Connect with us

News

$287m Was Saved From PH Refinery’s TAM – Kachikwu

Published

10 years ago

on

The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Emmanuel Ibe Kachikwu, has said Nigeria has saved over $287 million from the turnaround maintenance (TAM) of the Port Harcourt Refinery, Eleme.
Kachikwu made the disclosure shortly after an inspection tour of the refinery..
He said foreign companies had requested to carry out the TAM at a cost of $297 million but the NNPC used its manpower and local oil servicing firms to achieve the maintenance at the cost of less than $10 million.
He said: “The asking price by the original refinery builder was $297 million. The disaster with that was that they were not professionals and they were not ready to give us guarantees. What we have done so far is under $10 million.
“Obviously, had we consistently done this overtime, we would not have the sort of nightmare that we have had today. Whatever it takes, we are going to raise money; we are going to raise some vessels to give them what they need to run this place and run it efficiently.”
He said he was not ready to apportion blames for the failure to carry out TAM on the refinery for 25 years, but stressed that he was looking forward to getting solution for the nation’s oil industry.
He expressed the desire of the federal government to ensure that the nation’s refineries operate at their optimum capacity, insisting that the nation would continue to import refined products as the refineries cannot meet local demand even if they work at their installed capacities.
“We said that we like to tie the delivery of crude to the refinery to make sure the FCC (Fluid Catalytic Cracking) Unit work, otherwise, we will be wasting very vital resource. Kaduna like you know came up and we had a little bit of hiccups yesterday, but it is still being worked on and it should come back on stream quickly. Port Harcourt is getting ready to get their FCC powered.
“We’ve got to realise that these are refineries that have not been given serious maintenance for over 15 to 18 years and what I saw today was quite amazing with a lot of energy from people who are locally based here doing their best to find an alternative solution.
“Otherwise, there would have been a very long gestation period in ordering parts for these refineries. What is important is that people are motivated and energised; they are focussed. They understand my timelines that we need to get these things to work; we need to support them whichever way we can.
“I am impressed with the energy and the effort that is going on there; I am impressed with the momentum. I think that if we continue on this part, we should see the refineries working near full blast very soon. Until then, we are going to manage our resources, how we deliver crude and what we need to do in terms of reducing contractual times to enable them get the parts they need to get the refineries working. I am happy with what I saw today; we still have some ways to go, but we are on the right part,” he said.
On the timeline for the refineries to go full blast, Kachikwu said: “From what I see, within the next 60 days, we should at least get two out of the three FCCs working. There are still some components that need to be tinkered with here and there and there would be stoppages while you are doing that? Certainly.
“But in a full capacity, they will be doing something like 16 million to 20 million litres of PMS. Our national consumption is within the range of between 30 million and 40 million litres; still to be determined. In their 40 per cent to 50 per cent capacity, we are probably looking at half of that. So, we will always continue to import some element of that.
“If we continue on this chain and if I can get them every month to have incremental values; we get at six, then we get at eight, then we get at 10, and set ourselves a 90-day spectrum to see where we are, that will be progress. Anything that I produce locally and don’t have to import is a plus.”
He ruled out any plan by the federal government to sell off the refineries, stating that instead, government might consider joint ventures.
“There will never be a plan to sell the refineries. There might be a plan to have joint venture investors, but that is going to depend on how the refineries are going to work on their own. Obviously, we are going to be looking at all options to make the refineries 100 per cent efficient,” he said.
In terms of crude supply, he said: “You know we have cancelled the crude supply by vessel contracts.
We are going to use some stop-gap measures to use our own internal supplies from now till when the new contracts are looked at.
“The intent is to have the pipelines work. I am very focused on the pipelines; it is no longer good enough excuse that people are sabotaging the pipelines. We have got to deal with those sabotages and we are going to go extremely tough on this.
“If we can make the pipelines work, we get crude supply and get higher volumes easier. We are on the verge of bringing in army corps of engineers to help with pipeline protection. We should be looking at both aerial surveys by helicopters, surveys by the military and obviously naval surveys as long as we can.
“But we have to also engage the communities because at the end of the day, how all these we have planned are going to be functional will depend on how well we relate with the communities. Should the pipelines work, there is no alternative to it.”
On Warri Refinery that is shut down, Kachikwu said: “When you have a 30-year-old car, you are going to continue to shut it and repair and make it work. It is shut down, we are going to repair it and it is going to come back on stream. At some point, investments would be required to put in a sort of change processes.
“What our engineers are doing locally is fabricating as much as they can the replacement tools. We are working on it and the encouraging thing is not whether it is shut down; it is whether our guys are ready to get it up.
“On whether we can meet all our local production needs, probably not until we begin to put new refineries in place in addition to what we have. But if I can get them to near 100 per cent capacity for each of them, I would have taken away 50 per cent of the importation dynamics in this country. And that is what the focus should be.
“So, I am as frustrated as Nigerians are in terms of up, down, get up and shut down and all that stuff. This is the price you pay when you do not invest in turnarounds for so long a time.”
He however said he would not allow scarcity of petroleum products in the country.
“I will import as much as I need. I will try and refine as much as I can and I will keep looking at those comparative dynamics and see where I land. I certainly would hope that someday in my tenure, we would stop importing. But it is not going to happen on a 100 per cent basis unless you build new refineries,” he said.
Kachikwu further disclosed his intention to break into three the corporation’s subsidiary, the Pipelines and Product Marketing Company (PPMC), in continuation of the ongoing restructuring exercise.
NNPC in a statement from its Group General Manager Public Affairs, Ohi Alegbe, in Abuja stated that the move is part of a bid to ensure lean, efficient and profitable operations at the corporation.
The statement quoted Kachikwu to have made this disclosure during his official tour of the Okrika Jetty and the Port Harcourt Refining Company Limited (PHRC).
Kachikwu, the statement explained, noted that the PPMC would be split into a pipelines company that would focus primarily on the maintenance of the over 5,000 kilometres pipelines of the corporation, a storage company that would maintain all the over 23 depots and a products marketing company that would market and sell petroleum products.
He said that the move would ensure that the right set of skills are rightly positioned and the number of leakages in terms of pipelines break and products loss are reduced to the barest minimum.

