₦airaland Forum

jpphilips:
Look no further;


Caught the evil soul on another thread, read this;





A cracked soul with this mindset you expect will answer those legitimate questions you asked?
think again, his mission here is basically to protect Madueke and Iweala, nothing more, took a peep once in a while I was away but too busy to respond BTW I like that FinBank analogy.

To believe that evil souls divested a $2.1b interest for $300m, is the height of robbery on the Nigerian state.

ohzee:
I was one of the people waiting for jp to open this new thread hoping it will make front page.
Unfortunately it is unlikely to do so because it is soooo full of insults. It's really sad.

However the subsidy debate appears to have died down again because fuel scarcity has ended temporarily. Maybe with a new round of scarcity we will debate more civilly.

Let's take it easy people.

Aura2:
Are you aware of Nigeria's swap crude agreement? read about it sometime ago where does that crude come from?
Can't we use that source for our local production capacity?

kaboninc:
I will say it is a time bomb, ticking slowly.

The faster this administration acts, the better for all of us.

jpphilips:
The better for your dumb soul not all of us

kaboninc:
Do you know what Yorubas call egbee?

You run when the heat is on. Only to return as a terrorists.

Hmmmm.

Just not in the mood to respond to your insults. I've sized you and noted your faults. Rather than accepting, you throw insults, insults you can't match.

Until such a time when you're ready for a robust debate, with facts to back up claims, without distorting positions of important individuals, then we can't walk on same road.

Hope you've seen the "supposed" recommendations of the Joda committee on subsidy removal, refineries privatisation, NPDC review and NNPC overhauling all subject of our disagreements?

jpphilips:
I cannot have a robust debate with you because as far as subsidy removal is concerned, you have no plan let alone one that will not work, outright removal is no plan, now get lost!!

I saw your allegations on alternate Moniker, I couldn't help but size your IQ. An IQ that is bereft of ideas however small can only think of alternate monikers, does mine look that way to you? you are not even scared!!

kaboninc:
I may not have ideas but the one you profess to have, they are [b]foolis.h words not even worth labeling a foo.lish idea[/b].

ohzee:
I was one of the people waiting for jp to open this new thread hoping it will make front page.
Unfortunately it is unlikely to do so because it is soooo full of insults. It's really sad.

However the subsidy debate appears to have died down again because fuel scarcity has ended temporarily. Maybe with a new round of scarcity we will debate more civilly.

Let's take it easy people.

jpphilips:
Subsidy in Nigeria has become our most controversial economic reality, without an introduction, Subsidy interference (partial withdrawal, total withdrawal and continuity) has proved beyond doubt to be fatal to the Nigerian people.

Arguments from all quarters over the years from the government and the media, leave a lot of holes that one could hardly make a comprehensive analysis of why each step was taken, ie if we could bifurcate the lies from the reality.

Personally, the only viable solution I could phantom is a restructure of critical areas of our Economy that will not necessitate a removal of subsidy but will render subsidy irrelevant, rightly put, subsidy phasing out. With a government enthroned on the platform of sincerity of purpose, Nigerians may want to consider the following strategy;

Phase 1:


Probe and forensic auditing of the existing subsidy regimen;

This is necessary to curb the inefficiencies in the system, recently, the Nigerian Failed Ex Minister for Finance paid "FOREX differential" as part of the subsidy regimen amongst other inefficiencies, that is so wrong to say the least. Even when the CBN issue FOREX to importers at the interbank exchange rate, yet we have to pay for the differential?
I admit there was an economic need to devalue the naira, the only justification for that payment was that relevant stakeholders were not carried along including those importers.
This is the latest inefficiency in the subsidy regimen, who knows what else is there? In 2012 it was revealed that storage of pet. products forms part of our subsidy and I ask why?
the answers didn't really add up because I have personally perused the DPR guideline for issuance of such license and storage is an integral part of it, how people without storage capacity, or people who rent storage facilities were issued those license, is where the audit will do the needful.
Issue of port delays to attract demurrage, import waivers, racketeering and other unscrupulous activities, NNPC subsidized products sold to Private depot owners at higher prices etc. I am convinced that a thorough fix in this area will save us about 15% of our current subsidy expenditure. Duration: (3 months)


