Reps Pass Motion To Stop Refineries Operations

Reps Pass Motion To Stop Refineries OperationsThe House of Representatives has passed a motion urging the executive to stop the operations of all refineries in Nigeria due to the huge debts being incurred despite the fact that they are barely functioning.

The motion was passed on Wednesday.

It pointed out that the inability of the refineries to serve local consumption is responsible for the country’s dependence on imported refined products and resultant fuel scarcity across the country.

The House has also called for the issue of privatization of the refineries to be revisited and urgently considered.

DPR Shuts Down Petrol Stations In Kogi

dprThe Department of Petroleum Resources (DPR) in Lokoja, has sealed off dozens of filling stations, for adjusting dispensing pumps and over-charging buyers.

The regulatory agency stormed Lokoja, the Kogi State capital and clamped down on dealers of petroleum products and operators of fuel stations, who sell above the official pump price of 87 Naira per litre.

The DPR is however, in their trail and would continue to clampdown on those selling above the normal pump price .

DPR has the statutory responsibility of ensuring compliance to petroleum laws, regulations and guidelines in the Oil and Gas Industry.

The discharge of these responsibilities involves monitoring of operations at drilling sites, producing wells, production platforms and flow stations, crude oil export terminals, refineries, storage depots, pump stations, retail outlets, any other locations where petroleum is either stored or sold and all pipelines carrying crude oil, natural gas and petroleum products.

Lack Of Comprehensive Turn Around Maintenance Responsible For Poor Performance Of Refineries – NNPC

nnpcThe Nigeria National Petroleum Corporation (NNPC) has blamed the inability of the corporation to perform a comprehensive turn around maintenance of refineries for the poor performance recorded.

The Group Executive Director, Refining and Petrochemicals, Mr Ian Udoh, while speaking at a budget defence session, told members of the Senate Committee on Petroleum that although the refineries had the capacity to process 445,000 barrels of crude oil per day, they could currently process only 60,000 barrels per day as a result of maintenance problems.

Mr Ian also told Committee Members that the NNPC could not afford the outrageous bills quoted by Saipem, a foreign firm operating in Nigeria for the turn around maintenance of the refineries.

According to Iah Udoh, Saipem offered to maintain Port Harcourt refineries at $550 million, Kaduna refineries at $600 million and Warri refinery at $180 million.

FG partners with American and local consortium to build six new refineries

The Federal Government, on Monday, signed a Memorandum of Understanding with an American and Nigerian Joint Venture Group, Vulcan Petroleum Resources Limited and Petroleum Refining and Strategic Reserve Limited, respectively, for the construction of six modular refineries with combined capacity of 180,000 barrels per day.

The project is estimated to gulp N697.5bn while two of the refineries are expected to be completed within the next 12 months.
The refineries are to be located in areas where there are crude oil pipelines in collaboration with the Nigerian National Petroleum Corporation.
Each modular refinery, when completed, will refine up to 30, 000 barrels of crude oil per day and produce up to five million litres of petrol, diesel kerosene and LPFO.

The Minister of Trade and Investment, Olusegun Aganga, signed on behalf of the Federal Government, while Vice-President/Director , Vulcan Petroleum Resources Limited, Jim Mansfield, and the Chairman, Petroleum Refining and Strategic Reserve Limited, Edozie Njoku, singed of behalf of their companies respectively.
Also present during the signing of the MoU, was the former Governor of Anambra state, Chukwuemeka Ezeife.

Speaking during signing ceremony, Mr Aganga, said the event represented a major milestone and paradigm shift in President Goodluck Jonathan’s administration plan towards Industrial Revolution, job creation, wealth generation.

“This is a historic moment and a big step for us as a country .Apart from power, one of the critical areas which President Goodluck Jonathan has made a priority is to have functional refineries. My understanding is that by the time the whole project is completed, the cost is estimated at about $4.5bn.

“This is the beginning of changing our old paradigm from exporting just raw materials and exporting jobs to the Western countries. This is something that we have done as a country for so long time. There is no nation that has moved from being a poor nation to a rich one by exporting raw materials without having a vibrant industrial base. That is what we have to change for us to be a rich nation, and that is what of National Industrial Revolution Plan is based on.”