Related Topics:
Continue Reading

News

Ibas Inaugurates RSIEC, Service Commissions, Healthcare Board In Rivers  …Charges Appointees To Embrace Principles Of Service 

Published

2 days ago

on

July 18, 2025

By

The Administrator of Rivers State, Vice Admiral (Rtd) Ibok-Ete Ibas, has charged newly appointed Board members to uphold the highest standards of discipline, competence, integrity, and unwavering dedication in their service to the State.

 

He emphasized that such commitment is critical to stabilizing governance, restoring democratic institutions, and advancing the principles of good governance in the State.

 

 

 

This was contained in a statement by the Administrator’s Senior Special Adviser on Media, Hector Igbikiowubo on Monday.

 

 

 

Ibas issued the charge on Monday while inaugurating the reconstituted Rivers State Independent Electoral Commission (RSIEC), Rivers State Civil Service Commission, Rivers State Local Government Service Commission, and the Rivers State Primary Health Care Management Board at Government House, Port Harcourt.

 

 

 

The Administrator urged the new appointees to embrace their roles with diligence, patriotism, and a commitment to transforming Rivers State through excellent service.

 

 

 

Addressing the Chairman and members of RSIEC, Ibas underscored their pivotal role in ensuring credible local government elections that reflect the will of the people.

 

 

 

“Your task is clear but demanding: to conduct free, fair, transparent, and credible elections at the grassroots level. You must resist bias, favoritism, and external interference while restoring public confidence in the electoral process,” he stated.

 

 

 

“The independence of your actions is crucial to sustaining peace, stability, and grassroots governance. I urge you to act with fairness, impartiality, and professionalism—even in the face of difficult choices,” Ibas added.

 

 

 

The Sole Administrator also charged the Rivers State Civil Service Commission on the need to eliminate mediocrity and foster a culture of excellence through merit-based recruitment, training, and promotions.

 

 

 

“The civil service must transition from favoritism to competence, integrity, and accountability. Your commission will lead reforms, including digital transformation and standardized practices across ministries, departments, and agencies,” he said.

 

 

 

He disclosed that extensive training programmes are underway, with a committee set up to overhaul the public service framework for greater efficiency.

 

 

 

Meanwhile, Ibas urged the Rivers State Local Government Service Commission to ensure professionalism and discipline in local government administration.

 

 

 

“As the closest tier of government to the people, you must drive reforms that insulate the system from politics and mediocrity. Your mandate includes merit-based recruitment, training, and enforcing standards for effective service delivery,” he stated.

 

 

 

In the same vein, the Administrator charged the Rivers State Primary Health Care Management Board with revitalizing healthcare delivery across the state’s 23 local government areas.

 

 

 

“Primary healthcare is the foundation of a sustainable health system. Your board must ensure facilities are adequately staffed, equipped, and operational focusing on maternal health, immunization, malaria control, and community health services,” he said.

 

 

 

He emphasized data-driven operations, incentives for rural health workers, and restoring the referral system to improve healthcare access.

 

 

 

He also assured the Board of sustained government support, including funding, for the effective discharge of their mandates but warned that board members would be held accountable for their performance.

 

 

 

The newly inaugurated members include: RSIEC: Dr. Michael Ekpai Odey (Chairman) with Prof. Arthur Nwafor, Prof. Joyce Akaninwor, and others as members.

 

 

 

Civil Service Commission: Dr. Livinus Bariki (Chairman), Amb. Lot Egopija, Mrs. Maeve Bestman, and others.

