Govt to build new refineries to support old ones – Kachikwu

Warri Refinery.

Warri Refinery.

*Says cancellation of oil swap deals saved $200m

Oscarline Onwuemenyi

11 September 2015, Sweetcrude, Abuja – The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Emmanuel Ibe-Kachikwu, has said that the Federal Government would consider establishing new refineries for optimal performance of the oil sector.

Kachikwu stated this in Kaduna on Wednesday, while addressing Energy Correspondents shortly after he was conducted round the Kaduna Refining Petrochemical Company (KRPC).

The GMD said the NNPC was working to get the refineries across the country to work to their optimal production with new business modules, new commercial modules and new approach on how they could get the country to where it should be.

“What is obtainable is that most of our refineries are close to 30 to 40 years old; we need to begin to look at building new refineries in the same land space where they can share facilities so that you will have something to lean on when these old ones are beginning to kick out.

“Obviously, we need new modules because with these modules it won’t get us very rapidly. Three out of the six units of the plants were down; some of them for a very long period. We need to sit down and see what modules, how do you turn around the new refinery. How do you work on emergency basis components of the ones that is there.

“Kaduna has a very unique place in my heart like I said because I grew up in Kano and I used to come here often.

“It is so key for the survival of the economy of Kaduna State and the rest of the North and we really need to focus on getting this things work and getting it to expand.

“Without them we are not going to get out of problems of fuel supply, power supply and all that. So we are going to have a whole commercial structure; a whole engineering structure, a lot needs to be done differently from the models we are pursuing right now,” he said.

He explained that the truth about building new refineries is that a lot needs to be done in terms of applying different model of development, saying that the government would be working to clarify those solutions’.

He said the NNPC management was committed to ensuring that within the next 90 days some elements of the KRPC plant would work the way they would be expected.

“But it will never get it to where I will love it to be. So, simultaneous reserve will enhance process to see the rest of the units getting to some level of maintenance and repairs.

“On security of the pipelines, we are doing quite a lot. As you are aware that we are working with the security forces to enhance the Warri to Kaduna points and they have been tested now for integrity, and I think by my understanding of the last testing is that it is fairly okay now to take control if the FCC units are working.

“So, on a short term basis, we have been able to deal with that medium term basis; we are going to work with the security agencies to ensure that the sort of destruction you find on pipelines not just from Warri to Kaduna, but the whole country, becomes a thing of the past.”

He said the Corporation is working on a very enhanced, robust, and accelerated programme with the security forces to deal with that.

“We are trying everything that we can do to it and we are sending a body language that the business of messing around with the pipelines is over and I think the message is going round as loud as ever,” he said.

The NNPC boss also noted that the country has been saving over 200 million dollars since the cancellation of crude oil swap deals

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