Page 14 - DMEA Week 07 2023

DMEA NEWS IN BRIEF DMEA

made available to our correspondent in Abuja
on Wednesday, also stated that efforts were
ongoing to get the Port Harcourt and Warri
refineries ready in the first half of this year.
He, however, pointed out that the local
refining of crude would not warrant a massive
crash in the cost of petrol, though there
would be some gains in price with respect to
logistics.
He said, “This understanding that once
you start local refining prices will crash, this is
not so. It is very unlikely to play out that way,
REUTERS He said, “We have the mandate to because firstly, crude oil will continue to be
ensure energy security for the nation. We the major feedstock for every refinery. 70 per
FG plans to repair Warri, are focusing on monetising our gas which cent of your operation cost always come from
is evident in some of the key projects like
crude, as your feedstock, and this is priced at
Kaduna refineries the AKK project. This is all done to ensure international market.
NNPC is fulfilling its mandate and spurring
“However, two things will change when
The Nigerian National Petroleum Company development. we start local refining. It gives you security of
Limited has said that the rehabilitation of “We are working to revamp our refineries. supply. Now, when you place an order, it takes
three refineries in the country which it has For instance, the Port Harcourt refinery will you 14 days to get these (petroleum) products
embarked on would reduce fuel scarcity. be functioning by the second quarter of 2023. from Europe into our country and that can be
NNPCL Executive Vice President, Danladi Area five of the refinery will be functioning. a matter of concern.
Inuwa, disclosed this on Wednesday during a Also, Warri and Kaduna refineries will have “Any glitch with weather, war situation,
workshop sensitisation programme with The been signed on a quick rehabilitation to refine or something happens, you’ll run into
Natives, a civil society organisation in Abuja. our petroleum product in the country.” trouble, but once you’re producing locally, the
He also revealed that the Port Harcourt He acknowledged that the country was products become very close to you and the
refinery will start operations by the second battling with fuel scarcity but assured that it issue of energy security becomes much more
quarter of 2023, adding that the Warri and would be resolved very soon. assured.”
Kaduna refineries have been contracted for PUNCH Secondly, he said the in-country refining of
quick rehabilitation. crude “reduces the logistics cost, because for
The programme titled, “Understanding our NNPCL projects savings you to move products from Europe to Nigeria,
national oil company post-Petroleum Industry probably it is going to cost you about N21/litre
Act” was aimed at enlightening the public and from local refining today.”
moving citizens’ involvement from protests to PUNCH
participation in the decision-making process Nigeria is going to save about N367.2bn
of the profit-oriented company. annually through the domestic refining of
The president of the group, Olalekan crude oil to Premium Motor Spirit, popularly FUELS
Edwards, in his address, voiced concerns called petrol, the Nigerian National Petroleum
about citizen participation in influencing key Company Limited has said. Kuwait to increase diesel,
project decisions in host communities, noting NNPC’s Group Chief Executive Officer,
that the narrative needed to change from Mele Kyari, explained that the refining of jet fuel production
protests to participation in key decisions. crude oil into PMS in Nigeria would compress
He said, “The accurate picture here is we the logistics cost around petrol supply by The Gulf states are facing challenges to
want to change the narrative from protest to about N17/litre, describing this as significant. increase fuel production capacity to meet the
participation. This was also confirmed by oil marketers European demand, which is likely to grow
“We most times address them at the on Wednesday, who told our correspondent over time as long as the conflict in Eastern
aftereffect of misapplication of funds or that it was high time the Federal Government, Europe persists for a longer period, reports
projects that are not in developmental the through NNPC, got Nigeria’s refineries Al-Qabas daily. The European countries are
communities, so we have decided to rise working, based on the huge benefits this increasingly resorting to producers in the Gulf
up. If you go to different host communities, would avail the country. region to fill the shortage they experience
you will hear issues that boil down to their NNPC supplies over 60 million litres of because of cuts in Russian energy supplies.
development. petrol daily to keep Nigeria wet with the Global markets face an increasing risk of
“We are placing a demand. We want to product. A N17/litre reduction in logistics a shortage of diesel in the coming period,
begin to participate in our affairs rather than cost would translate to N1.02bn savings daily. as long as the Europeans are determined to
just protest.” Based on this, Nigeria is going save over keep in place the ban on Russian imports.
Responding, Inuwa explained that by N367bn annually once the country starts Senior oil sources told the daily that there is
becoming a limited liability company, producing petrol domestically from Dangote increasing pressure on most refineries in the
the company has been able to invest in Refinery, as well as the country’s refineries Gulf region and the Middle East, especially
infrastructure and initiate various corporate under the management of NNPC Kuwait and Oman, after the European ban on
responsibility initiatives to spur development Kyari, while speaking during a programme all types of fuel coming from Russia, including
while ensuring energy security. on Nigeria Television Authority, which was products from jet fuel to gasoline and diesel.

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