 

 

 

Local Govt. Service Commission: Mr. Isreal Amadi (Chairman), Rear Adm. Emmanuel Ofik (Rtd), Dr. Tonye Pepple, and others.

 

 

 

Primary Health Care Board: Dr. Dawari George (Chairman), Dr. Chituru Adiele (Executive Director), Prof. Kaladada Korubo, and representatives from key ministries.

 

 

 

 

 

 

 

 

 

 

Continue Reading

News

Rivers PDP Debunks Sale Of LGA Election Forms

Published

2 days ago

on

July 18, 2025

By

The Publicity Secretary of the Peoples Democratic Party (PDP) in Rivers State, Dr. Kenneth Yowika, has debunked claims that the party has commenced sale of forms for chairmanship and councillorship elections across the 23 local government areas of the state.

 

Yowika made the rebuttal in a statement made available to newsmen on Wednesday, describing the publication on the social media as baseless and untrue.

 

He urged members of the PDP to disregard the claim, saying that official communication regarding the sale of forms would be disclosed through the appropriate channels.

 

“With reference to information trending on social media, it has been falsely claimed that the sale of forms for Chairmanship and Councillorship elections in the 23 Local Government Areas (LGAs) of Rivers State will begin soon.

 

“However, the party has firmly denied these rumours, stating that they are baseless and untrue.

 

“The party has its own established methods of reaching out to its numerous supporters.

 

“The People’s Democratic Party, a law-abiding organisation, will patiently await the release of guidelines from the recently inaugurated Rivers State Independent Electoral Commission (RSIEC) before considering any sale of election forms.

 

“The PDP is urging its members to remain calm as official communication regarding the sale of forms will be disclosed through appropriate channels,” the statement read.

 

Enoch Epelle

 

 

 

 

 

 

 

 

Continue Reading

News

South-South contributes N34trn to Nigeria’s economy in 2024 – Institute

Published

2 days ago

on

July 18, 2025

By

Prof. Pius Olanrewaju, President of the Chartered Institute of Bankers of Nigeria (CIBN), has stated that the South-South region contributes N34 trillion to country’s economy in 2024.

He made the remark at the South-South Zonal Banking and Finance Conference in Calabar, yesterday.

He spoke on the theme, ‘’Building An Inclusive South-South: Economic Diversification as a Catalyst For Development.’’

Olanrewaju, who quoted the data from the Cable Data Index, said the feat was more than 21 per cent of Nigeria’s real Gross Domestic Product (GDP).

The president described the growth as ‘’ impressive,’’ saying that it was not driven by oil alone but significant expansions in trade, services, and the creative industries.

According to him, to fully harness this potential, coordinated financial, technological, and policy support is essential.

“As we work to reposition the South-South for broad-based prosperity, the financial system must play a central role, not merely as a source of capital, but as a catalyst for innovation, ideas incubation, and inclusive economic growth.

“This conference, therefore, provides a strategic opportunity for stakeholders to reimagine the South-South economy, not merely as a resource belt, but as a region of diverse capabilities and resilient enterprises.”

Olanrewaju added that Nigeria must move beyond old models and chart a new course for the development of the South-South region, where financial institutions and stakeholder collaborate to diversify the economy for shared prosperity.

He,  however, commended Gov. Bassey Otu for his pledge of land for CIBN Secretariat in Cross River and being the first sitting governor to willingly undergo and complete the Chartered Bankers Programme.

On his part, Gov. Otu said that the conference discussion on the economic diversification in South-South region was timely against the backdrop of global trade and economic volatility that was affecting the nation’s economy.

Represented by his deputy, Mr Peter Odey, Otu said the South-South region must now act with urgency to diversify its economy while leveraging its shared natural endowment in agriculture and extractive resources.

“This conference must help develop tailored financial solutions that reflect the unique strengths and realities of states like Cross River in the south-south.

“Diversification should be evidence-based and must be backed not just by financial advice but project focused financing and real investment support,” he noted.

He said that Cross River had taken the bold step to invest in its agricultural sector by launching an Agro processing hub.

Otu further said that the state had invested in aviation by acquiring more aircrafts for Cally Air, construction of the Bakassi Deep Seaport and injecting N18 billion in its tourism sector.

Similarly, Mr Tolefe Jibunoh, Cross River Branch Controller of the Central Bank of Nigeria (CBN) said that the region was blessed with natural resources, cultural diversities and immense human potentials.

Jibunoh, who was represented by Mr Segun Shittu, Head, Currency Control Office, CBN, Calabar, noted that strategic diversification could unlock unprecedented opportunities for growth in the region.

He added that the CBN remained steadfast to maintain monetary possibilities and promote a sound financial system as a catalyst for sustainable economic development for the benefit of all.

Continue Reading

Trending