BALLOSKI:
this is why I said I was looking forward to your insightful contribution.

To be honest with you , I found more reason to learn from this post above than having to counter it. Maybe it's because I read geology in the university - you can understand my inclination.

Again, I want to know how possible it's for those crooks to present papers of their affiliatelion to a certain refinery in ivory coast and have things worked out for them at nnpc like it used to be? They have some blacklisted refineries who helped in refining stolen crude from Nigeria, so that one in cote d'ivore should be there among the blacklisted ones and considering what you stated above, they should be.

If owning a modular refinery is another criteria for getting off, doyiu know how many Nigerians own this outside of this country? Or are they going to claim ownership of such refinery overnight simply because we have a new policy in place? I guess Kachikwu knows those that have the capacity and requisite know-how when they call for bidding, himself having been in the system for such a long time.

Making Modular Refineries Profitable | by BY MICHAEL EBOH | Vanguard Newspapers, October 06, 2015 |

Nigerians await the coming on stream of modular refineries, operators and stakeholders in the petroleum sector have emphasized the need for a clear commercial framework, proper logistics, deregulation of the downstream sector and certain government guarantees.

They argued that without these, investors will face difficulties in recouping their investments, while the country will not achieve any meaningful benefits from the refineries.

President Muhammadu Buhari had in the wake of his administration granted licenses to investors to build 65 modular refineries in the country. This was after previous licenses issued by past administrations failed to yield any positive results, as only one, Niger Delta Petroleum Development Company, was able to install a modular refinery.

Stakeholders, however, attributed the success of the Niger Delta Petroleum refinery to the fact that it produces only automotive gas oil, AGO, popularly called, diesel, which is not a regulated commodity.

Commenting on the ways to make modular refineries profitable to investors and beneficial to Nigeria, Mr. Chijioke Nwaozuzu, a Professor of Petroleum Engineering, University of Port Harcourt, River State, emphasized the need for government guarantees to investors that it is possible to recoup investments made in private refineries. http://www.vanguardngr.com/2015/10/making-modular-refineries-profitable/

laudate:


Guy, you want me to reveal how these sharp practices are conducted?? I want to live long. I am not ready to see my name on anybody's hit list.

Kindly note that agreements signed with these offshore refineries are done in form of documents that recognise these Nigerian oil traders, as their clients, or affiliates. It does NOT confer ownership of the refineries, on any of these oil traders. If NNPC staff get those documents, all they do is send an e-mail or conduct their due diligence to confirm that those agreements were actually issued by the refinery, and are still valid. Do you get?? On that basis, they could assign a crude cargo to the local oil trader under the presumption, that the cargo would go to that specific refinery, without realising it could be diverted elsewhere.

Now, if that cargo of crude is loaded on board a vessel and it does not get to to the said refinery but it is directed to another refinery elsewhere, how would NNPC know? They might find out, but it would probably take time and it would most likely be discovered after the deed has been done. As for the Abidjan refinery, I am not aware that it was blacklisted by NNPC. When was this done??

Secondly, with respect to petroleum products, most of the vessels operating in West African waters have local crew on board. Sometimes, these vessels come into Nigerian waters and their documents are duly stamped on arrival. During discharge of the products, shortages could occur which are not recorded on the documents. Some local staff at the point of discharge could be made to turn a blind eye, for the right fee. But full fees are still paid by the federal govt/NNPC to cover the entire product, on the misguided assumption that full delivery of the specified quantity has been made. Now, if these shortages accumulate over a period of time, who turns out to be the loser?? The receiver which is the govt or NNPC.

Another scheme is bring the vessels fully laden with products into Nigerian waters, where it is officially inspected and the documents are stamped. Later, these vessels sail away without discharging their products, (or after only partial discharge of a nominal quantity) under some guise or the other. Such products are then sold to other buyers off-shore. Yet the relevant documents are stamped as being fully discharged into Nigerian depots, after money has exchanged hands.

Thirdly, another scheme is for some unscrupulous dealers to just forge the appropriate documents, and get them stamped without even bringing any vessels or importing any petroleum products. Such documents are then presented to PPRA, NNPC etc for processing and payment. Again, for this to occur, money has already been exchanged from the top to the bottom of the chain.

Finally, with respect to owning a modular refinery, I was talking of setting up such refineries within Nigeria, under a specified period of time. Niger-Delta Petroleum Company (NDPC) has a modular refinery in Delta State which it uses to refine crude from its own oil wells, to produce diesel. It is a small operation, but for now it serves their purpose and they are also able to sell part of the diesel they produce within the country. More firms need to be encourage to set up such refineries, to boost our local refining capacity.

omenka:
Expect the cries of secession to increase three folds. These are the people sponsoring all that nonsense in the hope of distracting the government and ultimately crystalising chaos which would ensure they keep making abominable profits at the expense of the common man. They see Baba as a threat to their control of the levers of our polity/economy and would do anything, regardless of its propriety, to ensure they perpetually lord it over us.

Toss a few change here and there they would, and the same people we saw yelling GEJ till thy Kingdom come would be the ones shouting Biafra!!

#OnlyTimeWillTell.