jpphilips:



Where in this article does it say that a refinery produces oil? even your rebuttal didn't say so, show me, I want to see it!!

bushdoc9919:


Well, ultimately, my palaver with subsidy is we are not producing enough to meet domestic demand. We produce 10 million litres per day for a demand of 35 million litres per day....which means importing 25 million bpd......and then subsidize the imported fuel at the pump!(Talk about throwing away money.)

Anyway, in my opinion, we need to get off oil....focus on industrial development...which is where the subsidy cash should be (ideally) spent.

bushdoc9919:


Refineries, basically refine oil into varied products....including PMS, Kerosene, etc.

You are just sad that I refuted your theory that a refinery cannot produce up to 40000bpd.

Anyways....Nigeria must get off oil. That is the ultimate purpose of my removing oil subsidies....to use the cash to spend on industrial support infrastructure.

But you Nigerians...govt, opposition, populace, etc....think the oil money will be there forever. It won't. We better start following China, Germany and Japan....and invest in industries...so that ultimately our GDP will grow....and then we would have the cash to subsidize whatever we want.

Not now, under this Dutch diseased economy.

jpphilips:


If you dont understand how something works, you ask people who do and they will explain it, spamming the whole thread with articles written by Kai-kai journalists is in nobody's interest.
A journalist or analyst whose IQ processed that refinery produces oil, does not behoove readership from a busy doctor like you, Find something else to while away time, definitely not that article. just a friendly advise.

bushdoc9919:




I leave you, and every Nigerian with this quote....try not to be offended

Ten years from now, twenty years from now, you will see: oil will bring us ruin… Oil is the D/e..v..il's excrement

Ultimately I want the subsidy off because we are too dependent on oil. It is time we grew out of liquid food and went to solids.

But Nigerians too dey like Nutrend....

Oil is a curse.

bushdoc9919:


The reason why we are corrupt is because we are an oil dependent society. Oil societies transform the government into oil money sharers.

That is why I support the removal of fuel subsidy because if the money can be channeled into industries et al.....we would get off oil and become an industrial society....and in an industrial society it is in the interest of the govt to make everything work (Keeps tax revenues high).

playboy19:


Dude... if you like quote the whole world, i still put it to you that you know nothing about this topic being discussed. There is nothing like a fixed global petroleum price. You only have global crude oil price. All countries set their petroleum prices accordingly. I will tell you this as i have stated it previously, 'There is nothing like subsidy in the first place. It is simply a scam'. I am in the industry and you can tell your finance minister or the petroleum minister to call me out on this. With or without government subsidy funds, you can import your petroleum products into this country and still turn profit.

At the moment, only 7 companies are granted allocations to import oil into the country on behalf of the FG and these are the ones who will share this N1 Trillion. Just 7 companies sharing N1 Trillion subsidy funds. All other companies are going to import and sell their own oil without receiving subsidy. Yet they're going to make massive profits. They were making massive profits before the increment from N65 - N95, so you can imagine the profit now, and this is them, without receiving subsidy funds. Call your connects in the oil industry (downstream) and verify this.

Moreover, all the oil imported into the country by these 7 oil companies are going to be bought from some 3 companies (Glencore, Trafigura and Vitol S.A) solely anointed by the FG. So stop feeding Nigerians with your simple and unintelligent logic or rather, some random facts from equally ill-informed journalists and get informed about what you pay for. Fuel subsidy has always been a scam, and a big scam it'll continue to be, until we all get informed and stand up to the government trying to lift it's 'fraudulent obligations' on the populace.

I wouldn't have wasted my time responding to Bushdoc if I had seen this post earlier, I like the part in bold, he read nonsense from a confused journalist and formed an opinion with it, it is a huge shame.
I have no doubt you have an idea how it works out there (downstream), so on the down stream part you are right, I am sure most Nigerians don't know that Major importers are praying for subsidy removal, how can I blame them? when the nitwit they voted as a president told them that the 2011 Ojota protest was sponsored by major importers.

The profit margin on AGO (unsubsidized) is so huge that a return of AGO subsidy can cause war in Nigeria, but hey! the average man on the street is too dumb to apply common sense. when the war is being fought, all you need do is to sell a lie and they will stand on any side of interest they don't even understand.

I don't agree that Subsidy is a scam, but I will say it is laced with corruption, but it is ok! for you to think so as a player in the downstream sector, Upstream sector will definitely have a divergent view because even products from our refineries are equally subsidized.

you need a downstream, upstream and political understanding before you can form an opinion on subsidy removal. thanks for not reading that clap trap article Bushdoc is selling to his ex wife

seangy4konji:
But please I have a baffling question cos I know little about this oil and subsidy things.

Can Nigeria not repair refineries or is it impossible to build new ones?are the old one programmed in such a way that once spoilt it cannot be repaired and companies who build refineries don't exist again?just honking an if anybody can help me with this question.

playboy19:


Sir, you have asked a very valid question that any sensible Nigerian should be asking but unfortunate, politics wouldn't let you get the answer. You may think Nigerian business men were not thinking about building refineries and all the benefits that comes with it, but politics wouldn't let it happen. Like i said earlier, the whole subsidy thing is a large and long standing fraudulent scheme called the 'Nigeria political compensation scheme'. Let me quick give you an example, go back to your archive and check out the 2011 'Friends of Jonathan' presidential campaign fund-raising programme and match the names of the people in attendance with the names of the people indicted for subsidy scam and see what you get.

