goldtube:
APC with promises are like 5&6

MadCow1:



There is a Fraud being perpetuated with those licenses.. Same shiit they did with GENCO's..

What they do is use those licenses to secure loans from banks, use the Loans to finance other Businesses, make a profit, repay the loans and nothing is ever built..

The Government needs to revoke the licenses of holders who have not made any in-way or progress with it..

Another thing is also that it takes a lot of ground work to build a refinery.. Example: The EIA report alone takes over a year to get. The Basic Engineering as well takes time. HAZOP and HAZID, getting the Third Pary Certification for each design, contacting the international vendors that would handle the fabrication of many parts, e.t.c.. Building a refinery is not as simple as building a 2 bedroom flat. Securing the supply agreements as well is yet another wahala on its own.

The F.G would have to mediate in many of these deals and act as a mediator to fast track many things.

MadCow1:



There is a Fraud being perpetuated with those licenses.. Same shiit they did with GENCO's..

What they do is use those licenses to secure loans from banks, use the Loans to finance other Businesses, make a profit, repay the loans and nothing is ever built..

The Government needs to revoke the licenses of holders who have not made any in-way or progress with it..

Another thing is also that it takes a lot of ground work to build a refinery.. Example: The EIA report alone takes over a year to get. The Basic Engineering as well takes time. HAZOP and HAZID, getting the Third Pary Certification for each design, contacting the international vendors that would handle the fabrication of many parts, e.t.c.. Building a refinery is not as simple as building a 2 bedroom flat. Securing the supply agreements as well is yet another wahala on its own.

The F.G would have to mediate in many of these deals and act as a mediator to fast track many things.

frisky2good:
The solution to our problem is micro refineries. Deregulate it completely and allow anyone that is interested to open and operate a refinery. Some big companies use up to 1 billion Naira worth of fuel every year. They will be willing to finance any micro refinery that can guarantee them fuel at a reduced rate. 10 diesel suppliers can source for funds and start a micro refinery. All those militants in the niger delta that made money from oil surveillance contracts can open micro refineries. If we are waiting for someone to open one big refinery to satisfy us all, we will still be like this in 30 years time.

engrchykae:
part of the negotiation ur so-called heroes past aka founding fathers made with the criminal British was to allow shell the monopoly of whatever happens in our monoeconomy oil sector,awolowo was aware and was raising alarm until he was settled with finance minister.
Nigeria will not have it right with power, petroleum and fiscal federalism.
because some Judas Nigerians are equally enjoying the show eg ibb,obj,abdusalami abubakar.these young judases took over from the old festus okotie eboh,zik,balewa,saudauna and people like omenka,abagworo etc are warming up to take over.

frisky2good:
The solution to our problem is micro refineries. Deregulate it completely and allow anyone that is interested to open and operate a refinery. Some big companies use up to 1 billion Naira worth of fuel every year. They will be willing to finance any micro refinery that can guarantee them fuel at a reduced rate. 10 diesel suppliers can source for funds and start a micro refinery. All those militants in the niger delta that made money from oil surveillance contracts can open micro refineries. If we are waiting for someone to open one big refinery to satisfy us all, we will still be like this in 30 years time.

989900:
This one of the lowlights of this admin.

While I can relate to the difficulties/excuses from vandalism to corruption, I can't give PMB a pass, this is one of OBJ's, and GEJ' biggest failures, and it is still the same merry go round with PMB -- that sucks.

The refineries are about the most important thing to the republic, considering its DIRECT EFFECT on our economy, reserves, and the Naira -- absolutely no excuse can justify the lack of new modular refineries, nor the low performance state of the existing ones.

We need results, working on it for over 14 months for a problem you claim to have the solution is unacceptable.

Either peacefully or otherwise, you just have to get it done.

abbaadamufan:
Good observation,

I think it's a case of doing the right thing at a time when the climate is bad(the wrong time). The move to open up the sector and grant licences to private refinery operators is the perfect one, if government wants the innovative ability of the private sector to move the petroleum sector past the 80s kind of way it's been operating.

But who'll spend money on a refinery today, when production of crude is hampered by militants?

It will take only a Dangote, or someone else with the cash and government backing to try this feat in this climate.

I don't think this administration has the acumen to take loans to get the economy floating again. Besides it's a bad move.

A good economy is one that can stay afloat even when a government doesn't meddle with it.

989900:
This one of the lowlights of this admin.

