Oil & Energy
Review Approach On Illegal Refineries, BoPP Tells FG
Federal Government has been advised to review its approach on the issue of illegal refineries in the oil-rich Niger Delta for economic development of the oil sector and economy of the nation.
The Chairman, Rivers State Bureau of Public Procurement, Prof Okey Onuchukwu made the call at the 32nd Annual General Meeting (AGM) of the Rivers/Bayelsa States branch of the Manufacturers Association of Nigeria (MAN) held Thursday in Port Harcourt.
Onuchuwkwu said that the boys involved in illegal refinering of crude oil in the Creeks should not be totally thrown away.
While delivering a paper tilted, “Stagflation and Economic Re-alignment in Nigeria”, he said the high unemployment and inflation in Nigeria demands a shift from some policies of the government.
The head of Economics Department at the University of Port Harcourt said closing down the activities of those refining the crude in the creeks should not be approached with total rejection but rather government should find a strategy of co-ordinating them with the aim of upgrading their standard.
He explained that if they are trained such that the standard of their operation is upgraded, it would help boost employment and increase forex.
“We don’t need the big and gigantic refineries. Let us look at what the boys are doing, upgrade and to add value to it”, he said.
He remarked that huge importation of Petroleum Products and inability of public refineries to produce up to expected capacity was working against the economy and should be reviewed to boost local production.
In his own submission, Adviser to Governor Nyesom Wike of Rivers State on Investment, Mr Isaac Okemini, said the Federal Government should take steps towards ensuring that the International Oil Companies (IOCs) are encouraged to operate instead of scaring them off with our policies.
“Oil is the main stay of this country and will remain so for a long time. You must call back the IOCs; whatever made them to sell their investments in Nigeria must be reversed”, he said.
The Adviser regretted that the Petroleum Industry Bill (PIB) that could guarantee meaningful business operations of the IOCs had been languishing in the National Assembly for years and called on both National Assembly and federal government to sort out whatever differences amongst them that led to such a situation as to pass the Bill.
The Federal Government has offered explanation with regard to recent changes to fuel sulphur content standards for diesel.
The Government said the change was part of a regional harmonisation effort, not a relaxation of regulations for local refineries.
The Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, told newsmen that the move was only adhering to a 2020 decision by the Economic Community of West African States (ECOWAS) which mandated a gradual shift to cleaner fuels across the region.
Ahmed said the new limits comply with the decision by ECOWAS that mandated stricter fuel specifications, with enforcement starting in January 2021 for non-ECOWAS imports and January 2025 for ECOWAS refineries.
“We are merely implementing the ECOWAS decision adopted in 2020. So, a local refinery with a 650 ppm sulphur in its product is permissible and safe under the ECOWAS rule until January next year where a uniform standard would apply to both the locally refined and imported products outside West Africa”, Ahmed said.
He said importers were notified of the progressive reduction in allowable sulphur content, reaching 200 ppm this month from 300 ppm in February, well before the giant Dangote refinery began supplying diesel.
Recall that an S&P Global report, last week, noted a significant shift in the West African fuel market after Nigeria altered its maximum diesel sulphur content from 200 parts per million (ppm) to around 650 ppm, sparking concerns it might be lowering its standards to accommodate domestically produced diesel which exceeds the 200 ppm cap.
High sulphur content in fuels can damage engines and contribute to air pollution. Nevertheless, the ECOWAS rule currently allows locally produced fuel to have a higher sulphur content until January 2025.
At that point, a uniform standard of below 5 ppm will apply to both domestic refining and imports from outside West Africa.
Importers were previously permitted to bring in diesel with a sulphur content between 1,500 ppm and 3,000 ppm.
It would be noted that the shift to cleaner fuels aligns with global environmental efforts and ensures a level playing field for regional refiners.
The Port Harcourt Electricity Distribution (PHED) plc says it has commenced implementation of the April 2024 Supplementary Order to the MYTO in its franchise area while assuring customers of improved service delivery.
The Supplementary order, which took effect on April 3, 2024, emphasizes provisions of the MYTO applicable to customers on the Band A segment taking into consideration other favorable obligations by the service provider to Band A customers.
The Head, Corporate Communications of the company, Olubukola Ilvebare, revealed that under the new tariff regime, customers on Band A Feeders who typically receive a minimum supply of power for 20hours per day, would now be obliged to pay N225/kwh.
“According to the Order, this new tariff is modeled to cushion the effects of recent shifts in key economic indices such as inflation rates, foreign exchange rates, gas prices, as well as enable improved delivery of other responsibilities across the value chain which impact operational efficiencies and ability to reliably supply power to esteemed customers.
“PHED assures Band A customers of full compliance with the objectives of the new tariff order”, he stated.
Ilvebare also said the management team was committed to delivering of optimal and quality services in this cost reflective dispensation.
The PHED further informed its esteemed customers on the other service Bands of B, C D & E, that their tariff remains unchanged, adding that the recently implemented supplementary order was only APPLICABLE to customers on Band A Feeders.
The Nigerian National Petroleum Company Ltd (NNPCL) has announced the signing of an agreement with African Refinery for a share subscription agreement with Port-Harcourt Refinery.
The agreement would see the co-location of a 100,000bpd refinery within the Port-Harcourt Refinery complex.
This was disclosed in a press statement on the company’s official X handle detailing the nitty-gritty of the deal.
According to the NNPCL, the new refinery, when operational, would produce PMS, AGO, ATK, LPG for both the local and international markets.
It stated, “NNPC Limited’s moves to boost local refining capacity witnessed a boost today with the signing of share subscription agreement between NNPC Limited and African Refinery Port Harcourt Limited for the co-location of a 100,000bpd capacity refinery within the PHRC complex.
“The signing of the agreement is a significant step towards setting in motion the process of building a new refinery which, when fully operational, will supply PMS, AGO, ATK, LPG, and other petroleum products to the local and international markets and provide employment opportunities for Nigerians.
By: Lady Godknows Ogbulu
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