any opening on this contract

abeg nah today

efilefun:
Many of life's problems requires thinking and strategy and not necessary prayer. Prayer is good nonetheless, but the worst form of stupidity, is to spiritualize everything. Even God himself, has bequeathed on us the skills and gifts to tackle and rise above every problem. He will do his part while we do ours.

Thanks. Prayer is a spiritual weapon but many nigerians have refused to understand. I have even heard governors and presidents say that nigerians should pray for physical national problems to be solved. I make bold to say that using prayer to address physical challenges will never yield desired results. Nigerian's must wake up to practical realities of life as demanded by current times. It is by doing this that we can move forward as a nation.

Why not make it a round figure of 100 billion.thieves.we need independent consultants not in house thieves parading themselves as staff

okayyyyyooooo,so with all these headlines popping what has gej and his TANdroids been doing since the past 7yrs.....speaking of which i tot the sunsidy revenue was to repair the same refineries,those were the creepy gej's exart words......smh baba has alot of rehabilitation ahead of him

Smartestelvis:
okayyyyyooooo,so with all these headlines popping what has gej and his TANdroids been doing since the past 7yrs.....speaking of which i tot the sunsidy revenue was to repair the same refineries,those were the creepy gej's exart words......smh baba has alot of rehabilitation ahead of him

Well that was what they told us in 2012 at the Lagos town hall meeting that, the money saved will be used in fixing the refineries. While Diezani alone was flying to who knows where with roughly 10% of the N99b needed for TAM for four refineries.

Empero1:
Do we have engineers in Nigeria . At best we have some engineers of Nigerian origin . Let's award the contract to a Nigerian firm that has a Joint Venture Contract with a solid foreign engineering firm . Presenting a low budget sum is not the matter , carrying out the job and delivering best standard work in the end is the main thing .

I pray and hope the federal government will see reason to consider my company bid for this contract , so that we can show the stuff we are made of . Service to humanity remain our motto .

i disagree with u bro,never u underestimate our indigeneous engrs,even most big engineering firms here have some good foreign whites hired in them.majority of our engineeers bagged their degrees from foreign reputable universities so its a bit of a stretch to belittle and underestimate our brains here.....i expect you to direct ur protests toward s the corupt hags we have s leaders.....on a 2nd tot,do u know that the funds they even stipulate and anounce on media is rarely made available to contractors,dnt ask me where the funds disappears to.......

989900:


Well that was what they told us in 2012 at the Lagos town hall meeting that, the money saved will be used in fixing the refineries. While Diezani alone was flying to who knows where with roughly 10% of the N99b needed for TAM for four refineries.

not to mention that he(gej) even made a promise that by dis time of d era d fuel pump price must have drastically reduced,bro i get all confused n irritated each time i immagine the fact that a few potbellied moustache animals could scam a country supposely to be over 170million in populance.........dis is terifying

Sirniyeh:
Foreign Engineers billed for N288billions and promised to execute within a year while Nigeria Engineers to collect N99billions with no specific time-frame

believe me..IT IS FAR FAR FARRRRRRRRRRRRR OVER INFLATED PRICE......get the Chinese to build new ones and you will be surprised at the quotes they will present.

pfffftt Jona government...yeye useless government.

calebo101:
Just privatize the refineries and let government only regulate it. I'm not for government owning anything. They have never managed anything from NITEL, NEPA, NPA, AIRWAYS, etc.

The Bureaucratic operational methods in Government circles wouldn't make them achieve anything unlike private firms who takes their investment serious. Just as we have MTN, ETISALAT, AIRTEL, and GLO all competing fairly in the market pushing down prices so will it be in years time if we can successfully privatize NNPC to the right hands.

I agree with you,but if the privatisation is this type they did for PHCN to EDDC and co,let government continue to manage am. Half bread they said is better than none.

Is it true we've been scammed??

Is it true we trully consume 30-40 million litres of PMS/day with all this offshore Cotonue and 'paper vessels'?

1) One barrel of Crude oil = 42gallons or
159 litres

, 2) Our Refineries (i.e 4) Installed
(combined) capacity = 445,000
, barrels per day= 70,755,000 litres/day

3) Actual refineries capacity due to
ageing equipment = 30% i.e. 133,500
barrels per day
.
4) . . 133,500 barrels = 21.2 million litres

5)If truly our Local required consumption (F.O.S) =
35millions litres

6) It means that even our MORIBOND
refineries can actually meet over 60% of our local
consumption need of petroleum.

