Tag: Refineries

NNPC spent $1.56bn to repair moribund P’Harcourt refinery – NNPC GMD

Aminu Imam

The House of Representatives Ad-Hoc Committee on the state of Nigerian refineries was told yesterday that a total of $1.555 billion, (roughly N646.34 trillion), was budgeted for the overhauling of just the Port-Harcourt refinery. The Group Managing Director, (GMD) of the Nigerian National Petroleum Company, (NNPC) limited, Mele Kyari, made the disclosure while being grilled by the panel over the total contract sum for rehabilitating the nation’s refineries. At the resumed hearing of the committee, chaired by Hon. Abdulganiyu Johnson to determine the actual cost of monies spent so far…

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‘Despite producing zero fuel, NNPC refineries’ directors, workers get N252.8bn in 3yrs’

Aminu Imam

Workers and directors at the Nigerian National Petroleum Corporation’s (NNPC’s) three refineries in the last three years were paid N252.8 billion in salaries and other emoluments. This is according to data collated from most recent 2020 audited financial statements released by the Corporation. The refineries, which are located at Port Harcourt, Kaduna, and Warri, with a total installed capacity of 445,000 barrels per day, have not been able to produce a single drop of fuel in recent years. However, in the last three years employees earned N250.3 billion in wages,…

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FG approves $1.4bn for rehabilitation of Kaduna, Warri refineries

Aminu Imam

…Approves $11.17bn rail project to link coastal cities The Federal Executive Council, (FEC), yesterday approved contracts worth $1.4 billion for the rehabilitation of the Kaduna and Warri refineries. Minister of State for Petroleum Resources, Timipre Sylva, disclosed this to State House correspondents at the end of the FEC meeting presided over by Vice-President Yemi Osinbajo at the Presidential Villa, Abuja. He said the Kaduna refinery would receive $586 million, while $ 897 million has been earmarked for the rehabilitation of the Warri refinery. Nigeria has four refineries, with two located…

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Refineries incur 13-month N104.3bn loss, refine zero oil – Report

Aminu Imam

A report from the Nigerian National Petroleum Corporation, (NNPC), has shown that a total loss of N104.3bn was recorded by Nigeria’s refineries in 13 months, even as the facilities refined no crude oil throughout the period. An analysis of the updated consolidated refinery financial performance from February 2020 to February 2021 showed that the plants maintained losses monthly. The NNPC manages Nigeria’s refineries, namely: Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company and Warri Refining and Petrochemical Company. Figures from the corporation showed that the monthly operating expenditures of…

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DPR denies revoking licenses of 32 refineries

Aminu Imam

The Department of Petroleum Resources, (DPR), has denied media reports that it revoked licenses it issued for 32 private companies to establish refineries. Media reports earlier said the federal government revoked licenses that it had issued within a period of three years. However, in a statement yesterday, DPR clarified that refinery licenses have validity periods for the investors to achieve certain milestones and would become inactive after its expiration until the company reapplies.  Picture caption: DPR.Director-CEO, Engr Sarki Auwalu “We wish to clarify that DPR did not revoke any refinery…

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Atiku backs FG’s decision to privatise refineries and other assets

Aminu Imam

Former Vice-President, Atiku Abubakar, has backed the decision by the Federal Government to privatise some of its assets. Atiku Abubakar says the decision to privatise refineries and other assets is better late than never. Atiku disclosed this in a social media statement on Sunday morning, titled: ” Privatisation of Refineries and Other Assets: Better Late Than Never”. According to him, “For decades, I have championed the privatisation of our economy and full deregulation of our oil and gas sector, amongst other sectors, for greater service delivery and efficiency”. He disclosed…

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Nigerian refineries incur N18bn operating deficit in 3 months ? Report

Aminu Imam

Despite their current inoperative state, Nigeria’s three refineries, Port Harcourt, Warri and Kaduna incurred an approximated N18billion operating deficits between August to October 2020. According to the Nigerian National Petroleum Corporation (NNPC) 2020 Monthly Financial and Operations report for August, September and October, the combined value of output by the three refineries (at Import Parity Price) for the months is put at N173million. Although there was no associated crude plus freight cost for the refineries since there was no production, the total operational expenses for the months under review is…

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Government has no business running refineries – Osinbajo

Ishaku Yohanna

The Vice President, Prof Yemi Osinbajo, has said that the federal government has no business running the refineries in the country. Osinbajo, who spoke at a virtual meeting organised for the All Progressives Congress (APC) Social Media bloggers and influencers at the ruling party’s Secretariat in Abuja on Monday, noted that experience has shown that refineries were better managed by the private sector hence the need for the government to restrict itself to providing the regulatory framework for such businesses to thrive. He said, “If the refinery is left in…

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