14 Months After, FG Yet To Fix Refineries

By Michael Eboh

Fourteen months after the advent of the current administration, the three refineries belonging to the Nigerian National Petroleum Corporation, NNPC, are yet to be fixed, with the refineries producing an average of 47,553 barrels of crude oil per day (BPD) over the last one year.

This is a far cry from their combined installed capacity of 445,000 barrels of crude oil per day (BPD). Port Harcourt Refining Company, which is made up of two refineries, has a combined capacity of 210,000 barrels per day (BPD); while Kaduna Refining & Petrochemical Company Limited (KRPC) and Warri Refining & Petrochemical Company Limited (WRPC) have installed capacities of 110,000 BPD and 125,000 BPD respectively.

A document obtained from the NNPC, yesterday, revealed that the refineries are still undergoing repairs, rehabilitation and Turnaround Maintenance (TAM), a situation that ensured that local refining capacity remained below commercial threshold.

According to the document, the NNPC said refineries rehabilitation is on course to address the perennial shortage of fuel in the country, noting that this was in addition to co-locating of smaller refineries to leverage on the existing facilities and boost the nation’s refining capacity from 445,000 barrels per day to 650,000 barrels per day.

This is continuation of the trends witnessed in previous administrations, where the refineries were subjected to unending repairs and TAMs, with billions of dollars allocated on a yearly basis for such rehabilitations.

However, efforts to get the spokesperson of the NNPC, Mr. Muhammed Garba-Deen to comment on the never-ending repairs of the refineries and their current status proved abortive, as they refused to respond to text messages sent to their phones.

However, the NNPC, in its Financial and Operations Report for the Month of June 2016 released weekend, stated that about 75.26 per cent of the total Domestic Crude Oil supply for May 2016 was utilized via Direct-Sale-Direct-Purchase (DSDP). The DSDP was introduced by the NNPC to replace the crude oil for product exchange arrangement, also known as crude oil swap, and the Offshore Processing Agreement (OPA).

The NNPC allocates 445,000 barrels of crude oil daily to the refineries for local consumption, majority of which are processed outside the country, based on the arrangements in place at that point in time; while only an insignificant portion is processed by the refineries, based on their capacities at any point in time.

Also, the NNPC disclosed that total crude oil processed by the three refineries, KRPC, PHRC and WRPC, for the month of June 2016 was 225,770 metric tonne (MT) and equivalent of 1,655,345.99 barrels. This translates to an average production of 55,178 barrels daily.

Out of the total of 225,770 MT processed by the refineries in June, the NNPC stated that they produced 133,991 MT of finished Petroleum products, an equivalent of 982,422 BPD. This translates to an average daily output of 32,747 BPD of petroleum products.

The NNPC blamed the poor performance of the refineries on crude pipeline vandalism in the Niger Delta region coupled with on-going Refineries revamp; noting, however, that the three refineries continue to operate at minimal capacity.

The Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, had on different occasions stated that the refineries returned to production, while at one point, he said the country needs about $700 million to upgrade and fix the refineries.

However, the recently appointed Group Managing Director of the NNPC, Mr. Maikanti Baru, had a few days ago, stated that the corporation would collaborate with the Spanish National Oil Company, REPSOL, to improve the technical capacities of the refineries.

Baru hinted that the NNPC might consider bringing in petroleum products to the country from REPSOL to help meet domestic demand of the product, while efforts are made to fix the refineries.
According to him, NNPC as an integrated Oil and Gas Company is currently undergoing transformation which includes increasing its refining capacity.

He said, “As you know, we have challenges with our refineries and with REPSOL refining about 900,000 barrels of crude oil per day, we can collaborate on that, going forward.

“While we are fixing our refineries, we also have the opportunity to bring in more petroleum products into the country to meet our domestic needs.”

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GRAPHIC IMAGE: Imo University Final Year Student Murdered By Suspected Cultists

Ibekwe Obrien, a final year student of the Imo State University, Owerri, IMSU, has been murdered in a cold blood by yet to be identified suspected cultists.

The deceased, a final year student who was doing his clearance in school before he was gunned down at the IMSU extension front gate area of the campus.

Report has it that another student, Triple, was shot at the back gate area of the Campus. Though he sustained gun shot injuries, he was said to still be alive at the time of filing this report.

The police Public Relations Officers, PPRO, in the state, Mr Andrew Enwerem, a Deputy Superintendent of police, DSP, said that his office had been briefed on the incident.

He disclosed that the police had moved into action as investigation to unravel the circumstances was ongoing while manhunt for the killers were intensified. 

Graphic pictures below: 

82-YR-OLD BLIND MAN TO IMO GOVT: I’LL DIE IN THE RUBBLE, IF YOU DEMOLISH MY HOUSE

Dr. Chuks Osuji, an 82-year-old blind man, has threatened to die in his house, if officials of Owerri Capital Development Authority, OCDA carries out its demolition plans.

Pa Chuks Osuji's house was marked ‘remove’ by the Imo State Government, which is currently expanding some major roads in Owerri. He said: “There was no engagement for payment of compensation to me now or in the future. He said that officials of Owerri Capital Development Authority had marked his house ‘remove’.

“It is on the strength of that I want to alert the public on the injustice. Pulling down the house where I have my PR communication outfit, which employs some Imo youths and also get income to sustain my family will adversely affect me.

“As a very senior citizen in my 80s, frail and weak, pulling down this my house is tantamount to sentencing me to death.

“My choice will be to allow the building to collapse on me if that is what the authority wants. I was made to understand that yesterday, OCDA staff came and marked my little building at number 54 Mbaise Road by Amaram Street ‘remove’.

“I built this little house 22 years ago, when I had my sight and was active. The house met all statutory requirements and was approved by OCDA.

“I am now a senior citizen with full vision impairment and a national awards recipient; if this my house is pull down, where will I go?”

“I came home 36 years ago from the United States to help develop my society and have paid my dues. I deserve no raw deal after all my services to my fatherland,” he pleaded.

Dr. Osuji served as the Director-General of Imo State Mass Mobilisation Agency before becoming blind about 22 years ago.

DELTA STATE: SPECIAL ANNOUNCEMENT; GOVT. TO START PROSECUTING ROAD TRANSPORT OFFENDERS.

GOVERNMENT SPECIAL ANNOUNCEMENT:

It is hereby announced for the information of the general public particularly Deltans and motorists that the Delta State Traffic Management Authority (DESTMA) will on Thursday June 16, 2016 commence the enforcement  of regulations guiding the management of road traffic in the State.
For the avoidance of doubt, DESTMA is empowered by relevant state laws to arrest, impound and to prosecute, as the case may be, motorists that may cause obstruction to free flow of traffic, the usage of mobile phones while driving, beating of traffic lights, driving against traffic (one way driving) driving without seatbelts amongst other road traffic offences.

DESTMA officials have in the last one and half months been engaged in sensitization/enlightenment activities to educate the public without engaging in the enforcement of traffic rules. DESTMA officials during the period gave out fliers to motorists giving details on traffic offences and fines such offences attract.

Accordingly, members of the public, motorists and members of National Union of Road Transport Workers (NURTW) are by this announcement advised to maintain healthy road behaviors and to cooperate with DESTMA officials to make our roads safe and free from all traffic irregularities.

      Paul Osahor
Director of InformationFollow us on Twitter @KARIFEST1