By Michael Eboh Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, Tuesday, stated that the Federal Government will no longer invest in the repairs of the country’s refineries, and would also not concession or privatize the refineries.

This was even as the Chairman of the House of Representatives Committee on Petroleum (Upstream) Committee, Mr. Victor Nwokolo, called on the Federal Government to revoke oil blocks allocated oil and gas companies who fail to pay signature bonuses to the Federal Government and those who obtained their licenses through the back door.

In a statement by the Ministry of Petroleum Resources, Kachikwu stated that rather than concession or privatise the refineries, the government would encourage private sector investment and subsequent joint ownership and management of the facilities for greater efficiency.

A picture taken on September 16, 2015 shows workers trying to tie a pipe of the first refinery in Nigeria, which was built in 1965 in oil rich Port Harcourt, Rivers State.

The Port Harcourt refinery is Nigeria’s oldest, built in 1965, nine years after crude was first found under the marshy soil and creeks of the delta, where the Niger river meanders to the Gulf of Guinea. Refineries in nearby Warri and Kaduna in the north central region were built in the years that followed, while a new plant was added to the same site in Port Harcourt in 1989.

In recent years, however, it became a byword for corruption, a murky, state-run body where billions of dollars in revenue apparently disappeared.

AFP PHOTO Kachikwu, who was addressing members of the House Committee who were on an oversight visit to the Ministry, explained that the Federal Government was working hard to bring in private investment capital to strengthen the refineries in order to boost the nation’s local refining capacity.

He said, “For the purpose of efficient management of the refineries, government money will not be committed to the refineries any more. Prospective private investors will bring in their money, take part in managing the refineries and from there recoup their investment.” Reeling out some of the achievements of the Ministry, Kachikwu noted that since the deregulation of the downstream of the petroleum sector in June, the masterstroke has ensured the availability of petrol at filling stations across the country at affordable prices.

He added that the roadshows to China and India have secured for the nation Memoranda of Understandings (MOU) worth about $80 billion and that efforts are now on to give effect to the MOUs so that real money can enter into the domestic economy. He said his next port of call in terms of a roadshow is the Gulf States from which Nigeria hopes to secure investment especially into the refinery sector.

He said he also has eyes on another commercial roadshow to the USA where he hopes to ensure that Nigeria gets back her crude oil market in that country.

Nwokolo stated that the lawmakers were in the Ministry of Petroleum Resources to get first hand briefing on its activities, achievements, opportunities and challenges to enable the Committee know what support it can give for it to achieve greater results for the benefit of the national economy.


He further commended Kachikwu on the achievements so far recorded in the Ministry under his watch.

Read more at: http://www.vanguardngr.com/2016/12/fg-halts-investment-refineries/

I thought this APC govt have fixed the refinaries and they now work optimally. What the issue again?

Observing............

Sunnymatey:
I thought this APC govt have fixed the refinaries and they now work optimally. What the issue again?

Bro it's not about a party, we should ask for our right

Apc or Pdp is not the issue the followers need to start
Asking questions

sarrki:


Bro it's not about a party, we should ask for our right

Apc or Pdp is not the issue the followers need to start
Asking questions

My friend its a party thing ooo...it was the propaganda they used to win election

ovadozes:

My friend its a party thing ooo...it was the propaganda they used to win election

Who bear the brunt ?

The masses !!!!!!

Part of the reason I vote Buhari was his big boast to fix the refineries in 6 months because after all he built most of them in 6 months but today the man is yarning balderash..Well I already gave up on him many month ago.

sarrki:


Who bear the brunt ?

The masses !!!!!!

The masses have always been suffering it and APC said they will stop the suffering, instead of stopping it they are aggravating it, so don't tell me its not a party thing. It is ooo and will continue to be

idupaul:
Part of the reason I vote Buhari was his big boast to fix the refineries in 6 months because after all he built most of them in 6 months but today the man is yarning balderash..Well I already gave up on him many month ago.

you dey mind them ni?? Empty barrels make the loudest noise.

ovadozes:

The masses have always been suffering it and APC said they will stop the suffering, instead of stopping it they are aggravating it, so don't tell me its not a party thing. It is ooo and will continue to be

Sarrki Wan pick race..him forget say apc promise heaven and earth..



This present admin fit Don chop money via those refineries o meanwhile many olodo dey dey think say the mumu government dey work...

idupaul:
Part of the reason I vote Buhari was his big boast to fix the refineries in 6 months because after all he built most of them in 6 months but today the man is yarning balderash..Well I already gave up on him many month ago.

Likewise!

idupaul:
Part of the reason I vote Buhari was his big boast to fix the refineries in 6 months because after all he built most of them in 6 months but today the man is yarning balderash..Well I already gave up on him many month ago.

this dumbie is still one of those rodents that spread the useless lies that buhari built refineries and in 2017 the goat is still saying the same rubbish. .....Please which refineries did he build? I'm sure you don't even know ibb built refineries but yet u hate him and keep crediting this goat president with such a feat.....isn't it cleat the old thing cnt even build a single road.

bayelsaowei:


Sarrki Wan pick race..him forget say apc promise heaven and earth..



This present admin fit Don chop money via those refineries o meanwhile many olodo dey dey think say the mumu government dey work...

Abeg help me tell am

revolt:
this dumbie is still one of those rodents that spread the useless lies that buhari built refineries and in 2017 the goat is still saying the same rubbish. .....Please which refineries did he build? I'm sure you don't even know ibb built refineries but yet u hate him and keep crediting this goat president with such a feat.....isn't it cleat the old thing cnt even build a single road.

I never said Buhari built any refinery you toad, Buhari himself said so many times and not me..Now park your pork face well jare

While it's good to hear that no more money will be wasted on these refineries, why is the administration still refusing to sell them off once and for all? How exactly are they expecting private participation without a private share of ownership?

As it stands, this announcement makes no sense at all. It's time these obsolete refineries were sold off for whatever they can fetch, and the oil refining business completely opened up to private investment. Buhari would be better off pushing for the Petroleum Industry Bill to be quickly passed than flying around the world doing ... who knows what, exactly.

idupaul:


I never said Buhari built any refinery you toad, Buhari himself said so many times and not me..Now park your pork face well jare

dem don dey deny. that's how nobody agrees they supported change again. swondering whether na ghosts vote this guy

omohayek:
While it's good to hear that no more money will be wasted on these refineries, why is the administration still refusing to sell them off once and for all? How exactly are they expecting private participation without a private share of ownership?

As it stands, this announcement makes no sense at all. It's time these obsolete refineries were sold off for whatever they can fetch, and the oil refining business completely opened up to private investment. Buhari would be better off pushing for the Petroleum Industry Bill to be quickly passed than flying around the world doing ... who knows what, exactly.

Nice writeup

Anyone who cares to know ibe kachikwu's true position on the refineries should go back just before and shortly after he was appoint GMD. Kachikwu simply wants the refineries sold. But the president is standing in the way of this happening.

I'm surprised kachikwu hasn't resigned his position cos PMB is undermining his efforts.