The federal government on Tuesday said it does not believe
that modular refineries are the main solutions to Nigeria’s inability to refine
petroleum products locally, however, it said they would at best add to the
solutions.
The government in this regard said it was focusing
its efforts on making sure the country’s refineries operated by the Nigerian
National Petroleum Corporation (NNPC) in Kaduna, Warri and Port Harcourt are
fully repaired and working efficiently.
President Muhammadu Buhari, who was reportedly
represented by the Minister of State for Petroleum Resources, Mr. Timipreye
Sylva, stated this while speaking at the ongoing 24th edition of the World
Energy Congress (WEC) in Abu Dhabi, United Arab Emirates.
A statement from the Group General Manager, Public
Affairs of the NNPC, Mr. Ndu Ughamadu, quoted Sylva to have also said that the federal
government plans to sign off Final Investment Decisions (FIDs) on at least four
key projects in the oil industry within the last quarter of 2019.
He said his vision was to bequeath a vibrant
petroleum industry which would guarantee long term strategic investments and
prosperity for Nigerians.
In 2018, the Department of Petroleum Resources
(DPR) disclosed that it had so far granted licences for the establishment of
modular refineries to 25 investors.
Also, during his tenure, the immediate-past Minister
of State for Petroleum Resources, Dr. Ibe Kachikwu, was a vocal supporter of
modular refineries as part of the solutions to Nigeria’s refining challenges.
Kachikwu had at the Biennial International
Conference for Health, Safety and Environment (HSE) organised by DPR told
participants that out of about 40 licences issued for modular refineries, only
10 have shown progress by submitting their programmes and putting something on
the ground.
He added then that “by end of 2019, we are assured
that three private modular refineries would be working.”
However, at the WEC, Sylva said: “People are
talking about modular refineries; we know that modular refineries are parts of
the solution, but they can only be part of the solution and not the solutions
themselves.
“So, we are going to try to encourage modular
refineries, but before that, we are going to really focus on repairing the
existing refineries to ensure that we are back on stream very shortly.”
The minister also said: “My plan is to ensure that
during my tenure, four Final Investment Decisions (FIDs) are taken. I am sure
that within the next quarter, we should be able to conclude on some of these
FIDs to grow the industry.”
He noted that gas development was a priority for
the government to fast-track the industrialisation of the country.
According to him, “As you are aware, we are
focusing on the Ajaokuta-Kaduna-Kano (AKK) pipeline project which will address
some of our power issues and encourage the setting up of local industries and
businesses in different areas in Nigeria.”
Sylva further spoke on the need to rehabilitate the
refineries operated by the NNPC, saying it was unsustainable for Nigeria to
continue to import petroleum products.
He added that while private investment in the
refining sector would be encouraged, the government would focus more on the
repair of its existing refineries.
The minister described theft of crude oil as an
intractable issue and disclosed that the federal government was looking at
practicable solutions to address it.
The government, he said, was also looking at reducing
the cost of oil production through robust engagement with International Oil
Companies (IOCs) in the country.
He explained that Nigeria needed to speak up and
affirmatively at global energy fora as they remained some of the best platforms
where major decisions that impact the global energy landscape are taken.
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