFE right here in Nigeria and the results have been good. So why do Nigerians generally oppose privatization & deregulation? To the extent that many are happily awaiting the formation of a new government owned National Airline as promised by this government?

        What is so hard to understand about privatization & deregulation?

        • BankyMons

          As they say ‘ignorance is bliss’, that sums up our case in Nigeria. It will get worse before it gets better for Naija!!! Maybe when all the GREAT generals have passed on to the GREAT beyond otherwise there is no hope!

  • ukoette ibekwe

    Isn’t he the same person who said it was cheaper to import petrol than refine locally, just yesterday?

  • ben

    No wahala. We’ll be here in 4 years to witness the back pedaling on another arrogant proclamation in a nation that has become the graveyard of good and vibrant ideas

  • Ade Whenu

    There are people like Dr. Ibe Kachikwu, bright, intelligent and eager to do his best with the job he has been tasked to do. In view of the analysis of his department he is professing what he believes can be achieved within a reasonable time frame. This is called defining a strategic direction for his department.

    You then have the critics on the other hand, who are prophets of doom and emptiness, pessimist at heart, always insulting and never offering anything positive to elevate the suffering of Nigerians but loud at criticising those trying. Most of these critics blindly supported and defended the rogues and thieves that got us into this mess.

    My advise to Dr Ibe Kachikwu is to “reserve a seat” for these critics. “Tell them, I see you, I hear you, but I’m going to do this anyway.” By the merciful grace of God you will celebrate achieving this strategic goal you have set yourself and your department. The critics as usual will find someone else to criticise as that is their way of life. Nothing good ever comes from a pessimistic mind!

    • Toby

      Kachikwu ain’t going to be on that seat in the next 3 years.

      • Ade Whenu

        Bro Toby that is not down to Dr Kachkwu. He is just determined to make a mark regardless of how long he is there and I sincerely wish him the best of luck and successes.

        • Toby

          My bros, Kachikwu is talking too much. He should seat down, do his job, get the results before coming to the front of national media. I hate to see him compete with Lai Mohammed for media attention.
          For me seeing is believing. Do you know that every Nigerian government, military or civilian has promised heaven on this hell called country yet 40 years after it is still a hell?
          I also want you to keep in mind that Kachikwu is not in charge of that ministry. He is the PRO.

    • William Norris

      Kachikwu has PUBLICLY stated that his recommendation to the President on assuming office was to privatize & deregulate the petroleum industry. According to him the Dullard of Daura rejected the proposal. Kachikwu’s exact words were that the Fulani Fool “ruled out” such a policy.

      So all this folderol is for show. The ONLY solution is privatization & deregulation.Every intelligent person knows that. It worked for cement and it will work for fuel. There’s nothing to do with God or patriotism in the matter at hand. Nigeria has enough miracle working Pastors that if God was a solution there would be plenty fuel everywhere.

      • Ade Whenu

        Dear William Norris,

        I am obviously not in a position to validate or refute what comment might have been made by anyone. However the reality is Dr Kachikwu is the current oil minister. Whilst there are a number of options available to him, including privatisation and de regularisation, to address the prevailing situation facing his department, he will be judged by the choices he makes. So let us give him the time and space to do his best.

        For your information Nigeria is only in existence today due to the merciful grace of God, as all its inhabitant are hell bent on reaping it apart.

        • William Norris

          The comment was part of a newspaper interview.

          Yeah, God created hell too, because he is a God of love.

          Nigerians, what a bunch of animals.

          • okwuchukwu

            Why don’t you make your point without insulting or abusing anyone

  • BankyMons

    “Kachikwu: Nigeria to Become Exporter of Refined Fuel”,,,,,,And I ask, would that be at a profit or loss? Whatever this government is doing in this regard, I hope it would be based on tested economically informed policy and not a populist ideology which will move our economy further to the brink. Sometimes, it is far better not to produce a commodity – and yes, it might be wise for Buhari and his APC-led government to study various bilateral trade agreement that will have in place in detail and see whether this local refining of crude is economically profitable before embarking on another wild goose chase venture.

  • M.Saeed

    It was a wonderful hoodwink advice given to Nigeria when oil was discovered. The advice was, “export your high grade Bonny Light oil and import the low grade crude for refining, thus gaining huge profits”. It is over 40 years and oil is already a lost glory. But, Nigeria is still importing crude that suits its refineries. It cannot refine its own oil which is of high grade and has become dependent on imported crude for its own use.

    • BankyMons

      What is the cost-benefit analysis of doing either i.e. importing crude and refining vs refining our own crude? Dismantling whatever refining system we have in place and replacing them with something more up-to-date? What is the long-term benefit of doing any of the above. In the free global market, comparative advantage is key to remaining competitive. There are many internal and external variables to look at before embarking on this useless venture.

  • Mukhtari

    what a disconnect. today’s fuel scarcity and tomorrow’s questionable exportation dream.

  • Baron Samedi

    Tory.

  • Asuk

    Talk is cheap.

  • fagarjaji

    Our current concern is the availability of petrol, how can the NNPC ensures that. Why not clean and repair the depots we have and stock enough petrol using existing pipes, tankers and rail from lagos so that whenever there is a sabotage, we have enough reserve to last for 3 months! Use the same plan for Gas power stations. Why are the power stations not stocking adequate gas in tanks? Amazing Nigerians!

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  • stan Emelogu

    Kachikwu is gradually squandering his reputation because of APC politics. He is almost a scatter brain at the moment darting from one end of the energy spectrum to the other. We still can’t see fuel in Nigeria or buy at the agreed price but the minister is talking about exporting fuel. While we are at it why don’t we export cars, computers and planes. Who are they trying to distract? Don’t we have to refine the fuel in Nigeria before we can export it? At the moment we are not refining for home consumption but the Buhari administration is dreaming about exporting refined products. Okay, we heard. When are we starting?

  • Emiko

    Lies, Lies,lies!!!!! The same story everyday, Nigeria will produce the first Rat that can speak, Nigeria will have all roads airconditioned by 2020, Nigeia will produce in One month the only Ewu Goat that can produe fuel. Lie Lie Politicians.

  • Edim Asekong

    If I don’t listen to their lies, who will listen to mine?

  • Joe Chucks

    To me, APC pranks never worked and will never work. Stories upon stories everyday and nothing to show for it. Fake fraudulent discoveries upon discoveries everyday and no one had been convicted and sent to prison!. Please APC should look for new pranks.
    #APCSHOULDLOOKFORNEWPRANKSONNIGERIANS.

  • Tony

    The ambition is too high, plan to satisfy domestic consumption first. Abi?

  • dozie

    Kachikwu has learnt the art of magic in so short a time! Nigeria, export fuel, in 4 years. Haba! What’s he been drinking or smoking. Kachikwu reminds me of Bola Ige’s time at NEPA, a good man perhaps but completely out of his depth. When a lawyer by training is saddled with engineering responsibilities, you get outlandish and unrealistic promises.

  • Pointout

    Nigeria is always a to become country. Nigeria is to become this, Nigeria is to become that…..we just love to becoming and to becoming.