Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has disclosed that two of the nation’s refineries are still not operating in full capacity and need to be rehabilitated in order to ensure free flow of petroleum products before the end of the year. He made this known in an interactive session with the members of the National Assembly yesterday in Abuja.
According to him, “The current state of the refineries, from the available reports before me, two of the refineries may be re-streamed before the end of December, 2015.”
In a presentation titled, ‘The Roadmap for Nigeria’s Oil and Gas Sector,’ Dr. Kachikwu noted that the average national oil production
as at July 2015 stood at 2.1 million barrels per day and the Nigerian
Petroleum Development Company, NPDC equity production is 99,000 barrels per day.
He also added that efforts are on to engage private investors to build new refineries within the old ones to enable the refineries share power, pipelines and other resources.
He stressed that the new agenda for the oil and gas industry is centred on having the right people, doing the right things, at the right time, for the right purpose to yield the right results. Dr. Kachikwu stated that the petroleum sector under his watch would ensure that the Nigeria Content policy would transform the oil and gas industry into the economic engine for job creation and national growth.
The Minister also said he was obliged to cancel the Offshore Processing Agreements, OPAs, crude-for-products-exchange arrangement (popularly known swap) and other unprofitable products and crude arrangements all in a bid to avoid rent seekers and add value to the Nigerian hydrocarbon resources.
On the downstream sector, Dr. Kachikwu advocates for the introduction of a private sector model that would reinvigorate the efficient supply and distribution of petroleum products especially in the area of pipeline assets.
He said the menace of pipeline vandalism has led to huge losses of
crude and petroleum products, adding that 27, 967 incidents of pipeline vandalism were recorded in the last few years. He noted that unutilised pipelines and poor pipeline integrity also led to high cost of trucking and impact on the roads.
He said the declining Joint Venture reserves were due to inadequate and low investment in the oil assets, stressing that the issue of funding constraints must be addressed going forward with the collaboration of private and international investors.
Kachikwu disclosed that the average gas to power generation is about 3,000 megawatts and domestic gas supply of one billion standard cubic feet with the contribution of 600 million standard cubic feet from NPDC.

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