FG to Unveil New Investors for NNPCâ€™s Refineries
The federal government will in September this year, reveal the new investors that will manage the state-owned refineries – Port Harcourt Refining Company (PHRC), Warri Refining and Petrochemicals Company (WRPC), and Kaduna Refining and Petrochemicals Company (KRPC), the Minister of State for Petroleum, Dr. Ibe Kachikwu has said.
Speaking recently in Houston, Texas, Kachikwu explained that the country now has sizeable willing investors for the refineries, adding that by September 2017, the successful investors would be made public.
“When we came on-board, the refineries were not working but as we speak, we have sizeable investment portfolio for them to an extent that we don’t know who to partner with for the investment. By September, we will unveil the investors for the refineries,” the minister said.
Citing the terms and conditions of the contracts, the minister stated that the new investors are expected to repair, revamp and maintain the refineries.
Kachikwu, however, admitted that when completely repaired, the refineries will not satisfy the country’s consumption need.
The minister said Dangote’s refinery and modular refineries will fill the gap when the refineries failed to meet the countryâ€™s needs.
Also speaking at the conference, the Group Managing Director of NNPC, Dr. Maikanti Kacalla Baru said the 2019 target set by the corporation to exit importation of petrol was achievable.
Fielding questions from journalists on the sidelines of the OTC, Baru, who was represented by NNPCâ€™s Chief Operating Officer in charge of Gas and Power, Mr. Saidu Mohammed, further disclosed that all the nationâ€™s three refineries are producing petroleum products.
According to a statement by the spokesman of NNPC, Mr. Ndu Ughamadu, the corporationâ€™s boss argued that because rehabilitation of the refineries had been hampered by lack of regular Turn Around Maintenance (TAM) over the years, it would take more years to get the refineries fully back to their nameplate capacities.
â€œWe load out at least 5 to 6 million litres of PMS daily and about that same quantity of AGO daily from the three refineries. That is part of what is making the PMS market in Nigeria stable today. We believe that the set target of exiting PMS importation in 2019 is achievable,â€ he added.
The PHRC is 210,000 barrels per day complex conversion plant, which can produce Liquefied Petroleum Gas (LPG), Premium Motor Spirit (PMS), Dual Purpose Koresene (DPK), Automative Gas Oil (AGO), Low Pour Fuel Oil (LPFO), and High Pour Fuel Oil (HPFO).
The Warri refinery is a 120,000 barrels per stream day plant capable of producing LPG, PMS, AGO, DPK, and Fuel Oil from a blend of Escravos and Ughelli crude oils.
Kaduna refinery is 110, 000 per day plant, which produces LPG, PMS , Household Kerosene (HHK), Aviation Turbine Kerosene (ATK), AGO, and fuel oil.