Why FG shut down all refineries – NNPC

0
122
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) has been conferred with the African Leadership Commendation Award by the African Leadership Magazine. The award was conferred on him at the 5th US-Africa investment Forum and the African Business Leadership Awards 2020 which was held virtually. Speaking at the ceremony, Mallam Kyari commended the African Leadership Magazine for recognising the little effort to reposition the NNPC by his management team to deliver value to the Nigerian people. He described the award as a challenge to do more and reposition the industry on the path of sustainable growth. ‘’For the little effort we are putting to deliver value to the Nigerian people to be recognized is worth minding, this has also thrown a new challenge at us, telling us that we need to do more, that this company can deliver more value to its shareholders and ultimately the Nigerian people will recognize that this company is serving them’’, the GMD stated. The African Leadership Award was designed to reward exceptional corporate leadership and contributions to the development of Africa and the great works that leaders are doing on the continent. Other awardees at the ceremony include Ahmed Shide, Minister of finance and Economic Cooperation of Ethiopia and Ernest KwaminaYedu Addison, the Governor of Ghana’s Central Bank.
For More Enquiry: 08052442020

The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, says the four oil refineries in the country have been shut down in Port Harcourt, Warri and Kaduna.

Kyari said this in a television programme, Politics Today on Channels Television.

He explained that all four refineries were functioning below capacity and it had thus become necessary to stop them from operating all together.

Responding to a question, the NNPC boss said, “First, all the four refineries in three locations are shut down and it was a deliberate decision for two reasons. One is that delivery of crude oil to these refineries is completely challenged because the pipeline network has been completely compromised by vandals and all kinds of people that will not allow us to operate these pipelines.

“That means you are not able to deliver crude oil to these refineries effectively to their maximum capacity. Secondly, what you call rehabilitation is different from the turn around maintenance. Turnaround is routine which every refinery does but when you talk about rehabilitation, it is that colossal loss of capacity in the refinery and it means you haven’t done the turnaround maintenance properly.

“Typically, every refinery is expected to operate at 90 per cent of its installed capacity. With the best of effort, with all the turnaround maintenance that has taken place, it is impossible to run any of the refineries before the shutdown at that level. Our estimate was to run it at 60 per cent of capacity but if you do that, all you are doing is value destruction. You will take $100 crude into the refinery and bring out $70 product. It doesn’t make sense.”

Kyari said this in a television programme, Politics Today on Channels Television.

He explained that all four refineries were functioning below capacity and it had thus become necessary to stop them from operating all together.

Responding to a question, the NNPC boss said, “First, all the four refineries in three locations are shut down and it was a deliberate decision for two reasons. One is that delivery of crude oil to these refineries is completely challenged because the pipeline network has been completely compromised by vandals and all kinds of people that will not allow us to operate these pipelines.

“That means you are not able to deliver crude oil to these refineries effectively to their maximum capacity. Secondly, what you call rehabilitation is different from the turn around maintenance. Turnaround is routine which every refinery does but when you talk about rehabilitation, it is that colossal loss of capacity in the refinery and it means you haven’t done the turnaround maintenance properly.

“Typically, every refinery is expected to operate at 90 per cent of its installed capacity. With the best of effort, with all the turnaround maintenance that has taken place, it is impossible to run any of the refineries before the shutdown at that level. Our estimate was to run it at 60 per cent of capacity but if you do that, all you are doing is value destruction. You will take $100 crude into the refinery and bring out $70 product. It doesn’t make sense.”

Share Buttons
For More Enquiry: 08052442020

LEAVE A REPLY

Please enter your comment!
Please enter your name here