What do u expect, when we are in zoo

Omoboricash:

Nine Reasons Why Refineries’ Rehabilitation Is Justified

Nigeria has a terrible track record in infrastructure projects fully funded by loans taken out by the federal government. Look up past history, especially in the power sector. The NNPC is too corrupt to be managing mega projects like this, that is why there is huge public opposition to this project.

Muhylonaire007:



What has Obasanjo and Jonathan done, compared to your darling daddy?
I won't find it funny if we later hear say Ipobterrorist commit suicide.

Very dumb fulk

Sense nor go kill you my brother, suicide will be their last resort.

Is this IPOBTERRORIST not the handler of ?

Racoon:
FG revamping refineries with humongous amount that what Dangote used to build his new refinery? What kind of wickedness is this for goodness sake? See them new yam eaters them cashing out while bitterly complaining of cash crunch.God will punish all of una.Ndi ala!

My main issue is with the people supporting the said project and praising Buhari as a messiah.

Auxtin85:


Sense nor go kill you my brother, suicide will be their last resort.

Is this IPOBTERRORIST not the handler of ?

Person wey dey ment

This is a crime against the Nigerian people. I sell power solutions for laptop. Over ten hours guaranteed and twenty hours possible!

During #ENDSARS when the masses began zooming in on politicians... invading their residences.... the politicians were in fear.... had little to say.... and were careful in what they had to say. After #ENDSARS...they are back and bold again.... somehow... these arrogant looters need to fear for their lives.

Buhari and cohorts are common criminals !

Such a useless bunch of self serving THIEVES!

Only a red revolt can salvage the doomed contraption!

Solution to Nigeria problems is cheap!! But our leaders will never do it!!!!

Omoboricash:

Nine Reasons Why Refineries’ Rehabilitation Is Justified

By Adewole Kehinde
Mail Express Online
Saturday, 20 March 2021

It is no longer news that the Federal Executive Council on Wednesday, 17th March, 2021 approved the sum of $1.5 billion for the rehabilitation of the Port Harcourt Refinery Company Ltd.
Unfortunately, some personalities like Former Vice President Atiku Abubakar, Gov Nyesom Wike, Activist Aisha Yesufu, Senator Dino Melaye, and Former Gov Peter Obi among others are opposing the rehabilitation/contract award. 
Below are the nine reasons why refineries’ rehabilitation is justified

1. AFTER YEARS OF NEGLECT, THE PLANTS NEED TO BE BACK

Nigeria’s three refineries in Warri, Kaduna and Port Harcourt with a combined capacity of 445,000b/d capacity were established to ensure energy security for the country. Unfortunately, these refineries have suffered years of neglect due to delays in conducting mandatory Turn Around Maintenance (TAM) that has resulted in performance decline over the past two decades and they have all been shut down to allow proper diagnosis and rehabilitation.

Of these refineries, the most strategic is the Port-Harcourt Refining Company (PHRC) with a capacity of 210,000 b/d and can produce 10.4 million liters of Premium Motor Spirit (PMS) per day. This refinery had its last TAM in the year 2000 (21 years ago).

It is gladdening therefore to see that there is finally a move on the part of government to rehabilitate the Port Harcourt refinery and restore all the numerous advantages that operating the refinery will bring to the Country. This rehabilitation, unlike TAM (which should normally be carried out every two years but was neglected for many years), will involve comprehensive repairs of the plant with significant replacement of critical equipment to ensure the plant integrity is maintained for a minimum of ten years.

2.  REHABILITATION VS BUILDING NEW REFINERIES: WHAT ECONOMICS?

Some critics have said that it is more economical to build a new refinery than “just waste US$1.5bn” to rehabilitate the PHRC, which holds 210,000bpd out of Nigeria’s 445,000bpd refining capacity. On the contrary, a cursory look at brand new refineries built across the world will reveal the following:

US$10bn was budgeted for building Aramco Oil Refinery (250,000-300,000 bpd) in Pakistan

US$12bn was budgeted for building Abrue Lima Project (230,000) in Brazil

US$27bn was budgeted for building Pengerang Refinery and Petrochemical Integrated Development, RAPID (300,000 b/d + 3 mtpa) naptha steam cracker) in Indonesia.

