FG targets N1.3trn savings from refineries’ rehabilitation

Posted by admin Headlines Monday, May 23rd, 2011

THE Federal Government is hoping to save about N1.3trillion being the amount the nation is currently expending yearly on the import of petroleum products and associated subsidies as it is now set to fully rehabilitate the nation’s three refineries within two years.

A Presidency source revealed on Sunday in Abuja that plans were underway to ensure the complete overhaul of Port Harcourt Refining Company (PHRC), with an installed capacity of 210, 000 barrels of crude oil per day, Kaduna Refining and Petrochemicals Company with a production capacity of 110,000 barrels per day and Warri Refining and Petrochemicals Company with an installed capacity of 125,000 barrels per day.

According to the source, the move was to ensure maximum efficiency for the refineries which would then enable government to save money and also break the oil cartel that was believed to have worked against progress in the sector.

It added that the Nigerian National Petroleum Corporation (NNPC) was expected to internally generate the funds for the rehabilitation works and had, indeed, began the process of negotiations with various firms to carry out the necessary repairs in the affected refineries.

The Minster of Petroleum Resources, Deziani Alison-Madueke, has already directed the Group Managing Director of NNPC, Austen Oniwon, to begin the process of sourcing needed materials for the rehabilitation work in the PHRC following the conclusion of negotiations with contractors that originally built it.

The rehabilitation of PHRC is expected to be followed by those of Kaduna and Warri refineries, all of which are expected to be completed by 2013 and when completed, the Presidency source was confident that it would return the nation to the part of sufficiency in kerosene and diesel production

According to the source, “this is going to save the Federal Government huge sums of money because in the first place, government is not going to spend a kobo to do the work. NNPC, through its savings, has been able to muster enough resources to carry out the work.

-Tribunewp_posts