[size=13pt]Nigeria committed to building new refineries - FG
•Denounces under declaring volume of crude being produced[/size]
From JULIANA TAIWO-OBALONYE, Abuja
Wednesday, March 07, 2012


Despite the low level of profitability from investing in refineries, the Federal Government has declared its commitment to attracting private sector to build new ones to refine the nation’s crude.

The out-going Executive Director, Upstream International SHELL Petroleum Development Company, Malcolm Brinded had last week said refinery business was a no-go area for it in the country, after about 70 years in operation, because it was not a viable business worldwide.
Fielding questions from State House correspondents after meeting with President Goodluck Jonathan, called at his instance to get a brief summary of the in-depth retreat and brainstorming session that lasted for two days with all the operational and technical executives of our national refineries across the entire range of the refineries, the Minister of Petroleum Resources, Diezani Alison-Madueke and GMD NNPC, Mr. Austin Oniwon, said Shell was referring to the global meltdown which had nothing to do with Nigeria.

According to Alison-Madueke, “Shell was talking on the global context because of the global downturn in the economy. Refineries all over the world are operating at a very slight profit margin at this time. That does not suppose that Nigeria will not ensure that its refineries are brought up to at least the 80-90 per cent capacity utilisation range, which is the globally accepted range. Whether we like it or not, we must improve and maintain continuous improvement in the ability to refine our own products and supply at least the higher quantum of refined products for the country’s use. That is a critical necessity and that is what we have to do. We will look at it within the global context but of course we also have to look at our own economy.”

Asked if government was considering attaching as a condition of awarding operating licence the construction of refineries, Alison-Madueke replied, “in terms of attaching conditions to giving new licenses for refineries, I don’t think that is possible, it is not commercially viable, obviously for every acreage that is allocated to be attached to a refinery. For instance if you give 25 licences, we cannot be expecting 25 refineries to be built. What we are trying to do is to rationally determine the commercial viability and the quantum of refineries that will be needed in the country over and beyond the traditional national refineries and to attract that green field investment with private equity and the least government equity involved.”

http://www.sunnewsonline.com/webpages/news/national/2012/mar/07/national-07-03-2012-013.html

[size=13pt]FG gives task force 60 days to revive local refineries[/size]


By Oscarline Onwuemenyi
ABUJA — The Federal Government, yesterday, gave the National Refineries Special Task Force 60 working days to revive the four refineries in the country, even as it said government would not force producing companies in the country to go into refining of petroleum products in order to meet local demand.

The government also disclosed that three proposed Greenfield refineries would be functional by the year 2017.

The Ministry of Petroleum Resources, Mrs. Diezani Alison-Madueke, who stated this while inaugurating the Special Task Force in Abuja, noted that government was determined to revamp the existing refineries for maximum output towards meeting local demand for products.

According to the Chairman of the National Refineries Special Task Force, Dr. Idika Kalu Idika, “I am of the firm opinion that based on our proven and potential reserves in the medium term, Nigerians will like to see at least 10 medium to large scale refineries, and smaller modular refineries that could be spread to all the zones of the Federations.

“We are fully aware of the nation’s expectations from this process. Our assurance to Nigerians is that we will put in our best in unraveling the issues that have bedeviled the functionality of the existing refineries. We shall also, to the best of our abilities proffer ideas and solutions in line with our terms of reference to ensure that our country goes back to self-sufficiency in the supply of locally refined petroleum products.

“We would, in line with our terms of reference, conduct a thorough technical, financial and manpower review of all the refineries, audit the finances and determine the operating capacities as a basis for recommending the financial and technical framework that raise the existing capacities to an acceptable rate, which by global standards is usually between 80 and 90 per cent of installed capacity.

Idika noted that beyond this, the task force was also “committed to the development of a framework that would not only turn around Nigeria’s dependence on importation, but would go further to present a platform for the export of products to the regional market and beyond.

“We will review existing licences granted for establishment of private refineries in a bid to assess the readiness of the operators to utilise the licences.”

We are also fully aware of the contribution of the petrochemicals subs-sector to the development of a robust production driven economy as well as provide jobs for our teeming youth population, and would work hard to resuscitate existing petrochemical industries to utilize the by-products of the refineries.”

Inaugurating the National Refineries Task Force, Mrs. Alison-Madueke noted that, “The state of the nation’s refineries, the shortfall in local production and the gradual increase in importation of petroleum products over the years has been well publicized. Even if the importation of petroleum products appears to be a solution to cover the gap between local production and consumption, it should be a temporary one.

“The best solution for the long term is to attain adequate local refining capacity to fully meet the requirements of domestic consumption. The present administration is determined to reverse the continued negative trend in the refineries’ performance.

