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Non-performing Refineries Will Be Shut Down in December - Kachikwu
Posted by Thandiubani on Wed 14th Oct, 2015 - tori.ngGroup Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu said government will shut down refineries performing below standard.
NNPC boss, Ibe Kachikwu
Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu during his screening at the Senate on Wednesday in Abuja said that refineries performing below 65% of capacity would be shut down in December, 2015.
He made this known while responding to questions by some senators during his screening at the Senate. He revealed that the functioning refineries were operating at only 25% contrary to reports which stated otherwise.
He also stated that refineries government's effort to see that the refineries work at optimal level so as to benefit the country and its economy, stressing that anytime crude was not utilized by a refinery, the government losses.
In his words: “Performance levels are about 25 and 26 per cent; it is not enough to do 65 per cent one day and do zero per cent the next day. We have started a policy of not giving crude to any refinery that is not producing.
“Port Harcourt refinery is producing at over 60 per cent and we want to drive it to 80 by December.
“Warri Refinery has indicated that it will soon come on stream; we will begin to pump crude to Kaduna Refinery by tomorrow (Thursday) and by the next five days, we will know if they will produce above 65 per cent.
“Any refinery that does not produce up to 60 per cent is not into production, and at the end of December, we will only allow those who perform optimally. Those that do not, we will shut them down,”
Kachikwu also said for the recurring scarcity of petroleum to stop, the refineries must be at its optimal if the issue of scarcity must be tackled. He also noted that the pitiable condition of the refineries boils down to lack of maintenance.
He also gave hints that importation of petroleum products will so a thing of the past as that alone cost the nation a lot of money.
“ Kerosene is a different ball game; only NNPC imports kerosene in this country because nobody can import and make money.
“Fifty per cent of NNPC subsidies go to kerosene, so our refineries must work so we can get kerosene and gas.
“Importation is something we must quickly get out of so we must ensure that our refineries work; we must build and have a strategic reserve of at least two years,” he said.
Kachikwu added that the nation needed to privatize the downstream sector of the oil industry, saying it would spur competition and develop the sector.
He said that corporation was working on making gas available to Nigerians, adding that plans were on to produce cylinders and make them available to all Nigerian by 2016 ‘’and create gas points closer to the people’’
He believes that if confirmed as Minister of the Federal Republic, he stands on a better ground to effect corrective changes in the industry.
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