These are the lobbyists. The ones you call the cabal. So sir, there, is your answer. Like a wise man once told me, buying is cheaper than begging, while stealing or taking is cheaper than buying. These people would rather falsify Bill of laden and delivery documents and get gauranteed fraudulent subsidy cash as compensation for their campaign investment than go thru the hassle and risk of doing the real business, which to me is dumb.

This is a very complex topic to discuss, it takes a first-hand experience of the whole thing to really understand it. Fortunately, Nigerians partially rose up to them and the result; the cabal has been broken back to the original 7. Now the rest have to really do the work and get compensated in another way. This answers why Dangote is suddenly interested in building an $8B refinery with majorly local 'partners'. It's a little complex sir. Just a little...lol

You seriously believe there is a cabal that steal your subsidy funds?
Nigerians will never learn

blym4real:
I rest my case. Tell me the reason why new refineries hasn't been built either by private or the government for the past 12 years.

atlwireles:


NNPC does not need the spot market. In 2005 Obj changed the price formula, where NNPC contract are based on the 30 days NYSE price average, for the 445,000 barrels allocated for our local refineries.

atlwireles:


The government does not have the money,and the private sector hates the business model.

synergycom19:
The Government simply wants to increase the price of fuel because the pool of Funds is gettings ridiculously low due to unregulated looting of the treasury. What about the domestically produce fuel, does it incured dermorage too?why fix price for products you don't sell alone?(Total, Oando, MRS, etc)they all sell fuel too?why not allow them fix there prices as they import from various sourcesThe Government ensures that private refinery don't take off (by fustrating them with impossible conditions) in order to justify the need to fix prices as they like..
MTN, GLO, AIRTELL, ETSALAT, all decides to sell there products as they seem it fit, Customers decides which is cheaper, better network quality, better serviced etc. All this organisations have no business with the Government whatsoever safe for taxes.E.g,MTN sold Sim card for 35,000.00nara when it all started, but today it's free, thanks to market forces
Let the major marketers also import there fuel to us allowing markets/cunsumers forces decides the prices.

VolvoS60:


^^^^
As I asked you in one of my earlier posts: what is the extent of your advocacy for 'appropriate' (i.e. 'global') pricing in local transactions involving ofada rice, palm oil, cocoa, cotton, maize and groundnuts? These are commodities too. Why your insistence on crude oil?

I have made several points to which you have not given a response. You know what these points are so there's no need to repeat them.

I knew this was how it would end.

jpphilips:

I disagree completely, speaking of which, your ECR being shared from 2011 till date can comfortably pay for a refinery, if refining is the problem.
I don't get why you guys don't look beyond this whole refining clap trap.
The good news is this, the Govt need not pay a kobo in any refining investment in Nigeria.

blym4real:
your analysis is a bit confusing, tell us the major problem in the nigeria oil sector

Donxavier:
JP Philips

Am more confused? What is the real problem and what's the solution.

jpphilips:



In 2011, the Pet minister announced that refineries will come, have you seen anyone 3yrs on? do you think they don't want to fix the challenge? my guess is that those guys are too dumb to understand where the challenge came from, they never knew that Refinery is not the reason they pay subsidy.
When they realized it, it was too late to retract the BS they have sold to Nigerians.
If madueke likes, she should go bring the biggest refinery in the world from India, she will still pay subsidy, if you noticed, there have not been TAM contracts lately, because the nitwits have realized that refinery is not the problem.

seangy4konji:
So my brother what you are saying is that the corrupt people will never build a refinery?whyvua Nigeria like this bro?ir saddens me.

Why is the country been run like a fily business. If a car is bad and you have a money. I think it's better to buy a new one instead of jump starting it every where you go.

How can we change this country?the future of our unborn generation is as stake.

Donxavier:
JP Philips

Am more confused? What is the real problem and what's the solution.

"The company decided early in 2011 to fast-track a staged development of its two oil blocks, OPL 915 and OPL 916 by initial completion and production testing of one of the already drilled oil wells and 3D seismic data acquisition"

"The real crux of the matter is that the Presidency has favoured some selected companies by granting them right of first refusal or rather exclusive rights to certain oil blocs on parade. The highly favored companies include Dangote Exploration and Production Company, a subsidiary of Dangote Group. The company was given the right of first refusal on OPL 274 and had equally expressed interest in OPL 2007 and 290.As part of the concession, Dangote agreed to build 300, 000 barrels per stream day refinery and 5000MW independent power plant. The company has already committed millions of dollars as wager on its promised investment. This is however very commendable and an outright show of patriotism and genuine desire to do business with the federal government in the crucial oil and gas sector"

"Defiant Nigerian Petroleum Minister, Diezani Allison-Madueke has defended her decision to transfer the ownership of four oil blocs owned by the federal government through the Nigerian Petroleum Development Company Limited to a company owned by her and run by Mr. Jide Omokore, Atlantic Energy Drilling Concept. The oil blocs are valued at over USD$15.72 trillion.
The minister’s defence of the flagrant looting of the nation’s commonwealth is coming barely 24 hours after a group of anti-corruption civil society groups petitioned the country’s now crippled anti-graft police, the EFCC to probe allegations bordering on the dubious secret transfer of the oil blocs".

jpphilips:


The energy crisis in Nigeria is very easy to fix and our leaders know that, what is lacking is the sincerity of purpose to do the right thing.

GenBuhari:
you are very correct. If only Nigerians would ensure that they make General Buhari the next Head of State, you would be surprised how quickly all these issues would be sorted out.