While I can relate to the difficulties/excuses from vandalism to corruption, I can't give PMB a pass, this is one of OBJ's, and GEJ' biggest failures, and it is still the same merry go round with PMB -- that sucks.

The refineries are about the most important thing to the republic, considering its DIRECT EFFECT on our economy, reserves, and the Naira -- absolutely no excuse can justify the lack of new modular refineries, nor the low performance state of the existing ones.

We need results, working on it for over 14 months for a problem you claim to have the solution is unacceptable.

Either peacefully or otherwise, you just have to get it done.

MadCow1:



There is a Fraud being perpetuated with those licenses.. Same shiit they did with GENCO's..

What they do is use those licenses to secure loans from banks, use the Loans to finance other Businesses, make a profit, repay the loans and nothing is ever built..

The Government needs to revoke the licenses of holders who have not made any in-way or progress with it..

Another thing is also that it takes a lot of ground work to build a refinery.. Example: The EIA report alone takes over a year to get. The Basic Engineering as well takes time. HAZOP and HAZID, getting the Third Pary Certification for each design, contacting the international vendors that would handle the fabrication of many parts, e.t.c.. Building a refinery is not as simple as building a 2 bedroom flat. Securing the supply agreements as well is yet another wahala on its own.

The F.G would have to mediate in many of these deals and act as a mediator to fast track many things.

ephi123:


Sir, are you attempting to WAIL?! Then there is hope for the others. I see keneking too, I see you guys

CeeTeeOoo:


You are soo on point! I do not understand our fixation with "Grand White Elephants!"

1,000 micro refineries of 20,000 barrels capacity is equivalent to A 2,000,000 barrels capacity Giant Refinery, only that the former will create more jobs. Another plus is that they all cannot be down at the same time so you have more redundancy in the system.

Simple logic.

The same mistake we are making with power. You do not need a gigantic 2000MW power plant always when you can get 200 separate 10MW micro power plants that are distributed to provide power, You decentralize your grid and reduce costs with transmission. Advantage of redundancy again. They cannot all be down at the same time.

Simple logic as always.

CeeTeeOoo:


You are soo on point! I do not understand our fixation with "Grand White Elephants!"

1,000 micro refineries of 20,000 barrels capacity is equivalent to A 2,000,000 barrels capacity Giant Refinery, only that the former will create more jobs. Another plus is that they all cannot be down at the same time so you have more redundancy in the system.

Simple logic.

The same mistake we are making with power. You do not need a gigantic 2000MW power plant always when you can get 200 separate 10MW micro power plants that are distributed to provide power, You decentralize your grid and reduce costs with transmission. Advantage of redundancy again. They cannot all be down at the same time.

Simple logic as always.

MadCow1:


How does SPDC have monopoly in the Oil Sector when you have over 10 Operators working in the Sector?


Shell's monopoly that could not save them from getting away with the environmental degradation of Ogoni Land?

Bros abeg stop with the conspiracy theory..

engrchykae:
they are not a. force. to be reckoned with yet they mounted pressure for saro wiwa to. be murdered,by. the way,u said they didn't get away with the environmental pollution I want you. to tell. us what punishment has been meted out. on shell as they paid. heavily for their messing up of gulf of Mexico?
its people like you

Keneking:
PMB is undecided
Someone who is planning to bring back NEPA, NITEL and Nigeria Airways has no plans for the refineries.
I am sure, he likes national antiquities
He would keep it till Mr. Dangote starts his own refineries in December 2018
A government that plans to bring in crude oil from Chad and Niger to be refined in Kaduna, has no clue
They plan to take crude from Lagos through the borders to neighbouring Chad and Niger. Useless government.

Joavid:
This month makes it one year since 65 companies were granted licences to build modular refineries in Nigeria.
So far only one company was in the news when it claimed that it's refinery will be ready before 2016 ends. They later moved it early 2017.
and this has confirmed my assertion that private enterprises will not solve Nigeria's infrastructure deficits, and the way out is for governments to build those infrastructure and then sell them to the public. If that means taking foreign loans from ADB, IDB, or the World Bank, so be it. Yes, there is a risk that those loans may be squandered - as happened in the past - but that is minimal, understanding the present federal government.
But then, I expect such things to be important enough for Nigerians to keep track of their progress, but over time we got distracted with what Ayo Fayose or Dino Melaye is saying. I think we should keep our eyes on the things that matter most.

