Oil & Energy
FG Plans Total Rehabilitation Of Refineries
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
Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor