Group Managing Director (GMD) of the Nigeria National Petroleum Corporation (NNPC), Mr. Andrew Yakubu has given assurance that federal government is according high priority to the completion and full operation of the nation’s three refineries.
They are the Warri Refinery and Petrochemical Company (WRPC), the Port Harcourt Refinery and Petrochemical Company as well as the Kaduna Refinery and Petrochemical Company KRPC).
Mr. Yakubu said in a document obtained from the NNPC headquarters in Abuja, that the completion of work on the refineries is top on the reform agenda of the Goodluck Jonathan government, even as he made it clear that he is committed also to sustain other parts of the reform in the petroleum sector.
According to the Group Managing Director, the upstream sub-sector of the industry which deals with crude oil production has been sustained at 2.48 million barrels per day. He added that only recently, production capacity reached an all time high of 2.7 million barrels per day due to the sustained amnesty programme of the President Jonathan’s government.
The NNPC boss disclosed that various efforts have been made by the government to increase Nigeria’s crude oil reserves in the Inland Sedimentary Basins, especially in the Chad Basin as well as reactivate the erstwhile abandoned SPDC JV assets and ramped up production on the divested SPDC JV assets.
“This has positively impacted on NPDC’s growth aspiration with current crude oil production averaging 130,000 barrels per day.”
Yakubu emphases the progress so far made by the Corporation over the last 15 months, saying that the NNPC is working to ensure that not only is the UNEP report on the environmental devastation of Ogoniland implemented, the development cost of both JV and PSC projects has been drastically reduced so as to shore up government’s revenue.
He explained the Federal Government’s achievements in the midstream sub-sector, gas supply for power generation and industrial use, adding that effort has been sustained,especially with the gas supply intervention programme that has led to increased gas supply to the Western Gas corridor.
Implementation of critical pipeline infrastructure for gas supply is being vigorously pursued, he said even as he asserted: “after a prolonged delay, the ELPS phase 1 expansion project has been commissioned, which allowed the evacuation of additional 135 mscfd of gas production from Chevron Escravos gas plant.
“Gas supply to Olorunsongo has also been commissioned, while the OB3 and Oredo-Ogherefegas supply projects are in progress.”
Yakubu said that with the support of the government, NNPC has succeeded in securing the support of JBIC of Japan in part-financing of NNPC equity interest and the Japanese strategic investor’s participation in the Brass LNG project.
He described this as “a commendable milestone in NNPC’s quest at ensuring attainment of FID by first quarter 2013.
“Substantial progress has been made in the implementation of the critical gas utilization projects (Petrochemicals& fertilizer plants and CPF facilities) as outlined in the Gas Revolution: feasibility studies of the CPF project has been completed with pre-FEED in progress, while pre-selection of bidders for EPC on the Fertilizer project has been carried out. Pre-feasibility studies on the Petrochemical plants have also commenced.”
On the Downstream sub sector the NNPC, GMD said that the Corporation on the path of growth and sustained development has sustained production nationwide despite the occasional hiccups due to labour action and vandalism of crude oil/product pipelines.
He disclosed that after over a decade, the Port Harcourt – Aba product pipeline was re-streamed with Aba Depot re-commissioned in June 2012.
The integrity of other key product pipeline infrastructure, such as Warri-Benin, Aba-Enugu etc are being re-established, he said, stressing that the effort will make more products available in inland depots, which will enable faster intervention when necessary.
On tackling the problem of the availability of Kerosene in the country, Mr. Yakubu said the current management of NNPC is collaborating with other stakeholders to progress the programme of Kerosene to LPG switch with a view to addressing the long term phase out of kerosene for domestic use.