Port Harcourt Refineries are expected to work optimally from October this year after a Turn-Around Maintenance (TAM), the NNPC has announced. Group Executive Director, Refining and Petrochemicals, Engr Philip Chukwu, said this in Port Harcourt recently during an inspection of the refineries with officials of Maire Tecnimont, the contractors which the Federal Government engaged for the TAM. Chukwu, who decried the lack of maintenance of the twin Port Harcourt refineries in the last 12 years, commended the Federal Government for engaging the original constructors of the refineries for the TAM, the Chiyoda Group of Japan. "Everyone knows that the refineries have not been properly maintained over the years and we have had to manage things. What we are doing now is to have the TAM and complete rehabilitation of the refineries by the original contractors," he said. The two Port Harcourt refineries, which consist of the old refinery with capacity to process 60, 000 b/d and 150, 000 b/d, respectively, had been functioning at low capacity with the old one not working at the moment because of lack of maintenance. Chukwu explained that the TAM, which would start in October, would require a total shutdown of the plants for between 45 days and 60 days to ensure a thorough job. He said the TAM and rehabilitation process would also entail overhauling the supply chain and pipelines that bring crude oil and capacity building for staff so as to meet international best practice. He said the NNPC was also working with all stakeholders, including security operatives, to ensure the pipelines were safe and no longer vandalised. PHRC Managing Director, Engr Anthony U. Ogbuigwe, in his remarks after taking the contractors round the plants expressed optimism that the refinery would begin to work at 90 per cent capacity by November this year. He said preliminary work on the TAM started since late 2010 and the present stage would signal the return to full production of the refineries. He said that the NNPC had already placed order for all the equipment necessary for the TAM, noting that the inspection by the management of the construction company would help to fast-track the whole process. Managing Director, Maire Tecnimont Group of Italy, Mr Roberto Bertocco, said in his remarks that the company which had been on ground in Nigeria for the past 30 years would be working with JGC Engineering, Japan, original builders of the refinery. "I can assure you of a very good job on this project. We have been working with JGC in many parts of the world, so we are also collaborating with them on this project because we have been on ground in Nigeria for the past 30 years," he said. He expressed optimism that the refineries would be working at full capacity by the end of the year. It would be recalled that the old Port Harcourt refinery was built in 1965 with an initial capacity of 35,000 b/d which was later expanded to 60,000 bpd in 1972. The new wing of the refinery was built in 1989 with a 150,000 b/d capacity to meet local consumption of petroleum products and for export.A Memorandum of Understanding (MoU) is expected to be signed between the management of Maire Tecnimont, the Minister of Petroleum Resources, Mrs Dieziani Allison-Madueke and NNPC officials in Abuja.

dayokanu: When you think retardeens govt cant get worse, It actually does

Kobojunkie: Greenfield Refineries: Funding, FG’s Approval Stall New Take-off Date

http://www.thisdaylive.com/articles/greenfield-refineries-funding-fg-s-approval-stall-new-take-off-date/119712/


There are indications that the much-awaited three Greenfield Refineries billed for Lagos, Bayelsa and Kogi States, scheduled to come on stream by 2017 may not be realizable.

This, it was gathered, is because the construction earlier planned to begin this month has been put on hold due to the Nigerian National Petroleum Corporation’s (NNPC’s) inability to secure Federal Government’s approval to commence work.
THISDAY checks revaled that the NNPC, which is to provide 20 per cent of the amount budgeted for the project is still planning to put together a consortium for the purpose of raising the funds.

The NNPC and the China State Construction Engineering Corporation (CSCEC) Limited had in 2010 signed a Memorandum of Understanding (MoU) for the joint sourcing of funds for the construction of three new refineries and a petrochemical plant in Nigeria under a $28.5-billion provisional deal.