“It is for this reason that we are reaching out to patriotic Nigerians with undisputed credibility from inside as well as outside the industry to brainstorm on and seek holistic solutions to re-align our refineries to global standards.”

To that extent, she said, the National Refineries Special Task Force will “review the current state of the refineries vis-à-vis the domestic requirements and refine further a roadmap to grow the nation’s refining capacity, both new and existing, to meet its domestic demand.”

The Minister further noted that, “It will be a very happy day for all Nigerians when we can at last feel like our refineries are working to name-plate capacity, or at least to 90 percent capacity utilization, but beyond that, that we are meeting the greater percentage of our country’s refining needs.”

Among the terms of reference of the Special Task Force include conducting a high level assessment of the Port Harcourt, Warri and Kaduna refineries, and reviewing all past reports and assessments and produce a Diagnostic report complete with a Change Journey Map.

The task force is also expected to review the operations of the three refineries with a view to improving their efficiency and commercial viability, as well as work with a world-class firm to audit the finances of the  three refineries, and produce audited accounts over the past two years ending December 31, 2011.

Other functions include the design of a template for key Production/Management-Critical Performance Indicators to be tracked on a periodic basis for ministerial review, as well as to design an automated information work bench to monitor the performance of Port Harcourt, Warri and Kaduna refineries on an online basis.

The special task force will also review all license issued for new refineries in Nigeria and assess their operational, technical, and financial readiness; seek new ideas and design financial models across the value chain for the building of adequate capacity for meeting local demand for petroleum products.

Also, it is expected to design a blueprint for public and private partnerships (PPP) to build small, medium to large-scale Greenfield refineries across Nigeria, as well as design investment models and a road map to self-sufficiency in local production or petroleum products in Nigeria; and to produce a report complete with timelines and milestones within the next 60 working days.

The Minister noted that task Force’s mandate was without prejudice to government’s on-going programme of rehabilitation and turn-around maintenance of the Port Harcourt, Warri and Kaduna Refineries, and the building of about three Greenfield refineries.

She added that already the government has commenced the engagement of the original equipment manufacturers and competent consultants to provide a thorough technical audit of all existing refineries and provide a blueprint to refurbish the refineries to name-plate capacities, adding that the Special Task Force will be expected to review the technical audit in line with government’s targets and make recommendations.

Refining won’t be condition for oil blocs -    Allison-Madueke

The Minister of Petroleum, Mrs. Deziani Allison-Maduekwe said government would not force producing companies in the country to go into refining of petroleum products in order to meet local demand.

Speaking with State House Correspondents, after the meeting of refineries top executives with Presodent Goodluck Jonathan in the Villa, yesterday, she said attaching the building of refineries as a condition for granting future oil prospecting licenses as a way to ensure the construction of new refineries in the country, saying that such measure was not a commercially viable option.

Her words, “For every accreage that is allocated to be attached to a refinery is impossible. For instance if you give 25 licenses, we cannot be expecting 25 refineries to be built. What we we are trying to do is to rationally determine the commercial viability and the quantum of refineries that will be needed in the country over and beyond the traditional national refineries and to attract that green field investment with private equity and the least government equity involved,” she declared.

Mrs. Allison-Maduekwe led top executives of the nation’s existing four refineries to meet Mr. President with a view to briefing him on efforts towards uptimizing refineries’ output.

The minister regretted that the nation’s refineries could not meet local fuel demand due to out modeled plants.

“A lot of crude” she said is lost s lost “through incessant vandalism and infrastructural problems.,” noting that some of the refineries were out modeled and with out dated equipment and instrumentation.

According to her the refineries top notch had to brief the President on the realities on ground to place the nation’s number one man on a sound footing on the current state of affairs in the sub-sector which she said was necessary for sound policy formulation and implementation in the industry.

She added that  the President was also briefed on the greenfield refines, turn around maintenance and governance structure and a general overview of what came out from the retreat.

The Minister remarked that in spite of the global economic downtown which ensured that refineries were making marginal profits, government would ensure that it’s refineries were brought to at least 80-90 percent capacity utilization range

“whether we like it or not, we must improve and maintain continuous improvement in the ability to refine our own products and supply at least the higher quantum of refined produts for the country’s use. That is a critical necessity and that is what we have to do.”

“So, we are looking not just at the challenges but fashioning a strategy framework, very rubost and aggressive one for moving forward, making a major step change in the way our national refineries are addressed,” she said.

. . . . . . CONTINUED

did i see what you wrote there very well? is that 60 days, months or years? i wish we can kill or even jail them if they fail after this time line.

