Nigeria Will Grow Out Of Importation Of Fuel By 2019 – Petroleum Minister

Minister of State for Petroleum Resources, Ibe Kachikwu has said that he had set a time-line to get Nigeria out of importation of fuel by the year 2019.
He said that by that time, the refineries will be fully working.
The minister, who fielded questions from news men shortly after the Federal Executive Council (FEC) meeting today, Wednesday, at the Presidential Villa, Abuja, said that a steering committee had already been put in place, with him heading it to drive the time-line.
According to Kachikwu, there is a technical committee team already set up headed by chief operating officer in NNPC, adding: “we have had series of meetings with individuals who are willing to put money into the refineries.
“I need to state this clearly: this is not a sale; this is not a concession, this is a financing scheme and there are over 30 people who have indicated interest in that financing.
“They are going to go through the usual due process mechanism to see who qualifies for that financing.
“What we have resolved however, which we have at least have a landing, is that each of the refineries would be repaired by the individual company that built the refinery.
“Who does the work is different from who does the finance of the work to be done. We are still dialoguing with who is going to get the financing opportunity but who is going to get the contracting opportunity to do the work is already decided.
“If you check the companies that built, I think is Chioda in the North and Saitem in Warri, if I’m not mistaken. I have forgotten the one in Port Harcourt but all of them have reached agreement with us in terms of willingness and readiness to do the work.” Kachikwu said that the government is not putting money into this arrangement which he said, is going to be sector led effort.
He said that the financiers are expected to recover their money through incremental volumes that will arise from the production increase, arising from the repairs.
“We are doing about 30 percent performances on most refineries now, so if you get them to above 90 percent template, we are going to use some of the product line to pay for some of the debts and free ourselves from the importation problems.”
The minister said that all the repairs of the refineries today do not cover all our consumption even as he said that the government is banking on the fact that some level of efficiency and upgrade will increase the refineries capacity. “We are banking on the fact that efficiency steps we are taking will reduce the consumption. We have gone from the 50 million liter per day when I resumed office down to today that is about 28 million liters per day.
“So, obviously, efficiency has wiped off smuggling; efficiency has reduced consumption and also whatever gains we made under the subsidy regime by taking the subsidy out has taken out. So if we are reducing the level of consumption and increasing the efficiency of the refineries, we are hoping that we will be able to exit importation completely.
“And this is not building in Dangote refinery that is 165,000 barrel cap on it, or the modular refineries we are looking at or the AGIP we are looking at.
“So I think we are finally on course and we are going to be very aggressive on target.”[myad]