The project had been envisaged to increase Nigeria’s refining capacity to over one million barrels per day (bpd) from the current 445,000 bpd capacity and stem the flood of importation of refined products into the country.
The parties had fixed (this month as the new date for the commencement of construction, following the NNPC’s inability to meet the May 13, 2011 date.

Front End Engineering and Design (FEED), site preparation and infrastructure had been scheduled to start in February 2012 to be followed by construction works this month of July.

Under the agreement, the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, was to provide 80 per cent of the $11.3 billion budgeted for the project, while the NNPC will provide 20 per cent equity, to be diluted for private sector participation later.

However, a source familiar with the project told THISDAY yesterday that the project will no longer come on stream as earlier planned because the NNPC is still awaiting Federal Government’s approval to begin construction. The source said aside from the delay in securing government’s approval to begin construction, two other major challenges were the issue of funding and the delay by the National Refinery Special Task Force to submit the report of its findings on the traditional refineries, located in Warri, Kaduna and Port Harcourt.

Commenting on the project, the General Manager at the NNPC’s Group Public Affairs department, Mr. Fidel Pepple, told THISDAY that the Final Investment Decision (FID) had been completed and soil analysis revealed that the project is viable.
He explained that commencement of construction could not take-off as scheduled because the NNPC is still awaiting government’s approval.

On the issue of funding, Pepple confirmed that NNPC plans to float a consortium to enable it raise enough funds for the project.
He said: “The issue of funding is not a problem. What we are waiting for is federal government’s approval to commence construction, once that is done, we will put together a consortium to raise the funds, as the NNPC alone cannot do it”.

The initial plan was that each of the Greenfield Refineries would be able to process around 250,000 barrels of oil a day, but their combined capacity was later downsized to 400,000 barrels per day. Under the new arrangement, the capacities of the plants to be built in Kogi and Bayelsa were reduced to 100,000 barrels per day (bpd) each, while the one to be located in Lagos, will now have the capacity for 200,000 bpd.

THISDAY gathered that the capacities of the plants were downsized based on the new Detailed Feasibility Study (DFS) prepared by Wood Makenzie & Foster Will.

The NNPC had repeatedly stated that the new refineries, when completed, would help to eliminate the country’s current reliance on imported petroleum products and position it (NNPC) to engage profitably in the international trading of refined petroleum products.
The delay in its take-off is considered a major setback to Nigeria’s plan to increase her refining capacity to over one million barrels per day by 2017.

Kobojunkie: Greenfield Refineries: Funding, FG’s Approval Stall New Take-off Date

http://www.thisdaylive.com/articles/greenfield-refineries-funding-fg-s-approval-stall-new-take-off-date/119712/


There are indications that the much-awaited three Greenfield Refineries billed for Lagos, Bayelsa and Kogi States, scheduled to come on stream by 2017 may not be realizable.

This, it was gathered, is because the construction earlier planned to begin this month has been put on hold due to the Nigerian National Petroleum Corporation’s (NNPC’s) inability to secure Federal Government’s approval to commence work.
THISDAY checks revaled that the NNPC, which is to provide 20 per cent of the amount budgeted for the project is still planning to put together a consortium for the purpose of raising the funds.

The NNPC and the China State Construction Engineering Corporation (CSCEC) Limited had in 2010 signed a Memorandum of Understanding (MoU) for the joint sourcing of funds for the construction of three new refineries and a petrochemical plant in Nigeria under a $28.5-billion provisional deal.

The project had been envisaged to increase Nigeria’s refining capacity to over one million barrels per day (bpd) from the current 445,000 bpd capacity and stem the flood of importation of refined products into the country.
The parties had fixed (this month as the new date for the commencement of construction, following the NNPC’s inability to meet the May 13, 2011 date.

Front End Engineering and Design (FEED), site preparation and infrastructure had been scheduled to start in February 2012 to be followed by construction works this month of July.

Under the agreement, the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, was to provide 80 per cent of the $11.3 billion budgeted for the project, while the NNPC will provide 20 per cent equity, to be diluted for private sector participation later.