7) The cost structure of crude oil (i.e.
Qua Iboe Crude Oil) production;
- Findings / development - $3.5
- Production cost - $1.5
- Refining Cost - $12.6
- Pipeline/transportation - $1.5
- Distr/bridging fund Margin -$15.69

cool True cost of one litre of petroleum
anywhere in Nigeria;
- Total sum cost = $34.8
- 1ltr cost = $34.8/159 litres = $0.219
- Naira equiv. 0.219xN160= N35.02k
- Add Tax N5 + N35.02 = N40.02

9) Let FGN refute the above composition
and if not, they should tell us how
they came about N65/litre.

10) Locally refined products cannot be
sold at International price.

11) We really do not need FGN SUBSIDY
as there was NONE in the first place.

12) What is LACKING, is the WILL to
enforce LAW ON CORRUPTION.

Actual Analysis was done by Professor Tam David West, former Petroleum Minister when exchange was N160/$.

It is very difficult to believe any government in this country. May be this is another phony project that would lead to nothing. One nigeria is a curse.

Every governments have used this kind way to defraud the country.

vheMa:
No gree o . Na lie o 283billion





Always check my signature after reading my comment

d person u r campaigning for is not so intelligent, since she keep using "been" instead of "being"

calebo101:
Just privatize the refineries and let government only regulate it. I'm not for government owning anything. They have never managed anything from NITEL, NEPA, NPA, AIRWAYS, etc.

The Bureaucratic operational methods in Government circles wouldn't make them achieve anything unlike private firms who takes their investment serious. Just as we have MTN, ETISALAT, AIRTEL, and GLO all competing fairly in the market pushing down prices so will it be in years time if we can successfully privatize NNPC to the right hands.

Although your statement might hold some truths but your example of privatisation is just one sector of the economy (telecoms) that is not good reason

December 10, 2011, if you stopped at the Mobil filling station on Old Aba Road in Port Harcourt , you would be able to buy a litre of petrol for 65 naira or $1.66 per gallon at an exchange rate of $1/N157 and 4 litres per gallon. This is the official price. The government claims that this price would have been subsidized at N73/litre and that the true price of a litre of petrol in Port Harcourt is N138/litre or $3.52 per gallon.

They are therefore determined to remove their subsidy and sell the gallon at $3.52. But, On December 10, 2011, if you stopped at the Mobil Gas station on E83rd St and Flatlands Avenue in Brooklyn, New York, USA, you would be a able to buy a gallon of petrol for $3.52/gallon. Both gallons of petrol would have been refined from Nigerian crude oil. The only difference would be that the gallon in New York was refined in a US North East refinery from Nigerian crude exported from the Qua Iboe Crude Terminal in Nigeria while the Port Harcourt gallon was either refined in Port Harcourt or imported. The idea that a gallon of petrol from Nigerian crude oil cost the same in New York as in Port Harcourt runs against basic economic logic. Hence, Nigerians suspect that there is something irrational and fishy about such pricing. What they would like to know is the exact cost of 1 litre of petrol in Nigeria .

We will answer this question in the simplest economic terms despite the attempts of the Nigerian government to muddle up the issue. What is the true cost of a litre of petrol in Nigeria ? The Nigerian government has earmarked 445000 barrel per day throughput for meeting domestic refinery products demands. These volumes are not for export. They are public goods reserved for internal consumption. We will limit our analysis to this volume of crude oil. At the refinery gate in Port Harcourt, the cost of a barrel of Qua Iboe crude oil is made up of the finding /development cost ($3.5/bbl) and a production/storage /transportation cost of $1.50 per barrel.

Thus, at $5 per barrel, we can get Nigerian Qua Iboe crude to the refining gates at Port Harcourt and Warri. One barrel is 42 gallons or 168 litres. The price of 1 barrel of petrol at the Depot gate is the sum of the cost of crude oil, the refining cost and the pipeline transportation cost. Refining costs are at $12.6 per barrel and pipeline distribution cost are $1.50 per barrel. The Distribution Margins (Retailers, Transporters, Dealers, Bridging Funds, Administrative charges etc) are N15.49/litre or $16.58 per barrel. The true cost of 1 litre of petrol at the Mobil filling station in Port Harcourt or anywhere else in Nigeria is therefore ($5 +$12.6+$1.5+$16.6) or $35.7 per barrel . This is equal to N33.36 per litre compared to the official price of N65 per litre. Prof. Tam David West is right. There is no petrol subsidy in Nigeria . Rather the current official prices are too high. Let us continue with some basic energy economics.

