News
$287m Was Saved From PH Refinery’s TAM – Kachikwu
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.
The Hausa Community in Rivers State has dissociated itself from media reports credited to one MaiwadaAdamu that the Arewa Community in Rivers State has appointed Alhaji Musa Saidu as the acting SarkinHausawa, PortHarcourt, following the inability of the former SarkinHausawa, Alhaji Isa Madaki to carry out his functions.
MaidawaAdamu, who is also the spokesman of the Arewa Initiative for Peaceful Co-existence, had briefed journalists on the change, but in a swift reaction, the Office of Alhaji Isa Madaki, has come out to say that the only recognised body which has the powers to appoint the SarkinHausawa, PortHarcourt is the Council of SarkinHausawa in PortHarcourt headed by Alhaji Isa Madaki.
The statement also said Alhaji Hussani Isa Madaki is the only recognisedSarkinHausawa, Port Harcourt, adding that his appointment follows the proclamation and endorsement by the council members of SarkinHausawa, Port Harcourt, Rivers State.
The statement further called on the general public and all authorities concerned to give Alhaji Hussani Isa Madaki maximum co-operation and support,as he discharges his duties as SarkinHausawa, Port Harcourt.
The Suspended Rivers State Commissioner for health, Dr Adaeze Chidinma Oreh, has described as baseless allegations in some quarters that she was responsible for the purported disruption of the Nigerian First Lady’s empowerment program in Port Harcourt.
Dr Oreh, who said this in a statement personally signed by her and a copy made available to newsmen in Port Harcourt also described the allegation as a product of the sick imagination of rumour mongers
According to Dr Oreh, “they are nothing more than a feeble and mischievous attempt to tarnish my reputation and sow discord”
In her words,”the allegations levelled against me, Dr. Adaeze Oreh, regarding the supposed disruption of the First Lady’s empowerment programme on Friday 2nd May, 2025, are entirely unfounded, completely false, and a product of the sick imagination of rumour mongers and conflict entrepreneurs.
“They are nothing more than a feeble and mischievous attempt to tarnish my reputation and sow discord.”
The suspended commissioner challenged those behind the allegation, especially the Concerned Rivers Youth Organisation to show proof of its assertion adding “It is essential to base criticisms on facts rather than speculation or puerile political agendas.
“I challenge the “Concerned Rivers Youth Organisation” (assuming such a body really exists) to provide tangible proof to support their assertions.
“It is essential to base criticisms on facts rather than speculation or puerile political agendas.
“I have neither sponsored nor will sponsor any activities aimed at embarrassing or disrupting the activities of the administration appointed by His Excellency President Bola Ahmed Tinubu GCFR to oversee the affairs of Rivers State following his declaration of a state of emergency on Tuesday, 18th March, 2025, and have rather spent the time of my suspension from office focused on other endeavours and my doctoral studies.
“I reaffirm my commitment to working tirelessly for the progress and development of Rivers State.
“Furthermore, I believe that it is crucial for all stakeholders to promote a culture of truth, integrity, and respect in public discourse.
“Unsubstantiated wild claims undermine trust and hinder constructive engagement, and this is not what the state needs at this difficult and delicate time.
“I urge everyone to focus on issues that unite us and foster a positive, solution-driven dialogue for the betterment of our State, and urge everyone to work together to build a brighter future for Rivers State, grounded in truth, transparency, and collective effort,”she said.
By: John Bibor
The Hydrocarbon Pollution Remediation Project (HYPREP) has called on key regulators, asset owners and other stakeholders to continue to support the agency toward the goal of remediating the Ogoni environment and restoring the livelihoods of the people and building structures for peace.
The Project Coordinator of HYPREP, Prof Nenibarini Zabbey, who made the call during the Project’s first quarter meeting with regulators, asset owners and stakeholders in Port Harcourt, urged the stakeholders to remain resolute in supporting HYPREP’s work.
“We particularly expect each regulatory agency and asset owner to deepen their involvement and continue to provide strategic support to the project”, he said, stressing that the quarterly meeting platform remains instrumental in providing a structural avenue for regulators, asset owners, and implementation partners to offer feedback to HYPREP on project performance and deliberate on ideas that move the project forward, as well as strengthen collaboration, deepen synergy and reinforce collective responsibility.
Zabbey disclosed that the socio-economic study of Ogoni has started, as HYPREP has contacted the International Agency for Research on Cancer of the World Health Organisation(WHO) to commence in the next quarter a three-year human health biomonitoring in Ogoniland.
He noted that work on several fronts of the cleanup project is progressing steadily, adding that as key project partners, the insights and shared experience of the regulators and asset owners have always enriched HYPREP’s operations.
He said the policy thrust of HYPREP for 2025 is clear, as the Project is intensifying efforts to complete within stated timelines, the various ongoing projects, including remediation works and mangrove restoration, potable water facilities, the Centre of Excellence for Environmental Restoration, the Ogoni Power Project, Ogoni Specialist Hospital, and Buan Cottage Hospital, among others.
Zabbey, however, announced that HYPREP would commence new set of shoreline cleanup, mangrove restoration and livelihood projects, to sustain the momentum of implementing the Ogoni cleanup, adding that the agency would also conduct detailed site characterisation of the high-risk complex sites, leading to remediation works at the sites.
He noted that HYPREP’s collaboration with Rivers State Ministries of Health, Power and Environment, and civil society organisations remains vital, stressing that the technical and administrative support of all relevant government agencies and funding partners is indispensable in helping HYPREP overcome operational bottlenecks, especially those encountered in interfacing with host communities.
He further indicated that “the people of Ogoni and the nation are looking to us with hope and expectation, and expect tangible results from the remediation initiative”, assuring the participants that the Project Coordination Office is committed to delivering positive results.
“We must, therefore, continue to work with diligence, transparency, and a renewed sense of purpose”, he declared, saying, “ the completion and commissioning of projects this year must reflect not only our technical ability but also our collective commitment to environmental sustainability and sustainable development in Ogoni.”
During the interactive session, the Project Coordinator briefed the participants on the progress made so far by HYPREP to conclude the distribution of starter packs to the 5,000 Ogoni trainees, and called on contractors who had already collected huge chunk of money for the project, to deliver without further delay.
In all, the regulators, asset owners and stakeholders commended HYPREP for the good works it is doing, and urged it to do more.
The National Oil Spill Detection and Response Agency(NOSDRA) was represented at the event by Deputy Director, Oil Field Assessment, Dr Abam Komommo Omini, while Dr Vincent Nwachukwu, Director of Medical Services, represented the Rivers State Ministry of Health.
The Rivers State Ministries of Water Resources, Power and Environment were represented by Dr Bealo Brownson; Engr K. J. Osele; and Mr James Ordu respectively, while the Society for Women and Youth Affairs (SWAYA); and the Stakeholder Democracy Network(SDN); among other civil society organisations were also at the event.
By: Donatus Ebi