However, a source familiar with the project told THISDAY yesterday that the project will no longer come on stream as earlier planned because the NNPC is still awaiting Federal Government’s approval to begin construction. The source said aside from the delay in securing government’s approval to begin construction, two other major challenges were the issue of funding and the delay by the National Refinery Special Task Force to submit the report of its findings on the traditional refineries, located in Warri, Kaduna and Port Harcourt.

Commenting on the project, the General Manager at the NNPC’s Group Public Affairs department, Mr. Fidel Pepple, told THISDAY that the Final Investment Decision (FID) had been completed and soil analysis revealed that the project is viable.
He explained that commencement of construction could not take-off as scheduled because the NNPC is still awaiting government’s approval.

On the issue of funding, Pepple confirmed that NNPC plans to float a consortium to enable it raise enough funds for the project.
He said: “The issue of funding is not a problem. What we are waiting for is federal government’s approval to commence construction, once that is done, we will put together a consortium to raise the funds, as the NNPC alone cannot do it”.

The initial plan was that each of the Greenfield Refineries would be able to process around 250,000 barrels of oil a day, but their combined capacity was later downsized to 400,000 barrels per day. Under the new arrangement, the capacities of the plants to be built in Kogi and Bayelsa were reduced to 100,000 barrels per day (bpd) each, while the one to be located in Lagos, will now have the capacity for 200,000 bpd.

THISDAY gathered that the capacities of the plants were downsized based on the new Detailed Feasibility Study (DFS) prepared by Wood Makenzie & Foster Will.

The NNPC had repeatedly stated that the new refineries, when completed, would help to eliminate the country’s current reliance on imported petroleum products and position it (NNPC) to engage profitably in the international trading of refined petroleum products.
The delay in its take-off is considered a major setback to Nigeria’s plan to increase her refining capacity to over one million barrels per day by 2017.

13. With regards to the 445,000 bpd allocation to NNPC , the Committee believes that with the current refining capacity of 53% and the SWAP/Offshore processing arrangement of the balance of 47%, it is sufficient to provide the nation with the following products:
a. 40 Million Litres Per Day (MLPD) of PMS,
b. 10 MLPD of Kerosene (HHK)
c. 8.97 MLPD of Diesel (AGO) ,
d. 0.62 MLPD of LPG and
e. 2.31 MLPD of FO
It is only AGO whose average daily consumption of 12 million Litres per day will not be achieved in full. Since AGO has been deregulated, other marketers can make up for the 3.03 MLPD AGO shortfalls. The implication of this finding is that if NNPC properly manages the allocation of 445 bpd efficiently, the availability of the products can be achieved by the NNPC alone. This contrasts the situation where in 2009-2011 NNPC got the daily allocation of 445,000bpd and the nation still had to import through Marketers.
Curiously, although NNPC confirmed that it makes some savings of about =N= 11.00 per litre refining locally than import, it could not be established that the Corporation reflects this cost differential in its claims to subsidy.
The Committee recommends

Kobojunkie: Greenfield Refineries: Funding, FG’s Approval Stall New Take-off Date

http://www.thisdaylive.com/articles/greenfield-refineries-funding-fg-s-approval-stall-new-take-off-date/119712/


There are indications that the much-awaited three Greenfield Refineries billed for Lagos, Bayelsa and Kogi States, scheduled to come on stream by 2017 may not be realizable.

This, it was gathered, is because the construction earlier planned to begin this month has been put on hold due to the Nigerian National Petroleum Corporation’s (NNPC’s) inability to secure Federal Government’s approval to commence work.
THISDAY checks revaled that the NNPC, which is to provide 20 per cent of the amount budgeted for the project is still planning to put together a consortium for the purpose of raising the funds.

