Some stakeholders in the oil and gas sector have urged the federal government to give priority attention to the planned resuscitation of the nation’s ailing refineries for full production in 2022.
The stakeholders expressed their news in separate interviews with The Tide recently, wile reacting to the announcement by the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mallam Mele Kyari, that the Port Harcourt and Kaduna refineries would be fully operational in 2022.
Former chairman of the National union of Petroleum and Natural Gas Workers (NUPENG), Port Harcourt Refinery branch, Comrade Alex Agworwor said the government should fulfil the promise and not politcise the state of the refineries.
Comrade Agworwor said the poor operational standards of the existing refineries in the country had made Nigeria to depend on the importation of refined products.
“Nigeria is estimated to hold approximately 37 billion barrels of proven oil reserve which is the second biggest in Africa. The country, however, imports majority of its domestic refined products due to lack of domestic refining capacity, this doesn’t create a good and promising picture of the country as a major oil producing nation.
The federal government through its relevant agencies should ensure that our refineries are functional, while the building of new ones should be considered, “ he said.
In his own views, the Chairman of the Port Harcourt branch of the Independent Petroleum Marketers Association of Nigeria, (IPMAN), Comrade Emmanuel Inimgba, also called on the federal government to speed up the revamping of the existing refineries in the country and build new ones to enhance the capacity utilisation and also address the deficits recorded as a result of the poor state of the refineries.
“Despite Nigeria’s huge potentials in the oil and gas sector, the country still depends heavily on the importation of refined products for domestic consumption. The federal government must make concrete efforts to boost the capacity of our refineries to meet up the needs of Nigerians and cut fuel importation. This will also help us the independent marketers to have a liverage to perform effectively,” he said.
NNPC, UTM Seal Deal On First Indigenous Floating LNG Project
Nigerian National Petroleum Corporation (NNPC) and UTM Offshore have signed a Heads of Terms (HoT) agreement for the construction of the nation’s first indigenous floating LNG project.
The agreement, described as a major step towards bolstering Nigeria’s energy security and promoting the utilisation of its abundant gas resources, was signed on July 20, in Abuja.
It covers the 1.5 million tonnes per annum (mtpa) floating LNG project which is seen as a “must-do” initiative for Nigeria.
Signing the agreement, NNPC’s Group Chief Executive Officer (GCEO), Mele Kyari, expressed the company’s readiness to secure gas feedstock towards the project.
Group Managing Director UTM Offshore Ltd., Julius Rone, who described the deal as a milestone achievement, said it showcased the capability of indigenous companies to collaborate with world-class energy conglomerates to drive growth in Nigeria’s energy sector.
Rome further explained that apart from significantly cutting down on gas flaring and supporting the country’s commitment to reducing carbon emissions, the project would also create over 7,000 job opportunities, contributing to the nation’s economic growth and development.
For this project, UTM Offshore awarded the contract for the conceptual design service to JGC Corporation back in 2021.
It would be recalled that in late 2022, the consortium of JGC and Technip Energies secured the front-end engineering and design (FEED) contract.
The project was also supported by $5 billion from the African Export-Import Bank (Afreximbank).
Earlier this year, however, NNPC signed a Memorandum of Understanding (MoU) with Norwegian Golar LNG, an owner and operator of marine LNG infrastructure, to build a floating LNG plant in Nigeria.
‘NNPC Spent N15b To Reconstruct Lagos-Badagry Expressway’
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has disbursed N15 billion for the reconstruction of the Lagos Badagry Expressway under the Federal Government Road Infrastructure Tax Credit (RITC) Scheme.
The N15 billion represents a 100 per cent payment of the funding of the Lagos-Badagry Road rehabilitation under the tax credit funding of the NNPC Ltd.
Group Chief Executive, NNPC, Mr Mele Kyari, made this known when he led NNPC’s management team with some top government officials to inspect the ongoing rehabilitation and expansion of Lagos-Badagry Expressway (Agbara Junction-Nigeria/Benin Border).
The road under rehabilitation is being funded by the NNPC Ltd. under the Federal Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
The execution of the scheme is being carried out in collaboration with the Federal Ministry of Works and Housing as the supervisor and Federal Inland Revenue Service (FIRS) for NNPC’s tax obligations deductions.
This is in response to address the plight faced by petroleum products marketers in transportation which affects nationwide distribution.
Kyari said the fund disbursed was part of the N621.24 billion earmarked for the reconstruction of 21 roads nationwide under the scheme.
He expressed satisfaction over the stage of the road development.
“We are covering 1,804.6mkm across the country and taking another set of over a trillion naira investment on infrastructure in Nigeria, believing that with the tax credit system which Mr President has put in place, very soon there will be massive change.
“NNPC as the enabler will consider from its cash flow and fund whatever FIRS and Ministry of works approve for the company”, he said.
The Minister of Works and Housing, Mr Babatunde Fashola, represented by the Director, Highways, Roads and Rehabilitation of the Ministry, Mr Folorunsho Esan, said the intervention of the NNPC sped up the reconstruction of the expressway.
Esan said the project was 40 per cent completed.
“In the next 12 months we should be able to deliver this project because the drainages are in place, just for earth works and pavement works, it cannot take us more than 12 months,” he said.
Speaking on the gridlock being caused by the Lagos-Ibadan Expressway project, he said the contractor would clear all impediments and move out of site by December 15 to make the highway free for Yuletide.
Oil Marketers Urge Buhari To Crash Diesel Price
Petroleum marketers under the platform of Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) rose from their 2nd National Executive Council (NEC) meeting last week, within a plea to President Muhammadu Buhari to direct the Central Bank of Nigeria (CBN) to make dollars available at official rate to oil marketers.
This, they said, will enable them import diesel, end petrol scarcity, and ultimately save the Nigerian economy from sinking, saying that dollar support should be available till Dangote Refinery comes on stream later in the year.
The association, among others, urged the National Assembly to immediately enact a Bill for the establishment of Energy Bank for easy transaction in petroleum products in the sector.
National President of the Association, Mr Benneth Korie, who briefed the media after the NEC meeting in Abuja, noted that the bulk of the operational challenge peppering marketers and depot owners spring from expensive diesel which hovers around N850/litre.
While thanking President Muhammadu Buhari for approving a higher bridging cost payment to transporters, Korie said the operators’ challenges were far from over as oil marketers and depot owners spend about N20 million weekly on diesel to power their operations, thus eroding their profits.
The association urges the National Assembly to review the policy of taxation as it affects petroleum products supply and distribution chain.
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