A Review of the Nigerian Energy Industry

NNPC decries politicization of its operations

NNPC Towers
NNPC Towers

*Says report of N152bn expenses on refineries are politically motivated

13 January 2015, Abuja – The Management of the Nigerian National Petroleum Corporation, NNPC has raised the alarm over what it termed deliberate distortion of facts and figures about its operations by desperate vote-seeking politicians’ intent on gaining partisan advantage by hook or crook.

The Corporation in a statement noted that as a public entity with fiduciary responsibility to the government and people of Nigeria, the NNPC is focused on its mandate and would not be distracted by the spate of politically inspired polemics against its operations.

The Corporation described as fiction the recent report credited to some nondescript civil society organizations, alleging that the NNPC has committed N152 billion to execute the Turn Around Maintenance of four refineries between 2011 to 2013.

The Corporation explained that though a decision was taken in 2011 to rehabilitate all refineries using the Original Refinery Builder (ORB) of each of the refineries, the Corporation made a recourse to a new strategy after the ORBs declined participation and nominated some partners in their stead who came up with outrageously unfavorable terms.

“The nominated partners, as sole bidders came up with humongous price offers after two years of thorough and exhaustive scope of work definition and price negotiations. The proxies were also unwilling to provide post rehabilitation performance guarantees,” the NNPC said.

It noted that the new arrangement which kicked off in October, 2014, entails phased and simultaneous rehabilitation of all refineries using in-house and locally available resources in line with the spirit and letters of the Nigerian Content Law.

The strategy also embraces the direct use of Original Equipment Manufacturer representatives to effect major equipment overhaul and rehabilitation.

The NNPC said that it is projected that the new strategy would create 70 per cent reduction in costs which would help in mitigating the financing challenges of NNPC visa-a-vis refinery rehabilitation.

“The phased rehabilitation programme started in October 2014, after the required funding stream was established, and will last for 18 months,” the Corporation disclosed.

The Corporation hinted that over 60 per cent of TAM materials have been delivered to Port Harcourt Refinery and installation of such equipment and parts is in progress while material orders and deliveries to Kaduna and Warri refineries are substantial and sufficient to operate the production process.

The NNPC called on members of the public to discountenance sensational comments about its operations being bandied about by some desperate politicians who are bent on achieving partisan political objectives.

In this article

Join the Conversation