#justthinkingaloud

MadCow1:



Lol.. You said SPDC had Monopoly in the Oil Sector.. That's False. I am attacking your comment directly.

SPDC may have coerced the government to deal with Ken Saro-Wiwa, but remember that we were under Military rule and everyone knows they were complicit in illegalities.. Ken was killed after a Military trial by Gen. Sani Abacha who wasn't the nicest of Heads of State. Infact, I doubt Abacha needed SPDC's go ahead to kill Ken.

Go and find out about the rulings recieved by Ogoni from Shell in both punitive and compensatory damages..


The Gulf of Mexico? Wasn't that BP?


And what do you want to say about people like me? You better keep this conversation civil and on the topic being discussed because you may not like where this will lead should you chose to make it personal.

Thanks.

Joavid:


You are right, the government needs to revoke the licences from unserious holders. because as far back as 2005/2006 about 19 licenses were awarded for refineries but these folks used it as a bargaining chip to acquire oil blocks and some even said if govt does not deregulate the industry they can't go ahead to invest.


but then, I believe there is only one way for infrastructural breakthrough in Nigeria. that includes, oil refineries, railway, power generating plants etc - The government should build those infrastructures and then sell them to the public. If that means taking foreign loans from ADB, IDB, or the World Bank, so be it. there is a risk that those loans may be squandered - as happened in the past - but that is minimal under the present federal government.

for instance, smaller enterprises in places like the U.S enjoy huge government grants and subsidies. If you take away government, America's active tech startup sector will shrink immensely if it didn't collapse. Tesla motors was given close to half a billion dollars loan by the Obama administration to develop their Model S. But come to Nigeria, they'd be telling you that government has no business in business.

As you said it takes alot of ground work to build a refinery, but unfortunately, we have only one Dangote.

Reference:


No ma'am, you canot run/manage/operate what you have not built effectively except you were part of the system that built it. That is why the only privatisations that have worked in Nigeria are not of physical plants, industries or ventures but of systems and licenses and fanchises. The telecos were privatised but NITEL remains dead. The GENCOS and DISCOS have the same problems, the petrochemical and fertilizer plants have the same challenges so are the much maligned steel plants. We have this problem of lack of capacity and it doesn't come easy, it will be a slow learning process which we must endure.

Amongst those who bought into power, how many had previous experiences running plants. None. They are all hybrids of politicians and ex-political leaders in colabo with white collar (and I say this with all conviction) foreign mercenary operators, not the blue chip energy companies that can properly invest and have the know how and international connections to make the system truly work. The Mike Adenuga model was just a one off, serious businesses like power and petroleum/petrochemicals require the likes of an MTN or an Etisalat type of investor and they will hardly want to take on local assets with their chatacteristic problems but rather build their own.

We cannot expect miracles within a short time. We just liberalised our fx market a matter of weeks ago and the petroleum sector months ago (even though these are not fully deregulated) so we are in a period of wait and we have to wait for the injuries of economic somersaults to heal sufficiently for more investment to come in. But like a farmer we cannot continue to dig up the seed to check whether it as taken root lest we lose it completely.

My advice to government is to stay away from enterprise CONSISTENTLY, and make the public know that businesses is their (public) not government's responsibility. What the government has to do is to invest in infrastructure and create the enabling environment by sound, business friendly policies, programs and reforms. That is hard infrastructure such as roads, rails, ports, etc and soft infrastructure such as the foreign reserve, sovereign wealth fund and a healthy debt portfolio.

Dangote is a lead, a necessary one. Others are watching and will dive in if he suceeds, but will run if he fails. We as a nation have to hold our nerve and make that lead succeed at all costs. Telecos and power out of government hands has saved us through the treasury trillions over the last decade. We may not appreciate it now but just imagine if those bills were still being paid by government, both the legitimate ones and the corrupted ones, surely we will have been far poorer than we are now. Please don't bring that era back, no matter your interests.

Koleman:
My thoughts too. What is wrong? Am confused really. Does it have to do with administrative bottle necks? or is the fault from private companies themselves? I doubt the later. How can u indicate interest and backdown when the licence is finally granted? 65 Different companies cannot just make the same decision except the reason is a from a common source. I think this govt ain't serious about boosting domestic capacity if not any administrative or Legislative bottle neck should have been dealt with by now I say this because one of the Potential investors in an interview on channels TV made these complaints. some existing laws will have to be changed or modified but I see no willingness from either the executive or legislature.