60 days to revive the nation's refineries is a very long time if you are using a magic wand.

60 days is too short ohhhhh, let's say what we can do.

Kobojunkie, Your first post, though lengthy, was easier read and understood. But the second one, na wah, too long. Next time please give us bullet points especially for people like us who easily get bored with too much details.

Meanwhile, I see this as a mere waste of time. The government is quite aware of the "evil" that makes one a non-performer when he or she assumes government office especially in Nigeria. This is another political rally talk. They have the desire from their hearts to get things right for this country but because of that "evil", they still fail. Until that "evil" is dealt with

60 days to revive local refineries a cruel insult to our sensibilities - it took nearly 2 decades to wind-up the refineries to their present state and you bladdy stick your oafish thumb in the air and say 60 days is feasible - perhaps withdrawal symptoms from paraga and poli poli
Easily the obvious signs of FG deception

newnairaway:

60 days? we sure need magicians

What a joke how impossible can that be

lagerwhenindoubt:

60 days to revive local refineries a cruel insult to our sensibilities - it took nearly 2 decades to wind-up the refineries to their present state and you bladdy stick your oafish thumb in the air and say 60 days is feasible - perhaps withdrawal symptoms from paraga and poli poli
Easily the obvious signs of FG deception

This has been my thought while going through the post
Kai @kobojunkie make the length text shorter next time, we have a lot we are doing and also a lot of pages we want to read through and contribute to,

Coming to think of it what is the function of the Ministry of Petroleum when practically what they are supposed to be doing would be done by committee upon committee what a waste of our funds and resources

Saboteurs are the real problem, not re-activating new refineries

1025:

did i see what you wrote there very well? is that 60 days, months or years? i wish we can kill or even jail them if they fail after this time line.

Bawss1:

60 days to revive the nation's refineries is a very long time if you are using a magic wand.

That of Harry Porter will need an upgrade to do the job.

Problem with this goverment is that they always talk themselves into shame.

And he expects a proper work to be done within 60days right Our targets often times are never reasonable and that is why we never get things right.

. . . . . . continuation . . .

ABUJA — The Federal Government, yesterday, gave the National Refineries Special Task Force 60 working days to revive the four refineries in the country, even as it said government would not force producing companies in the country to go into refining of petroleum products in order to meet local demand.

The government also disclosed that three proposed Greenfield refineries would be functional by the year 2017.

The Ministry of Petroleum Resources, Mrs. Diezani AlisonMadueke, who stated this while inaugurating the Special Task Force in Abuja, noted that government was determined to revamp the existing refineries for maximum output towards meeting local demand for products.

According to the Chairman of the National Refineries Special Task Force, Dr. Idika Kalu Idika, “I am of the firm opinion that based on our proven and potential reserves in the medium term, Nigerians will like to see at least 10 medium to large scale refineries, and smaller modular refineries that could be spread to all the zones of the Federations.

“We are fully aware of the nation’s expectations from this process. Our assurance to Nigerians is that we will put in our best in unraveling the issues that have bedeviled the functionality of the existing refineries. We shall also, to the best of our abilities proffer ideas and solutions in line with our terms of reference to ensure that our country goes back to self-sufficiency in the supply of locally refined petroleum products.

“We would, in line with our terms of reference, conduct a thorough technical, financial and manpower review of all the refineries, audit the finances and determine the operating capacities as a basis for recommending the financial and technical framework that raise the existing capacities to an acceptable rate, which by global standards is usually between 80 and 90 per cent of installed capacity.

Idika noted that beyond this, the task force was also “committed to the development of a framework that would not only turn around Nigeria’s dependence on importation, but would go further to present a platform for the export of products to the regional market and beyond.

“We will review existing licences granted for establishment of private refineries in a bid to assess the readiness of the operators to utilise the licences.”

We are also fully aware of the contribution of the petrochemicals subs-sector to the development of a robust production driven economy as well as provide jobs for our teeming youth population, and would work hard to resuscitate existing petrochemical industries to utilize the by-products of the refineries.”

Inaugurating the National Refineries Task Force, Mrs. Alison-Madueke noted that, “The state of the nation’s refineries, the shortfall in local production and the gradual increase in importation of petroleum products over the years has been well publicized. Even if the importation of petroleum products appears to be a solution to cover the gap between local production and consumption, it should be a temporary one.

“The best solution for the long term is to attain adequate local refining capacity to fully meet the requirements of domestic consumption. The present administration is determined to reverse the continued negative trend in the refineries’ performance.

“It is for this reason that we are reaching out to patriotic Nigerians with undisputed credibility from inside as well as outside the industry to brainstorm on and seek holistic solutions to re-align our refineries to global standards.”

