Business
‘Rudimentary Refining Of Crude Oil, Waste To The Economy’
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), says that encouraging or legalising unlicensed local refining of crude oil would not be beneficial to the country.
The PENGASSAN’s President, Mr Babatunde Ogun, made the remark in an interview with newsmen in Lagos yesterday.
The PENGASSAN chief said that unconventional technologies in refining crude oil would cause the country to lose substantial revenue.
“The local production of crude oil can only produce fuel (petrol). It cannot produce kerosene, diesel or black oil, for the production of other ointments. “It also leads to environmental degradation which could cause health disasters, explosions and vehicle breakdown,’’ Ogun said.
The PENGASSAN official said that encouraging local refining of crude oil, by setting regulations that would guide the activities of local mushroom crude oil refiners, would not work.
Ogun noted that the Federal Government gave oil operators approval in principal to lift crude, which was why some of them could not start their refineries.
He, however, urged the government to support the establishment of small refineries, as done in other parts of the world, saying there was need for government to relax the business climate.
Ogun also canvassed the generation and supply of adequate power, to enable the refineries to work in optimal capacity.
He, however, commended the government for clamping down on illegal refiners of crude oil in the Niger Delta communities, describing such act as economic sabotage.
The PENGASSAN president advised the government to pass the Petroleum Industry Bill (BIP), to encourage investors, especially in the downstream sector. Fatacities
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