The government claims we are currently operating our refineries at 38.2% efficiency. When we refine a barrel of crude oil, we get more than just petrol. If we refine 1 barrel (42 gallons) of crude oil, we will get 45 gallons of petroleum products. The 45 gallons of petroleum products consist of 4 gallons of LPG, 19.5 gallons of Gasoline, 10 gallons of Diesel, 4 gallons of Jet Fuel/Kerosene, 2.5 gallons of Fuel Oil and 5 gallons of Bottoms. Thus, at 38.2% of refining capacity, we have about 170000 bbls of throughput refined for about 13.26 million litres of petrol, 6.8 million litres of diesel and 2.72 million litres of kerosene/jet fuel.

This is not enough to meet internal national demand. So, we send the remaining of our non-export crude oil volume (275000 barrels per day) to be refined abroad and import the petroleum product back into the country. We will just pay for shipping and refining. The Nigerian government exchanges the 275000 barrels per day with commodity traders (90000 barrels per day to Duke Oil, 60000 barrels per day to Trafigura (Puma Energy), 60000 barrels per day to Societe Ivoirienne de Raffinage (SIR) in Abidjan, Ivory Coast and 65000 barrels per days to unknown sources) in a swap deal. The landing cost of a litre of petrol is N123.32 and the distribution margins are N15.49 according to the government. The cost of a litre is therefore (N123.32+N15.49) or N138.81 . This is equivalent to $3.54 per gallon or $148.54 per barrel. In technical terms, one barrel of Nigerian crude oil has a volume yield of 6.6% of AGO, 20.7% of Gasoline, 9.5% of Kerosene/Jet fuel, 30.6% of Diesel, 32.6% of Fuel oil / Bottoms when it is refined.

Using a netback calculation method, we can easily calculate the true cost of a litre of imported petrol from swapped oil. The gross product revenue of a refined barrel of crude oil is the sum of the volume of each refined product multiplied by its price. Domestic prices are $174.48/barrel for AGO, $69.55/barrel for Gasoline (PMS or petrol), $172.22/barrel for Diesel Oil, $53.5/barrel for Kerosene and $129.68/barrel for Fuel Oil. Let us substitute the government imported PMS price of $148.54 per barrel for the domestic price of petrol/gasoline. Our gross product revenue per swapped barrel would be (174.48*0.066 +148.54*0.207+172.22*0.306+ 53.5*0.095+129.68*0.326) or $142.32 per barrel. We have to remove the international cost of a barrel of Nigerian crude oil ($107 per barrel) from this to get the net cost of imported swapped petroleum products to Nigerian consumers. The net cost of swapped petroleum products would therefore be $142.32 -$107 or $35.32 per barrel of swapped crude oil. This comes out to be a net of $36.86 per barrel of petrol or N34.45 per litre.

This is the true cost of a litre of imported swapped petrol and not the landing cost of N138 per litre claimed by the government. The pro-subsidy Nigerian government pretends the price of swapped crude oil is $0 per barrel (N0 per litre) while the resulting petroleum products is $148.54 per barrel (N138 per litre). The government therefore argues that the “subsidy” is N138.81-N65 or N73.81 per litre. But, if landing cost of the petroleum products is at international price ($148.54 per barrel), then the take-off price of the swapped crude oil should be at international price ($107 per barrel). This is basic economic logic outside the ideological prisms of the World Bank. The traders/petroleum products importers and the Nigerian government are charging Nigerians for the crude oil while they are getting it free.

So let us conclude this basic economic exercise. If the true price of 38.2% of our petrol supply from our local refinery is N33.36/litre and the remaining 61.8% has a true price of N34.45 per litre, then the average true price is (0.382*33.36+0.618*34.45) or N34.03 per litre. The official price is N65 per litre and the true price with government figures is about N34 per litre (even with our moribund refineries).

There is therefore no petrol subsidy. Rather, there is a high sales tax of 91.2% at current prices of N65 per litre. The labor leaders meeting the President should go with their economists. They should send economists and political scientists as representatives to the Senate Committee investigating the petroleum subsidy issue. There are many expert economists and political scientists in ASUU who will gladly represent the view of the majority. The labor leaders should not let anyone get away with the economic fallacy that the swapped oil is free while its refined products must be sold at international prices in the Nigerian domestic market.