Aganga said that the Ministry of Trade and Investment would work together with the Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation to ensure the actualisation of the projects.

He added, “The Nigerian Industrialisation Revolution Plan is based on areas where we have comparative and competitive advantage as a country. The signing of the MOU is the beginning of the process. The Ministry of Trade and Investment has not done this alone. We are working in collaboration with the Ministry of Petroleum Resources and the NNPC. We are working together as a team to ensure that in 12 months’ time, we witness the commissioning of the refineries.

“What we have done is to carry out due diligence on the prospective investors before we even start having discussions with them. We try to find out where they are coming from and their antecedents, whether they have done what they are planning in other parts of the world, and also if they have the money to invest.”

Speaking during the event, the Vice-President/Director, Vulcan Petroleum Resources Limited, Jim Mansfield, said the investment was a testimony that “Nigeria is a good place to do business.”

“The funding for the project will be a non-Nigeria source and is from investors who firmly believe that Nigeria is a good place to do business. We also believe that Nigeria is open for business,” he said.

The Chairman, Petroleum Refining and Strategic Reserve Limited, Edozie Njoku, said that the company would work with its foreign technical partner and the regulatory authorities to ensure the successful completion of the project within the time frame.

“The six refineries will have a combined capacity to refine 180, 000 barrels of crude oil within the country and produce up to 30 million litres per day of refined products within 30 months. The entire modular refinery complex is built in the United States, including all piping and electrical and test operated to assure that each plant will achieve 100 per cent of its approximately five million litres per day production capacity.

“It will take approximately six months to construct each refinery in the USA, one month to test and dismantle the refinery for shipping; one month to commence shipment of the refinery complex to Nigeria; followed by four-five months to re-assemble the refinery in Nigeria and commence full production. The modular refinery is far easier to construct and maintain, and it can be constructed at any place and relocated to any site depending on the need.
Former Governor of Anambra State, Chief Chukwuemeka Ezeife, commended the efforts of the Minister of Trade and Investment, Mr. Olusegun Aganga, in facilitating investment into the country.

He said, “The eagerness of the Olusegun Aganga in handling matters expeditiously is very commendable. This is how things are supposed to be done in this country.”

JTF burns down three illegal refineries, 4 die

Four children, including a one-year-old baby, lost their lives while 40 houses at Ebeberegbene community in Burutu Local Government Area, Delta State were burnt down when some members of the Joint Task Force, JTF, codenamed Operation Pulo Shield, attacked and razed illegal oil refining factories, in the community on Wednesday.

Sources disclosed that the soldiers arrived the community at 6.30 am, putting fire on houses in a bid to raze down the three local illegal refineries that were located near the community.

Chairman of the community, Mr. Pius Oruma, who confirmed the attack, said, “Over 40 houses were burnt.”

Another community leader, Mallam Yusuf Eregbene, said: “Over four people were feared dead while thousands fled into the bush for safety, as the soldiers prevented people from carrying their belongings…”

The Mallam noted that the community was not aware of the existence of the illegal oil refineries that soldiers came to destroy, saying: “If we were aware, we would have arrested the owners. The occupations of our people are fishing and farming…It was last two years that the community stopped this local refinery business in our territory. Since then, it was free from this illegal work because we have a law that when you are caught, you will pay a fine of N50, 000.This led to the stoppage of the business because the refineries are not good for the health of our people.”

Government to Play Minimal Role in the Running of New Refineries- Diezani

Diezani Alison-Madueke

As the pressure on the Federal Government to boost local refining continues to mount, the minister of petroleum says plans for the green field refineries also known as new refineries billed for Lagos, Bayelsa and Kogi states envisaged to add 750,000 barrels per day of extra refining capacity to Nigeria’s current 445,000 barrel per day capacity, is still on course.

She says besides this move, the sector is being thrown open to capable investors and the federal government participation in the running of the new refineries will be minimal to allow better efficiency.

She spoke with journalists at a meeting in Abuja with heads and operators of the nation’s refineries and other key players in the sector on how to confront the issues stalling local production.

In a seperate event, the Kalu Idika Kalu led task force on refineries was inaugurated with a 60 working days timeline to complete its mandate of unravelling the issues bedevilling local refining.