Nigerian National Petroleum Corporation, NNPC yesterday said that the nation’s four refineries are expected to operate at 90 percent capacity after the ongoing Turn Around Maintenance, TAM.
This was disclosed by NNPC General Manager, Services, Mr. Abubakar Muhammed, at the 38th edition of the International conference of the Society of Petroleum Engineers (SPE) and exhibitions in Lagos with the theme “Natural Gas Development and Exploitation in an Emerging Economy Strategies, Infrastructure and Policy Framework”.
Mohammed said with the 90 per cent production capacity of the country’s output crude production, 40 per cent would be on Premium Motor Spirit PMS (Petroleum) adding that additional refineries would be expected at the long and short term to increase the country’s refining capacity and domestic consumption.
He said crude oil theft had been a major challenged in the country, adding that the decline has been impacted on the average sale of government equity crude, with an average joint venture cash call budget of about $600 million per month.
Muhammed said that crude theft and pipeline vandalism and crude oil has impacted on production in the last four years in 2010 to 2014 from 2.4 million barrels per day in 2010 to about 2.0 million barrels per day in 2014.
He said that the significant production interruption is now a regular feature in Nigeria’s production profile, an average 250,000 bpd was deferred.
“At the price of $100 per barrel, this amounts to a loss of about $9.1 billion yearly.
“Crude theft from January to April 2015 stood 39.3 million barrels $3.9 billion at an average crude price of $97.9 per barrels.
“The solution lies with setting up of a critical infrastructure force with accountability measures, with a continuation of enlightenment, empowerment and enforcement of anti-sabotage laws.
“In a bid to address the current sub-optimal performance of domestic refineries, a new rehabilitation strategy has been adopted.”
Also speaking, The Managing Director, Total Exploration and Production Nigeria Ltd, Mrs. Elisabeth Proust, called on all stakeholders unlock Nigeria’s 133tcf of gas so that it can power the industry and boost the economy.
In his welcome address, the Chairman of SPE Nigeria Council, Mr. Emeka Ene, said that all contributions of stakeholders would be submitted to federal government for assessment as oil and gas is very vital to the economy of the country.


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