To that extent, she said, the National Refineries Special Task Force will “review the current state of the refineries vis-à-vis the domestic requirements and refine further a roadmap to grow the nation’s refining capacity, both new and existing, to meet its domestic demand.”

The Minister further noted that, “It will be a very happy day for all Nigerians when we can at last feel like our refineries are working to name-plate capacity, or at least to 90 percent capacity utilization, but beyond that, that we are meeting the greater percentage of our country’s refining needs.”

Among the terms of reference of the Special Task Force include conducting a high level assessment of the Port Harcourt, Warri and Kaduna refineries, and reviewing all past reports and assessments and produce a Diagnostic report complete with a Change Journey Map.

The task force is also expected to review the operations of the three refineries with a view to improving their efficiency and commercial viability, as well as work with a world-class firm to audit the finances of the  three refineries, and produce audited accounts over the past two years ending December 31, 2011.

Other functions include the design of a template for key Production/Management-Critical Performance Indicators to be tracked on a periodic basis for ministerial review, as well as to design an automated information work bench to monitor the performance of Port Harcourt, warri and Kaduna refineries on an online basis.

The special task force will also review all license issued for new refineries in Nigeria and assess their operational, technical, and financial readiness; seek new ideas and design financial models across the value chain for the building of adequate capacity for meeting local demand for petroleum products.

Also, it is expected to design a blueprint for public and private partnerships (PPP) to build small, medium to large-scale Greenfield refineries across Nigeria, as well as design investment models and a road map to self-sufficiency in local production or petroleum products in Nigeria; and to produce a report complete with timelines and milestones within the next 60 working days.

The Minister noted that task Force’s mandate was without prejudice to government’s on-going programme of rehabilitation and turn-around maintenance of the Port Harcourt, Warri and Kaduna Refineries, and the building of about three Greenfield refineries.

She added that already the government has commenced the engagement of the original equipment manufacturers and competent consultants to provide a thorough technical audit of all existing refineries and provide a blueprint to refurbish the refineries to name-plate capacities, adding that the Special Task Force will be expected to review the technical audit in line with government’s targets and make recommendations.

Refining won’t be condition for oil blocs -    Allison-Madueke

The Minister of Petroleum, Mrs. Deziani Allison-Maduekwe said government would not force producing companies in the country to go into refining of petroleum products in order to meet local demand.

Speaking with State House Correspondents, after the meeting of refineries top executives with Presodent Goodluck Jonathan in the Villa, yesterday, she said attaching the building of refineries as a condition for granting future oil prospecting licenses as a way to ensure the construction of new refineries in the country, saying that such measure was not a commercially viable option.

Her words, “For every accreage that is allocated to be attached to a refinery is impossible. For instance if you give 25 licenses, we cannot be expecting 25 refineries to be built. What we we are trying to do is to rationally determine the commercial viability and the quantum of refineries that will be needed in the country over and beyond the traditional national refineries and to attract that green field investment with private equity and the least government equity involved,” she declared.

Mrs. Allison-Maduekwe led top executives of the nation’s existing four refineries to meet Mr. President with a view to briefing him on efforts towards uptimizing refineries’ output.

The minister regretted that the nation’s refineries could not meet local fuel demand due to out modeled plants.

“A lot of crude” she said is lost s lost “through incessant vandalism and infrastructural problems.,” noting that some of the refineries were out modeled and with out dated equipment and instrumentation.

According to her the refineries top notch had to brief the President on the realities on ground to place the nation’s number one man on a sound footing on the current state of affairs in the sub-sector which she said was necessary for sound policy formulation and implementation in the industry.

She added that  the President was also briefed on the greenfield refines, turn around maintenance and governance structure and a general overview of what came out from the retreat.

The Minister remarked that in spite of the global economic downtown which ensured that refineries were making marginal profits, government would ensure that it’s refineries were brought to at least 80-90 percent capacity utilization range

“whether we like it or not, we must improve and maintain continuous improvement in the ability to refine our own products and supply at least the higher quantum of refined products for the country’s use. That is a critical necessity and that is what we have to do.”

“So, we are looking not just at the challenges but fashioning a strategy framework, very robust and aggressive one for moving forward, making a major step change in the way our national refineries are addressed,” she said.

http://www.vanguardngr.com/2012/03/fg-gives-task-force-60-days-to-revive-local-refineries/

Well it's a start in the right direction at least!

@kobojunkie yet again this your agression is quite palpable too long

olajide_07:

@kobojunkie yet again this your agression is quite palpable too long

She go gree hear