Oil & Energy

FG Plans Total Rehabilitation Of Refineries

Published

13 years ago

September 3, 2012

In a bid to bring back the nation’s refineries close to what
it was at inception, the federal government has given full support to the total rehabilitation of the
plants by the original refinery builders (ORBs).

The Group Executive Director, Refining and Petrochemicals,
Nigeria National Petroleum Corporation (NNPC), Engr Tony Ogbuigwe made the
disclosure while presenting a lead paper titled “Sustainable Refinery
Turnaround Maintenance” at the just concluded first International Conference on
Petroleum Refining and Petrochemicals in Port Harcourt last week.

Engr. Ogbuigwe explained that under best practices index, a
refinery was expected to run for 24 hours a week for two years and thereafter
undergo a turnaround maintenance.

He noted that “the industry best practice interval for
refineries turnaround is between 2 to 4 years depending on the complexities of
the plant. Best Practice index for capacity utilization is above 90 per cent on
continuous basis. You will agree with me that the current state of our
refineries leave much to be desired.”

He added that turnaround maintenance in the strict sense of
the word would not solve the current problems of the nation’s refineries as the
last turnaround maintenance of the
Kaduna Refinery was 2008, Warri 2004 and Port Harcourt 2000.

This, he pointed out, has informed government’s decision to
carry out total rehabilitation which will be done by the original builders of
these refineries, adding that the Bureau of Public Procurement waiver has been
obtained for these ORBs.

He said that the companies include, “Tecnimont in
collaboration with Japan Gasoline Corporation (JGC) for Port Harcourt Refining
Company Limited (PHRC), Saipem for Warri Refinery and Petrochemicals Company
(WRPC) Limited, and Chiyoda in collaboration with Saipem for Kaduna Refinery
and Petrochemical (KRPC) Limited.”

On the Port Harcourt Refinery Company, he said technical and
commercial proposal has been submitted
by August 31, 2012 and evaluation followed while award takes place in October
2012.

According to him, TAM and Rehabilitation contractors move to
site in October 2011 to commence detailed planning and mobilisation of manpower
and heavy equipment which would continue for about three to four months.

In February 2013, he continued, the plant will be shut down
and handed over to contractor for TAM which will take 45 days and back to
operation by April 2013, as further rehabilitation project would follow
immediately.

He said, “a new active power supply via Gas Turbine by an
Independent Power Provider (IPP) has been concluded and a Power Purchase
Agreement signed on 6th August 2012. Supply will commence by March 2013 in time
to re-stream the Plant after TAM”.

He pointed out that when these efforts would have been
concluded for the three refineries, it would enable them run at 90 per cent and
daily production of Petroleum products would improve to 20.3million, 9.24
million and 15.36 million litres of premium Motor Spirit (Petrol) Kerosene and
Automotive Gas Oil (AGO), respectively.

Vivian-Peace Nwinaene

Oil & Energy

NERC, OYSERC Partner To Strengthen Regulation

Published

23 hours ago

February 23, 2026

The Tide

THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.

It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).

The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.

Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.

He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.

Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.

Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.

“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.

He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.

“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.

Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

Published

23 hours ago

February 23, 2026

The Tide

The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.

NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.

In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.

“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.

Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.

She feared the longstanding conflict could result in the eventual collapse of the country’s power.

According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.

Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance ……… Seeks PIA Review

Published

23 hours ago

February 23, 2026

The Tide

The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).

President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.

Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.

The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.

In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.

He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.

Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.

He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.

Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.

“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.

He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.

“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..

According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.

“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.

Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.

“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.

Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.

“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.

According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”