Phase 2:

Power:[color=#000099]

[color=#000099]You cannot touch subsidy without fixing power, since both are a function of each other both in sustainability and cost, since the FG does not have the cash to execute a comprehensive power approach, then, Prof. Osibanjo's balkanization of the National grid comes in handy here.
During the process of restructuring Nigeria's transmission infrastructure, preference should be given to towns with high population density, it is estimated that a Nigerian home, consumes an average of 45l of petroleum products in 24hrs, therefore, If the number of homes per city could be estimated as 1/3 of the population of that city,

then Lagos [13.4m people/2.5m homes (2010 figures)], Kano (1.2m homes ), Abuja (900,000 homes), Ibadan (765,000 homes), Kaduna (500,000 homes) , Portharcourt (900,000), Aba (400,000), ogbomosho (360,000 homes), Maiduguri (359,100 homes), Benin (340,000), Zaria (300,000) and Jos (305,000) should receive a minimum of 17hrs electricity daily, balanced 9hrs during the day and 6hrs in the night, subsidy is expected to reduce between 25-30%. Already, Lagos, Abuja, Portharcourt, Aba and Benin all have existing IPPs, with 45% of subsidy receipt gone, then we go to phase 3 (duration: one and half years)


Phase 3:


Trade off Kerosene:

There are a whole lot of intrigues surrounding the Nigerian Subsidy regimen on Kerosene, a plethora of Kerosene explosions and the 2012 incident when the FG announced the removal of fuel subsidy surprisingly, price of air travel doubled, it raised some legitimate questions if the Nigerian kerosene regimen subsidizes the Aviation industry and I ask why?

The downtrodden who are supposed to be the legitimate beneficiary of kerosene subsidy, hardly have the means to patronize the gas stations for the product, hence they rely on the surface tank retailers or the hawkers, at what price do they get it? just ask around and confirm.

The truth is this; Kerosene subsidy ends at the NNPC mega station, if you are lucky.
Then the airlines who are the major bulk buyers cart it away and the distributors are glad selling to them for quick money, so the surface tank operators get from the private tank farm owners who get from the importers at an unsubsidized rate, hence the distribution chain of kerosene, from Importer to the consumer is a huge fraud that doesn't need to be fixed, so why do we sustain it?

Air travel is a luxury so anyone who wish to embark on such luxury should be ready to pay for it, based on this assessment, Kerosene subsidy does not benefit anyone, except the aviation industry, if manufacturing industries could give up their AGO subsidy, why not Aviation? this move will reduce subsidy by 20%. (duration: 2 weeks consultations with relevant stakeholders) With 65% of subsidy gone,


Phase 4


Lean Government and Restructure of NPDC: It is only fair that Allison Madueke is arrested and charged for treason for crimes against the Nigerian people, NPDC by proxy. According to PENGASSEN, NPDC produces 170,000bopd, a figure I doubt seriously because by the end of 2013, NPDC is struggling to produce 90,000bopd, considering the mess Madueke made in the industry with her fraudulent indigenisation policy, I will give NPDC a fair 130,000bopd estimate for the sake of this analysis.

All the oil blocks, production platforms, Marginal wells diverted, sold or on lease by madueke including the recently divested SPDC interests should be returned to NPDC with immediate effect.
Buhari must recall the PIB from the Senate and strike off all the fraud there in and make the following changes;

*NPDC oil production will no longer be part of the Nigerian JV oil controlled by senate approved budgetary benchmark. By so doing, the senate must accept a lean government structure, that will cause a significant drop in government revenue (temporarily) but with a reduced recurrent expenditure, it is workable.

* NPDC operatorship license Must be revoked; NPDC will enter a fresh operatorship agreement with a company that qualifies with a track record of managing oil and gas production facilities. Agreement should be one that gives room for NNPC/operator expansion of production output.

* PRCN, WRCN and KRCN will have their operatorship Licence revoked, NNPC will award operatorship license to qualified refining companies to manage her operations, agreement should be one that gives room for operator/NNPC expansion of refining output.