The NNPC and the China State Construction Engineering Corporation (CSCEC) Limited had in 2010 signed a Memorandum of Understanding (MoU) for the joint sourcing of funds for the construction of three new refineries and a petrochemical plant in Nigeria under a $28.5-billion provisional deal.

The project had been envisaged to increase Nigeria’s refining capacity to over one million barrels per day (bpd) from the current 445,000 bpd capacity and stem the flood of importation of refined products into the country.
The parties had fixed (this month as the new date for the commencement of construction, following the NNPC’s inability to meet the May 13, 2011 date.

Front End Engineering and Design (FEED), site preparation and infrastructure had been scheduled to start in February 2012 to be followed by construction works this month of July.

Under the agreement, the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, was to provide 80 per cent of the $11.3 billion budgeted for the project, while the NNPC will provide 20 per cent equity, to be diluted for private sector participation later.

However, a source familiar with the project told THISDAY yesterday that the project will no longer come on stream as earlier planned because the NNPC is still awaiting Federal Government’s approval to begin construction. The source said aside from the delay in securing government’s approval to begin construction, two other major challenges were the issue of funding and the delay by the National Refinery Special Task Force to submit the report of its findings on the traditional refineries, located in Warri, Kaduna and Port Harcourt.

Commenting on the project, the General Manager at the NNPC’s Group Public Affairs department, Mr. Fidel Pepple, told THISDAY that the Final Investment Decision (FID) had been completed and soil analysis revealed that the project is viable.
He explained that commencement of construction could not take-off as scheduled because the NNPC is still awaiting government’s approval.

On the issue of funding, Pepple confirmed that NNPC plans to float a consortium to enable it raise enough funds for the project.
He said: “The issue of funding is not a problem. What we are waiting for is federal government’s approval to commence construction, once that is done, we will put together a consortium to raise the funds, as the NNPC alone cannot do it”.

The initial plan was that each of the Greenfield Refineries would be able to process around 250,000 barrels of oil a day, but their combined capacity was later downsized to 400,000 barrels per day. Under the new arrangement, the capacities of the plants to be built in Kogi and Bayelsa were reduced to 100,000 barrels per day (bpd) each, while the one to be located in Lagos, will now have the capacity for 200,000 bpd.

THISDAY gathered that the capacities of the plants were downsized based on the new Detailed Feasibility Study (DFS) prepared by Wood Makenzie & Foster Will.

The NNPC had repeatedly stated that the new refineries, when completed, would help to eliminate the country’s current reliance on imported petroleum products and position it (NNPC) to engage profitably in the international trading of refined petroleum products.
The delay in its take-off is considered a major setback to Nigeria’s plan to increase her refining capacity to over one million barrels per day by 2017.

Gbawe:

My brother, what does this report convey if not a directly damning indictment of another colossal GEJ failure in a critical sector ?

The NNPC was given the task of reviving our refineries within 24 months even as the raving lunatic in the Streets shouted that this was an insane thing for Mr. President to do!!!! Why, even if GEJ wishes to defy logic with his crazy action, is anyone surprised the NNPC now only delivers failure? Over to you 40 laptop crew .

onatisi: DONT WORRY WE ARE ON TOP OF THE SITUATION AND BY THE WAY I DONT GIVE A DAMM

bakila:
Is that forty laptop thing true? Come to thing of it each laptop will go for about two million naira.

On the topic, this Goverment does not care. Next year campaign will start and they will create varoius dramas to distract us. Only a small percentage of Nigerian pay attention to topics like these. Most are thinking of how to make money out of a pathetic situation. It matters less if the situation becomes worse.

BlackBaron: Jonathan should stop making promises he can never deliver.

Everyday, he strikes new lows yet his army of supporters would still throng here trying to justify the situation

BlackBaron: Jonathan should stop making promises he can never deliver.

Everyday, he strikes new lows yet his army of supporters would still throng here trying to justify the situation

blacksta: When is the house going to impeach this president, people are dying in the north, Anti people policies is gradually killing the public.