Minister of State for Petroleum, Ibe Kachikwu yesterday announced that Kaduna, Port Harcourt and Warri refineries will be in full capacity in first quarter of 2016.
He said Kaduna refinery is already producing about 1.5 million litres a day, while Port Harcourt will commence production of about 2 million litres a day by next week, while Warri is expected to start full production early next year.
He also debunked speculations that the refineries are obsolete, saying they are up to date and only need some refurbishment in order to make them to produce at full capacity.
According to him, Nigerian refineries are not up to 40 years, while in the United States of America there are oil refineries that are 60 years old and still functioning.
The minister who disclosed this while in Kaduna Refinery and Petrochemical Company (KRPC) on oversight visit, said by next year the refineries are expected to produce 10 million liters a day.
He also pointed out that, despite the refineries full capacity production the country will continue importing fuel.
“We are still going to be importing, even if you are in hundred percent capacity, production of about four hundred and forty five thousand barrels capacity for the plant, you will still be doing less than two million litres, consumption is even at best with all we have done moving it from fifty to forty, it is still 50 percent.
”So until we begin to get individuals who can co-relocate new refineries within the premises of existing refineries to expand the capacity, that’s the best way to go. And that is the only way we are going to be committed to it.
“We are looking for investors who have the capacity, the speed and the time to be able to accomplish on that. But until we do that, we are going to be doing a mixture.
“Best case situation is a twenty five to forty percent of local production and the rest being imported, worst case situation is what we have seen in the last few months of hundred percent importation.”, he said.
The minister also said that he directed the refineries to look at the commercial view of their plants in order to use every arm of the refinery to generate profit.
“A typical refinery will look at their looms, the petrochemical areas, will look at their power areas and see how they can probably expand the value chain and the potentials, that’s certainly what we are looking at”, he said.
On the disappearance of queues in filling stations across the country, Kachikwu expressed confidence that the queues in the filling stations will end in the next two weeks.
“Some of these factors are not in anybody’s control, one of the things i want people to understand is that NNPC is not setup to be a hundred percent importer for the country.
“We are a last intervention force, that is what we are and this business should be run by marketers who make money out of it, bringing their products, selling their stations. It is not the business of NNPC really to be providing them hundred percent capacity, but because there was over one year delay in payment subsidy.
“Because of the excess challenges that marketers have had, NNPC had to wrap up on the forty percent to about eighty capacities right now. And with that comes also with the responsibility in terms of distribution, in terms of clearing and other related issues.
“And bad pipeline are not exactly helping matters so it been huge amount of work we have to do in the last nine weeks just keeping people on the roads, I personally never had window of three hours to sleep over that period. Now we have been able to clear some of them but there is still a lot more work to be done. “, he explained.
He also denied insinuation that there are plans to sell the countries refines, saying there was no such plan by the government.
https://www.today.ng/news/national/58045/refineries-to-operate-full-capacity-in-3-months-kachikwu

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I think we should be urgently looking for ways to diversify our income considering the dwindling price of crude. By the predictions,crude might fall as low as $20 per barrel by 2016.
Yes,you heard that correctly.

This kaichukwu is never stable when talking, No wonder OPEC Booted him out, they don't want someone who is unstable.

Make we dey dance or what

I am interesting in "why" and "what" happened that over 30 private modular refineries are not producing refined products.

3 months?
LOL.....
Story for the gods.
APC and their propaganda

Cool story bro.................

Nice one. When you listen to Kachikwu, he clearly looks the part.

Bevista:
Nice one. When you listen to Kachikwu, he clearly looks the part.

on monday he said kd is refining 3.3million litres, tuesday story change to 2.3million litres, today na 1.5million litrs. who knows what he will say on wednesday.
its like kachikwu is learning faster than we thought!
abeg how much be naija refined fuel? cos i know prolly well that aba made suit is not sold d same as italian made.
food for thought!

Good to hear. Nigeria is progressing while wailers are busy wailing and raising false threat alarm !!!!

sammyj:
Good to hear. Nigeria is progressing while wailers are busy wailing and raising false threat alarm !!!!

Have you ever sat back and looked over the inconsistent news from kachikwu

We are waiting. This government and future tense sef.

sammyj:
Good to hear. Nigeria is progressing while wailers are busy wailing and raising false threat alarm !!!!

At bolded, how? You mean in using future tense?

Good Report. Please let the Government Stop all payment of oil subsidies and leave fuel @N100 per litre.

orisa37:
Good Report. Please let the Government Stop all payment of oil subsidies and leave fuel @N100 per litre.

I hope you are still in this country so you can drink the fuel at N145 per liter.. see your anofia nose

Fuel was selling @ N97 when I made this comment. I only added N3. The Government disregarded my suggestion, retained subsidies and brought price down to N86. And now that he has increased the price to N145, what is my business to deserve your adverse comments? Or are you too a bokoharam?