* All the operators of NPDC, WRCN, PRCN and KRCN will be required to inherit their existing staff, train and deploy them and kindly lay off the unproductive ones to maximize efficiency.

* Export Prohibition law for NPDC output except as refined products

* Diversion of Petroleum products must attract a life sentence with no option of fine.

* Workman compensation for oil and gas workers ( a clear sharing formula for personnel charge between the contractor and the employee), an implementation agency must be enshrined in the PIB (to avoid union wahala)

Phase 5

Rebasing the NPDC production:

It is expected that the NPDC oil output is rebased, since the existing 130,000bopd of NPDC oil has been detached from the JV oil and SPDC interest divested, there is need to revalue the NPDC oil, starting from cost of production to logistics, that cost will be less than the international crude price, when fed to the refinery, the refining cost is borne by the trio RCN, I expect such products to be less than 87naira per liter.

Phase 6

Turn around Maintenance of all the refineries,


after which two different sources of petroleum products will exist in the country;

1) The trio RCN products
2) Imported Govt subsidized products,

With product 1 cheaper than product 2, interest will shift from 2 to 1 and subsidy will drop to 5%. As NPDC output grows, it is expected that new private refineries will come on board to utilize the new output that will further increase the RCN output and subsidy will die a natural death.

Some of the phases can run concurrently depending on how fast the Government desire results. Any government that attempts a total withdrawal in one day will end up clueless like her predecessor.
Subsidy removal requires a blueprint that will be followed over a period of time.
cc Moderators for FP attention
cc Vulcan

jpphilips:
That is the point, you are bereft of ideas that qualifies you as dumb!!

People like you said Jonathan was clueless when he proposed outright removal of subsidy, I equally called him clueless for doing so, the difference between you and I is that I branded him clueless because I had a clue, on your part, what do you have? "clueless" won't you say??

Now tell me, what is the difference between you and Jonathan if you were at the helm of affairs?

mandarin:
I am seriously opposed to subsidy removal.But let me state that your position isn't bad either. Taken that all your stated reforms are excited but I will state my position:
Before we can attain 100% local production of all our petroleum products consumption it will be at least 24 months if we start today, this is because the technology to do it isn't domiciled within our country.
Also, one critical factor to import cost of products is the exchange rate to the dollar. The current mangers of out MPR are to me, have not demostrated sufficient knowledge of the game. Devaluing the naira is criminal why those economic hawks responsible for such have not been put behind bars.
Removing subsidy is making the populace pay for the inefficiencies of government over the years.
Before you can deregulate, get new refineries on stream, sell crude to them at prices below the international market and grow the domestic consumption market by ensuring more consumers are built. The future of Nigeria lies in building its own domestic market which has hundreds of billions in gaps.
What about the gas market. Generating electricity through gas and growing industrial and domestic consumptions is the way forward. We are a weak party in international negotiations but if we have a thriving local market we will become strong.
So what is the way forward: quickly reform the CBN, I mean now to be responsive to current challenges and seek to build the domestic market.

jpphilips:
I really don't see it that way, every good national policy will definitely jeopardize the interest of the hawks of failure. So you will never know whose interest has been barking on the thread to derail it, nevertheless, Aura has promised to recommend it, who knows, someone in Government may listen and Nigerians will be better off with that, that in my opinion is the bottom line.

Probe and forensic auditing of the existing subsidy regimen;

This is necessary to curb the inefficiencies in the system, recently, the Nigerian Failed Ex Minister for Finance paid "FOREX differential" as part of the subsidy regimen amongst other inefficiencies, that is so wrong to say the least. Even when the CBN issue FOREX to importers at the interbank exchange rate, yet we have to pay for the differential?
I admit there was an economic need to devalue the naira, the only justification for that payment was that relevant stakeholders were not carried along including those importers.
This is the latest inefficiency in the subsidy regimen, who knows what else is there? In 2012 it was revealed that storage of pet. products forms part of our subsidy and I ask why?
the answers didn't really add up because I have personally perused the DPR guideline for issuance of such license and storage is an integral part of it, how people without storage capacity, or people who rent storage facilities were issued those license, is where the audit will do the needful.
Issue of port delays to attract demurrage, import waivers, racketeering and other unscrupulous activities, NNPC subsidized products sold to Private depot owners at higher prices etc. I am convinced that a thorough fix in this area will save us about 15% of our current subsidy expenditure. Duration: (3 months)

atlwireles:
Kabonic, if I were you I will forget this thread. Your point has been clearly made, don't allow ediots draw you to their levels.

kaboninc:
I have never at any time made such a remark. You have as you have admitted.

