The Nigerian National Petroleum Corporation (NNPC) has made plans to raise $16.5 billion (N5.9 trillion) for the development of the nation’s upstream sector of the oil and gas industry in the next five years, and to also end importation of oil products by 20I9.
The Group Managing Director, Dr. Maikanti Baru, made this known while fielding questions from journalists on the sidelines of the ongoing Offshore Technology Conference (OTC) in Houston, United States, yesterday.
Dr Maikanti Baru, who was represented by the Chief Operating Officer, Gas & Power, Engr. Saidu Mohammed said all the nation’s three refineries were producing oil products.
“We load out at least 5 to 6 million litres of Petrol daily and about that same quantity of Diesel daily from the three refineries. That is part of what is making the petrol market in Nigeria stable today. We believe that the set target of exiting PMS importation in 2019 is achievable,” he stated.
The Minister of State for Petroleum Resources, Ibe Kachikwu also at the meeting said the sustainable funding of joint ventures (JVs) would lead to an increase in national production from the current 2.2 million barrels per day (mbpd) to 2.5 million bpd by 2019.
Kachikwu directed the DPR to ensure the withdrawal of the expired licences without further delay.
Mr. Kachikwu said that he had had discussions with the Department of Petroleum Resources (DPR), whose statutory functions included processing application for various licenses, permits and approvals across the oil and gas value chain, on the matter.
“I have spoken with DPR on the matter. Those who have not been able to move forward will have their licenses withdrawn,” he said.
He said that the aim of giving licenses was to reduce the huge capital flight to fuel importation, meet local demand and look at possible exports.
The minister explained that the review of the system was necessary as the nation’s existing refineries, which had a combined capacity of 446,000 barrels per day (bpd), were grossly inadequate to meet national daily demand.
On incentives for modular refineries, he said “indeed we have incentives for them.
“Since they will be located in states, land will be provided and the modular refineries will be peopled around private sector, especially independent producers who already have the crude”.
On the Malabu $1.3 billion scandal involving officials in Nigeria and internationally, Kachikwu said the case was a worrisome issue, but was still in court.
He explained that investors would leave other countries to do business in Nigeria irrespective of seeming unstable business climate, because “Nigeria has the best returns on any investments in the World. The terrain is good’’.
“A lot of latitude is given to investors to develop what works for them. Most of them know how to be resilient because they know the returns.
“Our resource base is huge. We have huge gas reserves, huge downstream opportunities.
“I don’t know of any country that has that much resource, that income generation. I think we can favourably compete with Saudi Arabia”.
The Federal Government under former President Olusegun Obasanjo had granted licenses to some private concerns to build refineries; but only businessman Aliko Dangote put it to use.
His refinery is nearing completion, and recently, he assured that the 1.3 million metric tonnes per annum petrochemical plant in Lagos would commence operation in the last quarter of 2018.