The Nigerian National Petroleum Corporation said it had engaged the original builders of the refineries in Port Harcourt, Warri and Kaduna, in a bid to return them to at least 90 per cent capacity utilisation before the end of 2019.
Nigeria has four refineries with an installed capacity of 445,000 barrels per day, but they have continued to operate far below the installed capacity for many years.
The corporation, in its quarterly publication for the fourth quarter of 2017, obtained by our correspondent, said it was working in tandem with the Ministry of Petroleum Resources and other stakeholders to implant a novel refining model and other strategies that would restore the refineries and expand existing capacities to record levels.
The reform, according to the NNPC, also seeks to entrench a self-sustaining financial model with near zero reliance on the Federal Government funds.
The publication noted that the Group Managing Director, NNPC, Dr. Maikanti Baru, recently inaugurated eight committees charged with the express directive to return the refineries to their nameplate capacities by 2019.
It said, “To encourage seamless work flow and underscore the crucial nature of the task ahead, the committees are headed by a steering committee, chaired by the GMD. Other committees are: rehabilitation, stakeholder management, financing, legal, procurement, pipeline and crude oil supply and security as well as staffing and succession planning.
“For a start, the corporation has gone back to the original refineries’ builders, which are the JGC Corporation of Japan for Port Harcourt Refinery, Italy-based Snamprogetti, for Warri Refinery and Japan-based Chyoda, for Kaduna Refinery.”
The Chief Operating Officer in charge of the refineries and petrochemicals autonomous business unit, NNPC, Mr. Anibor Kragha, was quoted as saying that the original builders had actually started conducting studies to determine the cost of fixing the plants and returning them to minimum capacity utilisation of 90 per cent.