Closer home, US$19bn was budgeted for building Dangote Refinery (650,000bpd) in Nigeria.

3.  THE LENDER IS SMART, THE CONTRACTOR REPUTABLE

African Export-Import Bank (Afreximbank) is the reliable lender that has agreed to raise up to $1billion towards the rehabilitation project. In the same vein, Government will raise the sum of US$550m. A credible and capable lender like Afreximbank would never agree to put such huge amount of money where there will be no value.

Similarly, Tecnimont SpA, representative of the Original Refinery Builder (ORB) which is one of the top ten global Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) Contractor in refineries, is globally reputable and capable, with requisite experience of similar jobs across the globe.

4.  STRATEGIC ASSETS ARE NEVER FOR SALE

Despite the abundance of hydrocarbon resources, Nigeria is, sadly, the only oil gas producer in the world that does not refine petroleum products. Instead, the country relies heavily on importation for most of its PMS needs locally. This is not a good record to be proud of.

Armchair critics also come up with a shallow argument that it is better to sell off these refineries since they can no longer meet up the nation’s refining needs. Which country sells off its strategic national assets, such as the refineries, to the highest bidder? Who sells off their refinery when even countries who don’t produce a drop of hydrocarbon still go ahead and build refineries?

5.  THE END OF ‘BUSINESS AS USUAL’

Armchair critics usually think a mere mention of rehabilitation means another round of “business as usual”, where resources are drained with nothing to show for it at the end of the day. While some of these arguments are justifiable, it is instructive to note that this rehabilitation is different because interested parties who benefit from the age-long importation largesse (and who fleece the nation dry) will potentially be out of business by the time the rehabilitation is completed.

This is the same for critics who see nothing good in President Muhammadu Buhari’s administration. These detractors probably forgot that this was an administration which, from its inception, made clear its intention to bring back the refineries to their optimal capacities. The Buhari Presidency also threw its full weight and support behind the NNPC and gave the Corporation a free hand to execute the project without any interference in the contracting processes.

6. THE BENEFITS ARE ENORMOUS…AND ENDLESS

There are quite a number of benefits in bringing the nation’s refineries back on stream. From satisfying local energy demand, growing the nation’s GDP, to strengthening the Naira by reducing the demand for Forex to creating thousands of jobs across the value chain (crude supply, operating and maintaining the refinery, product supply etc) including several third-party contractors that will supply outsourced services or goods, the advantages are huge.

The refined products also serve as feedstock for small scale local manufacturing. The most significant and visible benefit is energy security for the country. Imagine if COVID-19 lockdown became global and Nigeria couldn’t import, it would have been a disaster as there was no capacity to refine crude in-country and as such, there would have been no products at all. That will be a true definition of disaster!

7. IT’S OPERATE & MAINTAIN (O&M) MODEL

Having learnt from the experiences of previous models, NNPC is now adopting the Operate & Maintain (O&M) Model as a strategy in the execution of the rehabilitation project, which is also one of the key lender requirements. With the O&M Strategy, the Contractor is expected to:

• Be a single point of responsibility for managing operations, maintenance and technical services within the refinery’s battery limit

• Be a credible, proven refinery operator with preferably FCC experience

• Operate and maintain the refinery efficiently to generate sufficient margins to pay back the debt

• Be Able to manage local and specialized sub-contractors

• Retain current NNPC staff, and actively support employee development to prepare for the transfer of the refinery management back to NNPC (timeline to be defined)

• NNPC will retain 100% of refinery ownership (e.g. no JV structure etc.)

• NNPC does not expect significant capital projects (e.g. upgrades, de-bottlenecking etc) during the O&M contract phase.