I'll say it again: I may not have ideas but the rub.bish you profess can't hold water.

mandarin:
I am seriously opposed to subsidy removal.But let me state that your position isn't bad either. Taken that all your stated reforms are excited but I will state my position:
Before we can attain 100% local production of all our petroleum products consumption it will be at least 24 months if we start today, this is because the technology to do it isn't domiciled within our country.
Also, one critical factor to import cost of products is the exchange rate to the dollar. The current mangers of out MPR are to me, have not demostrated sufficient knowledge of the game. Devaluing the naira is criminal why those economic hawks responsible for such have not been put behind bars.
Removing subsidy is making the populace pay for the inefficiencies of government over the years.
Before you can deregulate, get new refineries on stream, sell crude to them at prices below the international market and grow the domestic consumption market by ensuring more consumers are built. The future of Nigeria lies in building its own domestic market which has hundreds of billions in gaps.
What about the gas market. Generating electricity through gas and growing industrial and domestic consumptions is the way forward. We are a weak party in international negotiations but if we have a thriving local market we will become strong.
So what is the way forward: quickly reform the CBN, I mean now to be responsive to current challenges and seek to build the domestic market.

jpphilips:
You still don't have any ideas uptill now? so what are you doing here?
This thread is for people who have got the ideas, can you open your own thread and continue with your buffoonery pls!!
I won't ask you nicely again.

netotse:
http://africaoilgasreport.com/2015/06/petroleum-people/okoye-is-ceo-of-neconde/

since a lot of this thread was spent analysing Neconde thought this would be interesting...lol

Okoye is CEO of Neconde
SECTION: PETROLEUM PEOPLE · JUNE 30, 2015 ·
NO COMMENTS | TAGS: FEATURED
With operatorship in hand, Malije Okoye has
his work cut out: doubling production from
average 11, 709BOPD in 2015 to 23,000BOPD by
mid-2016.
Malije Okoye, former Manager of Deepwater
Engineering and Asset Support at Shell Nigeria, is
the new CEO of Neconde, the Nigerian E&P firm.
Mr. Okoye was hired from Execution Edge Ltd, an
oil and gas advisory and management consulting
firm where he worked for four months after he
elected early retirement from Shell in November
2014.
A graduate of Mechanical Engineering from the
University of Benin, Okoye attended the Advanced
Management Programme of the Wharton School
at the University of Pennsylvania in 2006.
He takes over Neconde at a time the company has
been granted operatorship of the Oil Mining Lease
(OML) 42. Neconde was incorporated as an E&P
company in November 2010, for the purpose of
purchasing the 45% stake belonging to Shell,
TOTAL and ENI, in OML 42. Equity holders in the
company at the conclusion of the transaction in
2012 included the Polish minnow Kulczyk Oil
Ventures Inc, the Nigerian junior Yinka Folawiyo
and the Nigerian EPC contractor Nestoil, which
owns the bulk of the company.
OML 42 is an 814 square kilometre tract originally
awarded in 1962. Initial production commenced in
1969 and aggregate output from the acreage’s five
producing fields reached a peak of approximately
250,000 barrels of oil equivalent per day (“BOEPD”)
in the 1970’s. Production, which was primarily oil,
continued until the first part of 2005 when the
producers were shut-in due to security issues in
the Niger Delta area. Production at the time of the
shut-in was more than 50,000 barrels of oil per
day (“BOPD”) and more than 80 million cubic feet
per day (“MMcf/d”) of natural gas. Average
production in 2011 was 15,000BOPD.
“The sales process for OML 42 started in late 2010
and during the first part of 2011 one of the fields
within the license area was put on-stream
resulting in production from OML 42 of
approximately 15,000 BOPD”, Kulczyk Oil reported
at the time. Neconde had complained, all through
the last four years, that if it had been granted
operatorship of the asset, it would have done a
better job than the state owned NPDC. Last year’s
average production for OML 42 was 7,100BOPD.
Average production this year to the last day of the
month of May was 11, 709BOPD.
The May 2015 reversal of operatorship from NPDC
to Neconde is an opportunity for the company to
prove its mettle. This is about the first real test for
Nigerian indies to show that Seplat is not a freak
occurrence.

