The Federal Government said, yesterday, it has neither sold nor approved concession of the nation’s refineries to any individual or company.
Addressing newsmen in Abuja, Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, also disclosed that it would cost the country about $1.2 billion to fix the three refineries.
He explained that a steering committee had been set up by the Federal Government, with a mandate to consider issues surrounding how to secure financing for the upgrade and repairs of the refineries, adding that the government was also considering inviting the original manufacturers of the refineries to participate in the process of revamping the refineries to help fast-track the process.
He said: “A steering committee was set up, which also have a technical committee. The steer given by the Nigerian National Petroleum Corporation, NNPC, to the committee was financing the upgrade and repairs of the refineries. There is no issue of concession. We are not concessioning the refineries, it is simply a financing package.
“Two, once we have identified the individuals, see if we can make contact to those who built the refineries; to ensure we go back to them. The reason we will go back to them is because they have the designs, engineering outlay, upgrade capabilities and in some cases, they have access to the spare parts. If we are going to achieve this within the time period we are talking about, we need that sort of speed.
“We have largely decided that these are the people that we should use. But in terms of who wins the financing awards, that is still work in progress. We have not received from the technical committee their final reports. We still need to review, accept, and then go for Federal Executive Council, FEC, for approval, and then the National Assembly, before we go on with the process.”
He denied saying the refineries financing and upgrade process would not be thrown open to everyone, stating that “going by the highly technical nature of refinery upgrade, not a lot of people can participate; that is the reality.
“You have to have the financing, engineering know-how and market template. I do not expect that a lot of people would participate.”
Meanwhile, the federal government Thursday reiterated its commitment to end the importation of petroleum products by 2019 by revamping the operational capacity of local refineries, bring in investors with the needed financial muscle to fund and develop functional refineries
The Minister of State in the Ministry of Petroleum resources, Dr Ibe Kachikwu who made the above disclosure while addressing newsmen said already a steering committee has been set up to work out the modalities for engaging interested companies with the requisite qualifications to build and operate functional refineries as well as participate in the revitalization of existing local refineries to ensure they produce up to their optimal capacity
He said ‘’this briefing was called in order to address the issues that are current in terms of the poor refinery program.
We decided to see how we are going to do about these refineries. Let me start by positioning some of the issue. The importation of petroleum between Jan and February this year amounted to 20 thousand metric tons resulting to 4 trillion naira. The consumption of PMs according to the CBN was 30%.
‘’ A staring committee was formed and I am part of it. Also a technical committee to identify those who were interested in financing and to make contact with those who built refineries like SAIPEN in Warri, JVC in Port Harcourt and CHIODA in Kaduna , they have engineering and in some cases, have access to spare parts’’.
The Minister further dismissed reports in certain quarters that OANDO Petroleum Company has already been handed over the operation and revitalization of Port- Harcourt Refineries, adding that the speculation is premature at this point in time since the committee is yet to complete their work and make recommendation
He also denied the talk about selling the refineries saying it is not the option before government that rather seeking agencies interested in financing the refineries and ensure an optimal production of fuel remains the primary focus of government .according to him the committee had internally determined the amount of work required to be done which will certainly cost about 1.113 trillion naira and at the moment is in the process of identifying those interested in participating in the financing.
Kachikwu further urged the media and the general public to rally round government in the objective of accomplishing their set commitments and to focus on the substance of 2019 delivery.
He said’ ’we need speed and the process need not derail through unnecessary distractions and controversies, remove controversy and sensationalism and focus on how we can achieve these set goals