The government should explain at what price the swapped crude oil was sold and where the money accruing from these sales have been kept. We have done this simple economic analysis of the Nigerian petroleum products market to show that there is no petrol subsidy what so ever. In the end, this debate on petrol subsidy and the attempt of the government to transfer wealth from the Nigerian masses to a petrol cabal will be decided in the streets. Nigerian workers, farmers, students, market women, youths, unemployed, NGO and civil society as a whole should prepare for a long harmattan season of protracted struggle. They should not just embark on 3 days strike/protests after which the government reduces the hiked petroleum prices by a few Nairas. They must embark upon in a sustainable struggle that will lead to fundamental changes. Let us remove our entire political subsidy from the government and end this petroleum products subsidy debate once and for all. It is time to bring the Arab Spring south.

Izielen Agbon Izielen Agbon writes from Dallas, Texas. izielenagbon@yahoo.com

He is former HOD , Petroleum Eng Dept, former ASUU chairman University of Ibadan, trained many operators in nation's energy industry with pratical experience on our practices and policy focus in the last 20yrs

http://saharareporters.com/2011/12/15/real-cost-nigeria-petrol-dr-izielen-agbon

kenex4ever:
d person u r campaigning for is not so intelligent, since she keep using "[/b]been[/b]" instead of "being"

if that's the only reason;that's cool,its a mistake. And if u don't accept it #YouBeLookuLooku . Vote 4 her o

vheMa:
if that's the only reason;that's cool,its a mistake. And if u don't accept it #YouBeLookuLooku . Vote 4 her o

a mistake repeated over 3times is ignorance

[color=#006600][/color]

philips70:
Honestly, what's the gain from FTC that lots take it so personal like this? Now to topic, mere N288b and Diezani and GEJ just couldn't do this to at least augment for imports and some inwis will come here to shout hero and Nobel. This is less than $1.5b knowing how much these criminals have stolen from our vaults in 4 years. Thunder fire anybody that says GMB should not PERSECUTE GEJ and his ministers.

I hate people accusing others of wrong doing just because some propagandists said so.
Do you have any Empirical Evidence of these your allegations ? If not, stop bearing false witness against your ' enemies '.

[/color][color=#006600]

philips70:
Honestly, what's the gain from FTC that lots take it so personal like this? Now to topic, mere N288b and Diezani and GEJ just couldn't do this to at least augment for imports and some inwis will come here to shout hero and Nobel. This is less than $1.5b knowing how much these criminals have stolen from our vaults in 4 years. Thunder fire anybody that says GMB should not PERSECUTE GEJ and his ministers.

I hate people accusing others of wrong doing just because some propagandists said so.
Do you have any Empirical Evidence of these your allegations ? If not, stop bearing false witness against your ' enemies '.

2 trillion wasted on campaign and there is no money for 288billion....they better fork-out that money and pay the foreigners to start work asap so we can have fuel price at 40 naira per litre.

Oh it is now they want to repair the refineries abi?

They have unconsciously admitted that they need to be sacked!

MzJackBaueress:
The money Diezian Allison Madueke stole is enough to pay for the repairs of the refineries.

Funny bt so true FACT

Nigerians can't wait for the private companies to fix the refineries. Government should fix it then sell it off to the highest bidder.

calebo101:
Just privatize the refineries and let government only regulate it. I'm not for government owning anything. They have never managed anything from NITEL, NEPA, NPA, AIRWAYS, etc.

The Bureaucratic operational methods in Government circles wouldn't make them achieve anything unlike private firms who takes their investment serious. Just as we have MTN, ETISALAT, AIRTEL, and GLO all competing fairly in the market pushing down prices so will it be in years time if we can successfully privatize NNPC to the right hands.

One Orijin for this guy..

So $550 million is on high side to put the refineries working while you and Diezani,GEJ,Okonjo and others happily shared $20 billion amongst themselves. I think GMB should take a drastic measures by throwing GEJ,Diezani,Okonjo and other thieves to 1000 years imprisonment without option of fine. Bunch of financial criminals.

No wonder, someone is crying he'll be persecuted.
Thunder fire them.

Abeg,stop fo.oling ur self.do u think refinery repair is all about chemistry?.....structural,mechanical,pipeline,civil and petroleum engineers are involved.or do u think a refinery is as small as a chemisty lab?...stop quoting ababio here.

jantavanta:
What is the big deal in refinery?
The main component that determines the yield is the Fluid Catalytic Cracking Unit which requires a catalyst to converted petroleum to petrol, kerosene, etc.

This catalyst can be ordered online. Catalysts that produce better yield cost more.

Let tertiary institutions be given projects to build refineries.