netotse:
Chairmain...you're coming across as a proud person, granted, it's easy to see that you're knowledgeable in some areas but you still make some funny mistakes that out you as not being as rounded as you seem to potray yourself as being.

jpphilips:
I opened this thread for a reason and your pseudo innate behaviour has derailed that objective.
Of what use are you here since you have no ideas how to remove subsidy?
You are fast becoming a nuisance, watch it!!

jpphilips:
I opened this thread for a reason and your pseudo innate behaviour has derailed that objective.
Of what use are you here since you have no ideas how to remove subsidy?
You are fast becoming a nuisance, watch it!!

Aura2:
You must have confused him for Kabnoninc

kaboninc:
I will say it is a time bomb, ticking slowly.

The faster this administration acts, the better for all of us.

kaboninc:
I have never at any time made such a remark. You have as you have admitted.

I'll say it again: I may not have ideas but the rub.bish you profess can't hold water.

Phase 1: You may not know what you are up against (Trust me) and I see no possibility in Buhari achieving it.

Phase 2: Brilliant on paper but implementation?

Phase 3: The cabals will rise up against you and instigate the masses. Expect labour strikes and that will mark the beginning of the end.

Phase 4: You will need to amend existing laws. Trust me the "cabals" and friends of the cabals in the NASS will never allow it happen even in the next 5years
Phase5***

Phase 6: The previouse phases will have negative effect on phase 6

What we need is system restructuring not all these tactics that are Dead on Arrival.

Thanks

@jpphilips

I don't like back and forth argument. You don't know what you are saying if you think Buhari has integrity or he is serious. Someone that can't even declare his asset. You are also on a long thing if you think the cabals will allow "Phase 1"

For you to say Obj will "blackmail" NASS members shows that you are ignorant of the political workings of Nigeria.

For your "Osinbade is building it" claim, I laugh at you. Nigeria has lots of briliant plans on PAPER since the time of Gowon but implementation is another thing. I'm not thrilled by brilliant proposals on paper but by executing brilliant policies.

You should know the difference between system restructuring and policy overhaul. In system restructuring I mean the adoption of "True Fiscal and Regional Federalism" not policy overhaul that are usually Dead on Arrival within the present system.

You are banking 90% on assumption, this isn't a good way to plan.

Fyi: Buhari is a product of the cabals. Don't worry, you will soon come to terms.


I'm done bro...

jpphilips:
President Mohammed Buhari through the GMD of NNPC has commenced the implementation of phase 1, 4 and 6.
You are free to hang by your balls.
Aura2, thanks for the recommendation even when moderators thought it wasn't front page worthy.

jpphilips:
Phase 1:

Probe and forensic auditing of the existing subsidy regimen

This is necessary to curb the inefficiencies in the system, recently, the Nigerian Failed Ex Minister for Finance paid "FOREX differential" as part of the subsidy regimen amongst other inefficiencies, that is so wrong to say the least. Even when the CBN issue FOREX to importers at the interbank exchange rate, yet we have to pay for the differential?
I admit there was an economic need to devalue the naira, the only justification for that payment was that relevant stakeholders were not carried along including those importers.
This is the latest inefficiency in the subsidy regimen, who knows what else is there? In 2012 it was revealed that storage of pet. products forms part of our subsidy and I ask why?
the answers didn't really add up because I have personally perused the DPR guideline for issuance of such license and storage is an integral part of it, how people without storage capacity, or people who rent storage facilities were issued those license, is where the audit will do the needful.
Issue of port delays to attract demurrage, import waivers, racketeering and other unscrupulous activities, NNPC subsidized products sold to Private depot owners at higher prices etc. I am convinced that a thorough fix in this area will save us about 15% of our current subsidy expenditure. Duration: (3 months)

Economy can’t sustain subsidy – Kachikwu, NNPC boss

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr Emmanuel Kachikwu, and other stakeholders argued, yesterday, that fuel subsidy was an unsustainable drain on the economy and called for speedy deregulation of the nation’s oil and gas sector.

