Please my brother, let us debate with facts and figures or at least with some logic.

What you posted above make no sense and have not been able to contradict what I said. If the daily quoted price is not the price it is sold internationally, then why is it quoted at all? It is like saying other commodities like gold, wheat, cocoa, is not really sold at the internationally quoted prices. So if oil is not sold at quoted prices, then what do we base our budget on? How do you then determine the price of crude.

You show you know nada about the international oil market and in fact international trade. The international oil market is very complex and very dirty, it is even dirtier than the drug market, the major difference is that oil markets are controlled by powerful governments and their agents.

There are two markets in international oil market - the regular market we are familiar with, which prices are quoted everyday and the spot market which is highly secretive and prices are determined arbitrarily. This is where a lot of shady things happen. Then there is the large oil theft/smuggling market, which to a large extent is responsible for the usual instability in oil producing countries.

I suspect that most international refineries source oil from legal and illegal sources to post profit in a shorter time than it would be possible with only legal option.

I also suspect that most refineries in west Africa and some European countries were set up to feed on oil stolen from Nigeria or at best oil bought at spot prices.

Have u gone through the link i pasted? especially the first one which is short and precise enough. I am not here to make anyone look wrong but to reason and see how this idea can ever be achieved.
In ur post u didnt mention where the refineries that operate on large scale get profits from. the main difference i see is between their profitability come from their "Economy of scale".
According to the second link there (Though quite long) the govt will make more profit if the crude is sold at international market value however the idea of SMSEs refinery is still tempting when u look at its potential to decentralize our cabals and create job as well as completion.
May be u need to look up how oil drilling is handled in Nigeria also.

As for u claim about me knowing nothing about international oil market, the ultimate aim of the politics of the market is to maximize profits, i believe the Nigerian Govt should be ready to sacrifice oil profits for the sake of its populace having a strong economy and transparency on the long run.

You agree that at small and medium scale, refineries are not profitable if the crude is bought at prevailing international prices.

Yes large refineries can be profitable in the long run when one considers the economy of scale, but the refinery has to be operated optimally and with a favourable tax and licensing regime.

The main problem I see in Nigeria is incompetence, if the government cannot tackle corruption in subsidizing fuel, I doubt they would be able to tackle corruption in subsidizing crude.

paragonpro:

You agree that at small and medium scale, refineries are not profitable if the crude is bought at prevailing international prices.

Yes large refineries can be profitable in the long run when one considers the economy of scale, but the refinery has to be operated optimally and with a favourable tax and licensing regime.

The main problem I see in Nigeria is incompetence, if the government cannot tackle corruption in subsidizing fuel, I doubt they would be able to tackle corruption in subsidizing crude.

the idea here is to counter the highlighted effects of govt, if only the govt can allow the crude be processed by SMSEs the second link i pasted there clearly states that local crude meant for internal usage is totally free.
The only cost we shld be burdened with is that of getting it refined and back to the pumps.

Sorry can not see the other site now as I am using a mobile phone and the service is crawlingly slow. But one fact is that the government or nnpc sells. Crude to the refineries at prevailing international price, that was what the GMD of NNPC said during the senate hearings.

Hmmm . . . . Visionary stuff we have here. Today there are modular refineries being built.