• NNPC’s structure and mandates outside of the refinery’s battery limits will not be impacted by the O&M strategy (e.g. PPMC).

8. THE CURIOUS CASE OF SHELL’S MARTINEZ REFINERY ‘SALE’

It is strange to hear people come up with the curious case of Shell’s sale of its Martinez Refinery in California to PBF Holding for $1.2bn “while NNPC is only rehabilitating PHRC for $1.5bn.” Perhaps, what people failed to understand is that Martinez Refinery is 105years old (built in 1916). The refinery had a major fire incident in September 1989 and it is having regulatory challenge with the Californian authorities. The relatively high cost of doing business in California, coupled with challenges with adherence to the State’s environmental regulations were factors in Shell’s decision to sell (https://www.ktvu.com/news/after-105-years-martinez-refinery-no-longer-owned-by-shell).

Also, as part of the condition of the sale agreement, Shell and PBF previously entered into a market-based crude oil supply and product off-take agreements to continue supplying Shell-branded businesses and ensuring that Shell customers continue having access to Shell-branded fields (See https://www.ogj.com/refining-processing/article/14092900/shell-finalizes-sale-of-martinez-refinery).

In a nutshell therefore, what happened between Shell and PBF was just a Management agreement packaged as a sale to manage and protect Shell’s image, hence, it can never be a fair comparison with the cost of rehabilitating an NNPC refinery or even building a new one. Putting up such argument as a defence looks like a well-choreographed attempt by groups who feel that the refineries coming on stream will not only throw them out of business, but will also threaten their long-term interests.

9.  FINALLY, AN ENTIRELY DIFFERENT APPROACH THIS TIME AROUND 

Unlike what is obtained in the past, the current refineries rehabilitation project is different for the following reasons:

a. It consists of a governance structure that includes key independent external stakeholders: Ministry of Finance, NEITI, ICRC, PENGASSAN and NUPENG. 

b.        Unlike the regular TAM, this rehabilitation will involve comprehensive repairs of the plant with significant replacement of critical equipment to ensure that the plant’s integrity is maintained for a minimum of ten years.

c.         It is funded through part-loan and part-government, with the financiers actively monitoring the execution of the project.

d.        KBR and NETCO are acting as NNPC Engineers who will be supervising the EPC contract to ensure that the project is delivered on schedule, within budget and at the right quality.
 

Oga. All this grammer for what.
If the government has all this cash why not just buy a stake in the Dangote refinery that is much bigger, has a petrochemical and fertilizer component and most importantly is just round the corner.

Is the government interested in liberalising the midstream sector or not. If you have issued licences ultimately towards establishing the private sector as a major player then why should the referee put on boots and cleats to play.

Mark this: NNPC and Dangote CANNOT swim in the same waters. ONE WILL SURELY, SURELY, SURELY DESTROY THE OTHER. And your guess is as good as mine how this will all end.

This LAZARUS contract that the government is pretending is just a conduit for corruption and and a certain waste pipe at best. Those refineries have NO FUTURE with the status quo. The problem is not the bolts and nuts of the refineries themselves but thee principles of ownership, management, vision and mission of government and Nigeria.

Omoboricash:

Nine Reasons Why Refineries’ Rehabilitation Is Justified

By Adewole Kehinde
Mail Express Online
Saturday, 20 March 2021

It is no longer news that the Federal Executive Council on Wednesday, 17th March, 2021 approved the sum of $1.5 billion for the rehabilitation of the Port Harcourt Refinery Company Ltd.
Unfortunately, some personalities like Former Vice President Atiku Abubakar, Gov Nyesom Wike, Activist Aisha Yesufu, Senator Dino Melaye, and Former Gov Peter Obi among others are opposing the rehabilitation/contract award. 
Below are the nine reasons why refineries’ rehabilitation is justified

1. AFTER YEARS OF NEGLECT, THE PLANTS NEED TO BE BACK

Nigeria’s three refineries in Warri, Kaduna and Port Harcourt with a combined capacity of 445,000b/d capacity were established to ensure energy security for the country. Unfortunately, these refineries have suffered years of neglect due to delays in conducting mandatory Turn Around Maintenance (TAM) that has resulted in performance decline over the past two decades and they have all been shut down to allow proper diagnosis and rehabilitation.

