Overhaul Work on Refineries Begins Next Month - Kachikwu

Plans have been concluded to complete necessary arrangement with financials for the overhaul of the country’s refineries to become a reality next month.

Minister of State for Petroleum, Dr. Ibe Kachikwu stated this while reviewing efforts of the current administration in the oil and sector.

Kachikwu noted that President Muhammadu Buhari and the President of Niger Republic, Mahamadou Issoufu, would in the coming weeks sign a Memorandum of Understanding (MoU) for the construction of a new refinery to be located in a border town between both countries and close to Katsina State.

The minister insisted that there was no going back on government’s commitment to end environmental challenges in the oil-producing region, especially the need to bring an end to gas flaring in the next two years.

On the new refinery, Kachikwu said: “The refinery talks are at advanced stages. We expect the two Presidents to meet soon for the joint signing of the MoU”.

He said government would put policies in place to fast-track private sector involvement in the downstream sector, as nameplate capacity utilisation of existing refineries would still not ensure 100 per cent consumption availability.

He noted that the roadmap launched by the administration, otherwise called the ‘7 bid wins,’ has helped in boosting oil production and sustaining peace in the oil-producing region.

He pointed out that, continuous engagement with stakeholders and partnership with PANDEF added huge value towards improved figures of oil output.

“On modular refineries, two are structured to be delivered early in 2019. Five are deep in the fabrication process and we are looking at delivering a total of about 10,” he added.

On the Niger Delta and security, Kachikwu stated that after the collaborative work done with other Ministries, Departments and Agencies (MDAs), state governments are now fully involved.

Also speaking on the country’s relationship with Organisation of the Petroleum Exporting Countries (OPEC), he said: “Nigeria, over the last three years, has shown tremendous leadership in the body, with a very visible presence and respected voice.

“This can also be attributed to the various exemptions we have gotten so far in the area of productions cuts.”

Regarding reforms in the Nigeria National Petroleum Corporation (NNPC), he noted that government had taken a bold step through its policy, called the ‘20Fixes,’ adding that the Group Managing Director (GMD) of the corporation, Maikanti Baru, would implement necessary reforms and unbundling processes