The Minister of State for Petroleum Resources and
Group Managing Director, Nigerian National Petroleum Corporation, Dr. Ibe
Kachikwu, has announced that the Port Harcourt Refining Company and the Warri
Refining and Petrochemical Company are now producing a combined volume of seven
million litres of petrol daily.
According to him, the PHRC now produces five
million litres of Premium Motor Spirit, popularly known as petrol, while the
WRPC produces two million litres of the product daily.
Kachikwu, in a statement from the NNPC on Sunday, said this while reopening the
Bonny-Port Harcourt crude pipeline.
The minister said in the statement that the
government was doing all it could to clear petrol queues, as he noted that the
Kaduna Refining and Petrochemical Company was also scheduled to start
production any moment from now.
Kachikwu said the coming on stream of the three
refineries would go a long way in ensuring sufficient supply and distribution
of petrol across the country.
The minister said the NNPC had been able to
recover the Escravos to Warri and Bonny to Port Harcourt crude supply
pipelines, stressing that they were critical to the downstream oil sector.
“Port Harcourt is back in production; Warri is
back in production; Kaduna, as of today, is receiving crude and will soon be
back in production. Lagos is easing off now from fuel scarcity and Abuja is
doing the same thing; and once Kaduna begins production, the North will see a
lot of improvement,” Kachikwu stated.
The minister said a commercial governance model
system had been introduced into the management of the refineries to enable them
to compete favourably in the hydrocarbon value chain.
He explained, “What we have done is to find a
very creative way of bringing investors who will come in, work with our team
here who have the skills, reactivate and upgrade facilities in these
refineries.
“The investors will also help us to provide
technical support and they will be paid through the flow out of refined
products over a period of time, which is why we have also changed the refining
model such that the refineries pay for their crude, so it goes into the
Federation Account.”
Kachikwu added that the refineries would sell
their products to both the Nigerian Petroleum Marketing Company and the
marketers.
He insisted that the government would not sell
the refineries contrary to claims in some quarters.
“We are not inviting foreign partners to take
over the refineries; we do not have the funds. Even now that they are working,
they are probably working at about 60 per cent or below capacity; so, you need
to upgrade these refineries and get them to a level where they will operate at
90 per cent capacity or more,” the minister said.
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