Of these refineries, the most strategic is the Port-Harcourt Refining Company (PHRC) with a capacity of 210,000 b/d and can produce 10.4 million liters of Premium Motor Spirit (PMS) per day. This refinery had its last TAM in the year 2000 (21 years ago).

It is gladdening therefore to see that there is finally a move on the part of government to rehabilitate the Port Harcourt refinery and restore all the numerous advantages that operating the refinery will bring to the Country. This rehabilitation, unlike TAM (which should normally be carried out every two years but was neglected for many years), will involve comprehensive repairs of the plant with significant replacement of critical equipment to ensure the plant integrity is maintained for a minimum of ten years.

2.  REHABILITATION VS BUILDING NEW REFINERIES: WHAT ECONOMICS?

Some critics have said that it is more economical to build a new refinery than “just waste US$1.5bn” to rehabilitate the PHRC, which holds 210,000bpd out of Nigeria’s 445,000bpd refining capacity. On the contrary, a cursory look at brand new refineries built across the world will reveal the following:

US$10bn was budgeted for building Aramco Oil Refinery (250,000-300,000 bpd) in Pakistan

US$12bn was budgeted for building Abrue Lima Project (230,000) in Brazil

US$27bn was budgeted for building Pengerang Refinery and Petrochemical Integrated Development, RAPID (300,000 b/d + 3 mtpa) naptha steam cracker) in Indonesia.

Closer home, US$19bn was budgeted for building Dangote Refinery (650,000bpd) in Nigeria.

3.  THE LENDER IS SMART, THE CONTRACTOR REPUTABLE

African Export-Import Bank (Afreximbank) is the reliable lender that has agreed to raise up to $1billion towards the rehabilitation project. In the same vein, Government will raise the sum of US$550m. A credible and capable lender like Afreximbank would never agree to put such huge amount of money where there will be no value.

Similarly, Tecnimont SpA, representative of the Original Refinery Builder (ORB) which is one of the top ten global Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) Contractor in refineries, is globally reputable and capable, with requisite experience of similar jobs across the globe.

4.  STRATEGIC ASSETS ARE NEVER FOR SALE

Despite the abundance of hydrocarbon resources, Nigeria is, sadly, the only oil gas producer in the world that does not refine petroleum products. Instead, the country relies heavily on importation for most of its PMS needs locally. This is not a good record to be proud of.

Armchair critics also come up with a shallow argument that it is better to sell off these refineries since they can no longer meet up the nation’s refining needs. Which country sells off its strategic national assets, such as the refineries, to the highest bidder? Who sells off their refinery when even countries who don’t produce a drop of hydrocarbon still go ahead and build refineries?

5.  THE END OF ‘BUSINESS AS USUAL’

Armchair critics usually think a mere mention of rehabilitation means another round of “business as usual”, where resources are drained with nothing to show for it at the end of the day. While some of these arguments are justifiable, it is instructive to note that this rehabilitation is different because interested parties who benefit from the age-long importation largesse (and who fleece the nation dry) will potentially be out of business by the time the rehabilitation is completed.

This is the same for critics who see nothing good in President Muhammadu Buhari’s administration. These detractors probably forgot that this was an administration which, from its inception, made clear its intention to bring back the refineries to their optimal capacities. The Buhari Presidency also threw its full weight and support behind the NNPC and gave the Corporation a free hand to execute the project without any interference in the contracting processes.

6. THE BENEFITS ARE ENORMOUS…AND ENDLESS

There are quite a number of benefits in bringing the nation’s refineries back on stream. From satisfying local energy demand, growing the nation’s GDP, to strengthening the Naira by reducing the demand for Forex to creating thousands of jobs across the value chain (crude supply, operating and maintaining the refinery, product supply etc) including several third-party contractors that will supply outsourced services or goods, the advantages are huge.

