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Nigerian refineries’ capacity to hit 1mpd by 2017

By on February 4, 2015

A former General Manager of the Warri Refinery and Petrochemical Company, Mr. Babajide Soyode, has stated that by 2017, Nigerian refineries would have the capacity to process one million barrels of crude oil per day, against the current capacity of 445,000 barrels per day.

Speaking at the 80th Birthday Anniversary dinner, organised in Lagos for the first Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Festus Marinho, the former Warri Refinery boss stated that several plans by government for small refineries would come on stream by 2017.

He noted that Nigerian refineries currently have about 445,000 barrel per day capacity, while Dangote is also putting up 500,000 barrel per day refinery in Lekki which is expected to come on stream by first quarters of 2018.

“There are several plans by government for small distributing refineries to come on stream by 2017. If all this is added together we will have about one million crude oil capacity per day.

I also presume that NNPC is planning to upgrade its refineries by increasing the capacity and modernising the technologies; they have the potential of doubling the capacity from 445,000 to 900,000 barrel per day,’’ he said.

According to him, that was the only way for the NNPC to achieve its target on refined petroleum products in Nigeria.

“Other smaller refineries like Niger Delta Petroleum Resources are also producing about 1,000 barrel per day and is also planning to upgrade to 6,000 barrels per day to produce the full grade. The marginal field producers are also likely to be operating refineries in order to fight the challenges of bunkering of crude on the highland,’’ he said.

On the petrol pump price, Soyode said that the reduction was not the best for now, adding that government ought to have kept the price at N97 per litre.

He said government should have collected N10 per litre as tax and save the money as a buffer for future price fluctuations.
“We are paying a lot on importation of refined petroleum products; the actual cost is more than that because it has been loaded with demurrage, levies and transportation costs. Government should have kept the N10 as a tax and remove subsidy because there is no law on subsidy,” he added

He also insisted that deregulating the downstream sector of the industry remained the lasting solution to oil and gas challenges.

“What has the subsidy contributed to the common man; the common man is more affected; if subsidy is removed, there will be abundant and availability of products at commensurate prices.

Nobody can control pricing in a country where other sub sectors are lacking. Subsidy should be removed and use the money to grow other basic infrastructure in the country; this will make Nigeria a better country. Removing subsidy would translate into better schools, roads, education, hospitals for citizenry. The rich people are the people benefiting more from the subsidy than the common man. Removing subsidy and reducing the level of tax payment on the common man will go a long way in addressing major socio-economic challenges,’’ Soyode said.

In his remark, a former Managing Director of NNPC, Mr. Funsho Kupolokun said that the celebratrant played a vital role in Nigeria’s oil industry, adding that his principles and immense contributions remained the driving force of NNPC.

“Marinho is a father of the industry; the man is highly transparent, committed and focused. Marinho has contributed immensely to the growth of the oil and gas industry; he gets things done effectively not like now when petroleum industry bills have been pending for over 12 years,’’ he said.

Chairman of the occasion, Mr. Akintola Williams, who is also the Chairman of Akintola Williams & Deloitte, said that the quality of oil industry operators at the gathering was a demonstration that Marinho was an icon of the oil and gas industry.

Williams stated that Marinho deserved the honour he was given by his friends and loved ones.

“I urge all of you young ones to emulate Marinho’s uprightness, obedience, efficiency and commitment to his father’s land,” he said.

 

[ThisDay]