The NNPC, GMD said: “Subsidy creates distortion in government revenue distribution as a result of round-tripping and unnecessary carryover of expenditures every year in a way that is difficult for government to control or sustain.”

“Removal of price control mechanisms is deemed imperative to ensure full growth of the sub-sector, by allowing private stakeholders to complement the effort of government in developing the industry,” he said. - See more at: http://www.vanguardngr.com/2015/08/economy-cant-sustain-subsidy-kachikwu-nnpc-boss/#sthash.KZUnIPGB.dpuf

http://www.vanguardngr.com/2015/08/economy-cant-sustain-subsidy-kachikwu-nnpc-boss/#sthash.KZUnIPGB.dpuf

Phase 4


Lean Government and Restructure of NPDC: It is only fair that Allison Madueke is arrested and charged for treason for crimes against the Nigerian people, NPDC by proxy. According to PENGASSEN, NPDC produces 170,000bopd, a figure I doubt seriously because by the end of 2013, NPDC is struggling to produce 90,000bopd, considering the mess Madueke made in the industry with her fraudulent indigenisation policy, I will give NPDC a fair 130,000bopd estimate for the sake of this analysis.

All the oil blocks, production platforms, Marginal wells diverted, sold or on lease by madueke including the recently divested SPDC interests should be returned to NPDC with immediate effect.
Buhari must recall the PIB from the Senate and strike off all the fraud there in and make the following changes;

*NPDC oil production will no longer be part of the Nigerian JV oil controlled by senate approved budgetary benchmark. By so doing, the senate must accept a lean government structure, that will cause a significant drop in government revenue (temporarily) but with a reduced recurrent expenditure, it is workable.

* NPDC operatorship license Must be revoked; NPDC will enter a fresh operatorship agreement with a company that qualifies with a track record of managing oil and gas production facilities. Agreement should be one that gives room for NNPC/operator expansion of production output.

* PRCN, WRCN and KRCN will have their operatorship Licence revoked, NNPC will award operatorship license to qualified refining companies to manage her operations, agreement should be one that gives room for operator/NNPC expansion of refining output.

* All the operators of NPDC, WRCN, PRCN and KRCN will be required to inherit their existing staff, train and deploy them and kindly lay off the unproductive ones to maximize efficiency.

* Export Prohibition law for NPDC output except as refined products

* Diversion of Petroleum products must attract a life sentence with no option of fine.

* Workman compensation for oil and gas workers ( a clear sharing formula for personnel charge between the contractor and the employee), an implementation agency must be enshrined in the PIB (to avoid union wahala)

In major restructuring, Buhari shrinks [size=15pt]NNPC’s[/size] directorates

.....The new GEDs include Dr M.K Baru, for the Directorate of Refining and Engineering; Dennis Nnamdi (Exploration and Production); Bankole Komolafe (Commercial and Investment); and Abdulrazak Isiaka, for Finance.

.....The eight directorates that were shrunk to four were Gas and Power, Exploration and Production, Commercial and Investment, Engineering and Technology, Corporate Services, Refining and Petrochemicals, Business Development, Finance and Accounts. NNPC chief executives (GMDs) were previously selected from among the eight Group Executive Directors, preferably that of Exploration and Production directorate, whose head is usually an engineer.

http://www.ngrguardiannews.com/2015/08/in-major-restructuring-buhari-shrinks-nnpcs-directorates/

Phase 6

Turn around Maintenance of all the refineries,


after which two different sources of petroleum products will exist in the country;

1) The trio RCN products
2) Imported Govt subsidized products,

With product 1 cheaper than product 2, interest will shift from 2 to 1 and subsidy will drop to 5%. As NPDC output grows, it is expected that new private refineries will come on board to utilize the new output that will further increase the RCN output and subsidy will die a natural death.