The refined products also serve as feedstock for small scale local manufacturing. The most significant and visible benefit is energy security for the country. Imagine if COVID-19 lockdown became global and Nigeria couldn’t import, it would have been a disaster as there was no capacity to refine crude in-country and as such, there would have been no products at all. That will be a true definition of disaster!

7. IT’S OPERATE & MAINTAIN (O&M) MODEL

Having learnt from the experiences of previous models, NNPC is now adopting the Operate & Maintain (O&M) Model as a strategy in the execution of the rehabilitation project, which is also one of the key lender requirements. With the O&M Strategy, the Contractor is expected to:

• Be a single point of responsibility for managing operations, maintenance and technical services within the refinery’s battery limit

• Be a credible, proven refinery operator with preferably FCC experience

• Operate and maintain the refinery efficiently to generate sufficient margins to pay back the debt

• Be Able to manage local and specialized sub-contractors

• Retain current NNPC staff, and actively support employee development to prepare for the transfer of the refinery management back to NNPC (timeline to be defined)

• NNPC will retain 100% of refinery ownership (e.g. no JV structure etc.)

• NNPC does not expect significant capital projects (e.g. upgrades, de-bottlenecking etc) during the O&M contract phase.

• NNPC’s structure and mandates outside of the refinery’s battery limits will not be impacted by the O&M strategy (e.g. PPMC).

8. THE CURIOUS CASE OF SHELL’S MARTINEZ REFINERY ‘SALE’

It is strange to hear people come up with the curious case of Shell’s sale of its Martinez Refinery in California to PBF Holding for $1.2bn “while NNPC is only rehabilitating PHRC for $1.5bn.” Perhaps, what people failed to understand is that Martinez Refinery is 105years old (built in 1916). The refinery had a major fire incident in September 1989 and it is having regulatory challenge with the Californian authorities. The relatively high cost of doing business in California, coupled with challenges with adherence to the State’s environmental regulations were factors in Shell’s decision to sell (https://www.ktvu.com/news/after-105-years-martinez-refinery-no-longer-owned-by-shell).

Also, as part of the condition of the sale agreement, Shell and PBF previously entered into a market-based crude oil supply and product off-take agreements to continue supplying Shell-branded businesses and ensuring that Shell customers continue having access to Shell-branded fields (See https://www.ogj.com/refining-processing/article/14092900/shell-finalizes-sale-of-martinez-refinery).

In a nutshell therefore, what happened between Shell and PBF was just a Management agreement packaged as a sale to manage and protect Shell’s image, hence, it can never be a fair comparison with the cost of rehabilitating an NNPC refinery or even building a new one. Putting up such argument as a defence looks like a well-choreographed attempt by groups who feel that the refineries coming on stream will not only throw them out of business, but will also threaten their long-term interests.

9.  FINALLY, AN ENTIRELY DIFFERENT APPROACH THIS TIME AROUND 

Unlike what is obtained in the past, the current refineries rehabilitation project is different for the following reasons:

a. It consists of a governance structure that includes key independent external stakeholders: Ministry of Finance, NEITI, ICRC, PENGASSAN and NUPENG. 

b.        Unlike the regular TAM, this rehabilitation will involve comprehensive repairs of the plant with significant replacement of critical equipment to ensure that the plant’s integrity is maintained for a minimum of ten years.

c.         It is funded through part-loan and part-government, with the financiers actively monitoring the execution of the project.

d.        KBR and NETCO are acting as NNPC Engineers who will be supervising the EPC contract to ensure that the project is delivered on schedule, within budget and at the right quality.
 

if u are reasonable u wont say this,if u are normal n u have a brain u wont say this,it pains me so dearly that u can come here n make this write up,cant u see that this government is a complete failure. May God help us

You know there was a time that government awarded a contract for.the upgrade and rehab of NITEL facilities.

