A Review of the Nigerian Energy Industry

Nigeria to spend $1.6bn on rehabilitation of local refineries

09 October 2012, Sweetcrude, ABUJA – NIGERIA says it will be spending $1.6 billion on the rehabilitation of its ailing local refineries.

The funds would be going into the turnaround maintenance, TAM, of the three refineries located in Warri, Kaduna and Port Harcourt in an attempt to bring them back to life.

Petroleum Resources Minister, Mrs. Diezani Alison-Madueke, disclosed this, Monday while appearing before the Senate Committee on Petroleum Resources Downstream Sector,

According to the minister, the TAM, which is expected to begin in January 2013, is scheduled for completion in October 2014.

It is only after this that the three refineries could operate at full capacity utilisation, the minister told the lawmakers.

Reports indicated that the Warri and Kaduna refineries were operating at about 25 per cent capacity utilisation about two months ago, but the Port Harcourt refinery has remained down.

Alison-Madueke stated that over 75 per cent of the parts needed for the rehabilitation of the Port Harcourt refinery has already arrived the country, adding that $32 million had been paid to the original builder of the refinery as part of the efforts to revive it.

A total $147 millio would be expended on the Port Harcourt refinery TAM and another $406 million on its modernisation, she added.

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  • Rehabilitation of these refineries has become a shifting target. Successive petroleum ministers and group managing directors of the NNPC have always talked about TAM which are either partially carried out or not carried out at all and nothing is heard of where the monies budgeted went. The Nigerian government is simply not equipped to manage the refineries and must divest immediately to spare the country attendant momumental waste of scarce funds and the embarrasment the nation suffers in the international community. We advice the government to divest immediately and if indeed it can afford to spend $1.6 billion, enter into a PPP with a reputable entity for construction of a 500,000 barrels capacity refinery.

  • Francis Akeredolu via Facebook

    same old story.

  • Chukwu Nonso via Facebook

    This sum can be effectively utilized in the construction of 2 brand new refineries, with an estimated delivery time of 10 months!

    For how long shall we continue to rehabilitate the old refineries, while spending on fuel importation per annum, an amount that can buil 10 brand new refineries, each capable of lasting more than 30 yrs with appropriate maintenance???

  • Thieves!!! They’ve started again.