NNPC refutes spending N152bn on Turn Around Maintenance

Abuja The Nigerian National Petroleum Corporation (NNPC) said on Tuesday that there was deliberate distortion of facts and figures about its operations by some politicians.

This is contained in a statement issued in Abuja by its Group General Manager, Group Public Affairs Department, Mr Ohi Alegbe.
Alegbe said that the corporation was a public entity responsible to the government and people of Nigeria.

He said NNPC was focused on its mandate and would not be distracted by the spate of politically inspired polemics against its operations.
He refuted a report credited to some civil society organisations, alleging that the NNPC had committed N152 billion to execute the Turn Around Maintenance (TAM) of four refineries between 2011 to 2013.

Alegbe said that a decision was taken in 2011 to rehabilitate all refineries, using the Original Refinery Builder (ORB) of each of the refineries.
He said the NNPC, however, made recourse to a new strategy after the ORBs declined participation and nominated some partners in their stead who came up with outrageously unfavourable terms.

“The nominated partners, as sole bidders, came up with humongous price offers after two years of thorough and exhaustive scope of work definition and price negotiations. “The proxies were also unwilling to provide post rehabilitation performance guarantees,’’ he said.
He said the new arrangement, which kicked off in October 2014, entailed phased and simultaneous rehabilitation of all refineries, using in-house and locally available resources.

Alegbe said that the strategy also embraced the direct use of Original Equipment Manufacturer representatives to effect major equipment overhaul and rehabilitation. He said it was projected that the new strategy would reduce the cost of the operation by 70 per cent.
This money, he said, would help in mitigating the financing challenges of NNPC visa-a-vis refinery rehabilitation.
“The phased rehabilitation programme started in October 2014 after the required funding stream was established and will last for 18 months,’’ he said.

He said that over 60 per cent of materials needed for the TAM at Port Harcourt refinery had been delivered, adding that their installation was in progress. Alegbe said that material orders and deliveries to Kaduna and Warri refineries remained substantial.
He called on the public to discountenance sensational comments about NNPC.

http://www.vanguardngr.com/2015/01/nnpc-refutes-report-spending-n152bn-turn-around-maintenance/#sthash.SNVm1xIA.dpuf

Kachikwu: We Saved $287m in Port Harcourt Refinery Turnaround Maintenance

He ruled out any plan by the federal government to sell off the refineries, stating that instead, government might consider joint ventures.

“There will never be a plan to sell the refineries. There might be a plan to have joint venture investors, but that is going to depend on how the refineries are going to work on their own. Obviously, we are going to be looking at all options to make the refineries 100 per cent efficient,” he said.

http://www.thisdaylive.com/articles/kachikwu-we-saved-287m-in-port-harcourt-refinery-turnaround-maintenance/219243/

kaboninc:
All the narrative you wrote was at best nothing and an exercise in futility to substantiate why subsidy must be probed and audited. Your first gaffe was insulting the (former) Minister of Finance and secondly, you mistake depot owners for importers of PMS. I have corrected you on these issues yet you do not want to take corrections. I had used Capital Oil as an example of a depot owner who warehouses petroleum imports on behalf of the NNPC. Here is an excerpt from the GMD of NNPC and note how he canvassed for the complete removal of subsidy as against your Mr. Buhari who initially said he knows nothing about subsidy on to be - after been sworn in - said subsidy will stay.





Another exercise in futility. No cogent reason for why there should be a lean "government" and restructure of the "NPDC". Note the words I quoted. With specific reference to the "NPDC", maybe you should re-read your news properly as it appears you are mistaking "NNPC" for "NPDC". Let me help you:



Even in your essay, you did not give specific units that needs structuring and the possible processes.

Lastly,



Funny guy!

The turn around maintenance of the refineries have since begun, quietly, unlike the loud mouth you and your people represent.



However, I have always supported the idea of completely selling the refineries due to the nature of the Nigerian lifestyle of bureaucratic corruption. However, here is what I like and I am ready to give him a benefit of doubt:




JPPhilips......please spend more time thinking than talking!

atlwireles:
Kabonic, if I were you I will forget this thread. Your point has been clearly made, don't allow ediots draw you to their levels.