Govt justifies delay in takeoff of NNPC refineries

Begins Metering Of 187 Flow Stations With N32.7b Contracts

The Federal Government has justified the delay in the takeoff of government-owned refineries, especially the Port-Harcourt Refinery, which was commissioned in a rush last year without proper completion.

Using the Dangote Refinery, which was also hastily commissioned before the end of the administration of former president Muhammadu Buhari as an example, Minister of State for Petroleum Resources, Heineken Lokpobiri, said the delay in the takeoff of the refinery was understandable.

Speaking on Friday in Abuja, Lokpobiri, who also disclosed the award of contract for the installation of metres across 187 flow stations in the oil producing region, said the installation would be done at the cost of $21 million (N32.7 billion)

He disclosed that the national oil company was doing everything possible to start the refinery, adding that the facility was at the final stage of rehabilitation.

Lokpobiri, who also disclosed that confidence was returning to the oil sector, added that the installation of the metres would further enable the country to account for the volume of production and what is missing.

“For many years, Nigeria has not been able to account for the exact figure of oil production and theft. While the current move may help, the country may not be able to account for the production at wellheads and what may get stolen before the crude gets to flow stations,” he stated.

Lokpobiri admitted that he was unsure of the situation between the wellheads and the flow stations, adding that the government was metering the 187 flow stations but would move to the wellheads in collaboration with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

According to him, all the production flows to the flow stations before being exported, stating that as such, the focus was on metering at this stage.

He said there were issues regarding actual production and export figures, adding that the current move would resolve it using technology to enhance transparency and eliminate human error.

Regarding divestments, he said the process was going on seamlessly, stressing that it involves due diligence by NUPRC before recommendations are made to the ministerial level and then to the President, who gives the final approval.

“The government is taking proactive steps to ensure these assets are managed legally and efficiently,” he said. While the metering contract would be completed in 180 days, Lokpobiri said a contract has been awarded to implement an advanced cargo tracking system within the same timeframe.

This system, to him, would monitor crude oil from loading to its final destination, addressing issues like oil theft and boosting federation revenue through digital technologies.

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