Some 300billion if memory serves me right. Where is NITEL today. All we talk about today concerning are opportunities missed and funds misolaced.... And only if we had visionaries in position of authority.

In a while to come we will look back with the same regret at the monumental waste and all the good and positive things our resources could have been deployed towards.

crossfire:
if u are reasonable u wont say this,if u are normal n u have a brain u wont say this,it pains me so dearly that u can come here n make this write up,cant u see that this government is a complete failure. May God help us

They are not visionaires or at least intellectually endowed. Just opportunists, rent seekers and agents of mercantile who will not bat an eyelid if this country is sold down the river to satisfy their lusts.

What is about the NNPC that we have not heard or seen. This is an organisation that has admitted its serial failings yet we continue to throw good, scare money after them. This is an organisation that in saner climes would have been declared bankrupt and ceased to exist years ago. Yet you borrow to give them a new toy to destroy.

How can Nigerians be so docile, conned so badly financially raped. serially yet remain 'Stockholmed' to their assailants.

Monogamy:
That's only if FG would be sincere about the refineries this time.

No be today we dey here such story with no records for the money approved for the project

Even PMB's Enemies know that he,as the leader of the FG,is sincere...

oz4real83:
All those years Buhari was contesting and losing elections, he actually had no plans or ideas of how to run government . He kept losing, we never knew that God was doing us a favour until we forcefully demanded for change.

The ones that came up with a plan to revamp our National "treasures" like our Refineries,our National Electric power,have been in the oil/Electricity production and maintenance field even before your semi literate father banged your mum to birth you..

SHUT UP and get emancipated!

Islie:

• Proposed Refinery In Katsina Costs $2b, TAM For Old Facility $1.5b

• $1.5b Fresh Approval Higher Than 10-year Capital Allocation To Health

• TAM Three Times Higher Than 10-year Education Budget


https://m.guardian.ng/news/nigerias-26-5-billion-maintenance-cost-enough-to-build-three-new-refineries/

FG Spend a woopen $1.5b to maintained ph REFINERY is barbaric, foolishness, waste, lack of ideas, stupid and hopeless decision ONLY A BLIND GOVT CAN EMBARKED UPON. How much will it cost to sell out right now?? How much wil it go for after spending that amount ON MAINTENANCE ONLY?? What will it cost to build new one? For how long to complete new refinery?? A good govt will seat down with experts to arrived at COST EFFECTIVE IDEAS AS A GUIDE. MAY GOD FRUSTRATE THEIR LOOTING PLANS.

I Love PMB

Osinbajo will continue where Buhari stops because APC is winning 2023 Presidential Election... Take it to the bank.

All this could have been avoided if

1.Subsidy had been removed truthfully and deregulation had happened truthfully not the lies told by government

2.NNPC and the refineries had been privatized completely

Two things Buhari should have done in 2015, but did not.

Here we are because of addiction to cheap fuel.

Okoroawusa:
I Love PMB

Osinbajo will continue where Buhari stops because APC is winning 2023 Presidential Election... Take it to the bank.

If your beloved leader had deregulated that 23 billion would have been used for better things not for waste

oz4real83:
All those years Buhari was contesting and losing elections, he actually had no plans or ideas of how to run government . He kept losing, we never knew that God was doing us a favour until we forcefully demanded for change.

Speak for yourself.

Many of us knew.

You think it's coincidence that the area that he comes from and the area that he was military governor of are now two of the most unstable regions in the whole world?

There is a problem with how some people think and process solutions.

morgstreme:


Really

What is your qualification in the oil industry

What Projects of such scale have you been part of

USELESS juvenile hungry urchin!

Dunce ... move along ..

26bill divided by 36 will give u around 720m..share among 36 states that money will renovate all the dead govt hospitals, schools and road across the 36 states. Change go remain...

Like the arms money was use to fund 2015 campaign by @pdp, This is to fund 2023 campaign by @APC.