The Group Manading Director of the
Nigerian National Petroleum Corporation (NNPC), Dr.
Emmanuel Ibe- Kachikwu, on Wednesday in Kaduna
said the Federal Government would consider
establishing new refineries for optimal performance
of the oil sector.
Kachikwu stated this, while addressing Energy
Correspondents shortly after he was conducted round
the Kaduna Refining Petrochemical Company (KRPC)
in Kaduna.
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 we
can get to where we 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 this
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 different from models we are pursuing
right now “.
According to him, “what really is the truth about
refineries is that a lot needs to be done in terms of
applying different model of development. So we are
going to be working to clarify those solutions”.
He said the NNPC management was committed to
ensure that within the next 90 days time frame some
elements of the KRPC plant would work the way they
would be expected.
“But never will we 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.
“Aas 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 for the last testing is that
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.
“We working on a very enhanced, very robust, very
accelerated programme with the security forces to
deal with that.
“We are trying everything that we can 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 laud as ever.“
On the issue of crude oil swap deals, the NNPC boss
said that the essence of the swap cancellation was
that the company was saving over 200 million dollars
by virtue of doing that.
“You have transparency in the deal per month and
you have transparency that embedded in those
processes.“
Kachikwu said that sufficiency and issue of efficiency
had nothing to do with canceling or non canceling
crude swaps.
“You less discretion by whoever is making decision in
terms of allocation. We can leave trading and focus
on what is more important in the oil industry. I can
assure you that there are structures put in place.
“You will get product the way you need it. We are
working on that. Even though we have canceled swap,
you are going to have replacement swap contract
lined along very efficient and very transparent
processes that will save us lot of money.
“The refineries are not working to global best
practice right now; they are all down, so what are we
talking about global practices. We are dealing with
major situation where pipelines have perpetually
tools for destruction.“(NAN)
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