Page 11 - AfrOil Week 34 2022

AfrOil POLICY AfrOil

Kyari says Nigeria cannot eliminate oil

theft by legalising underground refineries

NIGERIA NIGERIA cannot eliminate the long-standing Kyari also pointed out that modular plants
problem of oil theft in the Niger River Delta by had the potential to have significant impact on
legalising underground refineries, Mele Kyari, local fuel markets. “That’s why there are licences
the group CEO of Nigerian National Petroleum given out for modular refineries, and they can
Co. Ltd (NNPC Ltd), has said. produce up to 1,000 barrels [per day] to 20,000
In remarks broadcast by state-run Nigerian barrels per day” of petroleum products, he said.
Television Authority (NTA) on August 22, Kyari Nigerian authorities are paying close atten-
asserted that there was no proper way to con- tion to the matter, he added, as about 700,000
vert the makeshift facilities set up to process barrels per day (bpd) of the country’s crude oil
crude oil siphoned illegally from pipelines into production never reaches the market due to
legitimate working refineries. He also described theft, sabotage and breakdowns. Breakdowns
underground refineries dismissively as no more and shutdowns probably account for most of
sophisticated than a pot left to boil over a heat these volumes, or around 500,000 bpd, while
source. direct theft may make up only about 200,000
“Refining is a science of its own. The cook- bpd, he added. ™
ing pots you are seeing are not refineries in any
sense,” he remarked. “There’s simply no way you
can convert these cooking pots to legal refiner-
ies. It’s not possible.”
The campaign to reduce oil theft should
therefore focus on encouraging the construction
of small-scale modular refineries rather than
seek the legalisation of underground bunkering
and refining operations, he continued. Modu-
lar plants are feasible and there are legal options
for local organisations looking for a way to get
involved in the processing of crude oil, he said.
“[Modular] refineries can be constructed,
and [NNPC Ltd] has a framework for support-
ing those who want to do modular refineries,”
he stated. NNPC Ltd has launched an anti-theft campaign (Image: Twitter/@nnpclimited)

Ahmed: FEC has approved plan for summit

meeting on Nigeria’s gasoline subsidy

NIGERIA NIGERIA’S Minister of Finance and National those invited to the event will include represent-
Planning Zainab Ahmed said on August 18 atives of the federal government, all of Nigeria’s
that the Federal Executive Council (FEC) had political parties, and all relevant stakeholders,
approved the National Assembly’s proposal for she said.
a summit meeting on the planned elimination of “When we engaged with the leadership of
domestic gasoline subsidies. the Parliament, they recommended a national
Speaking to members of an ad hoc commit- stakeholders forum that will bring all major
tee set up by the House of Representatives to stakeholders together, including all political
investigate the subsidy policy, Ahmed said that parties’ leaders,” Ahmed was quoted as saying by
the FEC had endorsed the plan drawn up by the Premium Times. “We reported that at the Fed-
National Assembly and that arrangements were eral Executive Council, [and] we got approval
being made to convene the meeting. that it should be arranged, and the government
As suggested by members of Parliament, is looking at that.”

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