Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has asserted his firm stance on holding the Nigerian National Petroleum Company Limited (NNPCL) accountable for the completion dates of the rehabilitation of Nigeria’s dormant refineries.
The minister made this statement while addressing questions from State House Correspondents at the conclusion of a three-day retreat at the Presidential Villa.
Responding to inquiries about the expected completion dates of the refinery rehabilitation, Lokpobiri emphasized the progress made, especially in Port Harcourt. He stated that Phase 1 of the Port Harcourt refinery is set to be operational by the end of this year.
He further clarified that the responsibility for the rehabilitation lies with NNPCL, and he is closely monitoring their progress.
The Warri refinery’s Phase 1 is also anticipated to be operational by the year’s end, with Phase 2 and 3 in Port Harcourt slated for completion next year.
Additionally, the Kaduna refinery is expected to be ready by the end of the following year.
Lokpobiri highlighted his hands-on approach to oversight, mentioning his regular visits to the refineries, sometimes unannounced, to ensure accurate assessments of the rehabilitation process.
He emphasized that he holds NNPCL accountable for their promises and expects them to deliver on schedule.
The minister reiterated the importance of effective production to resolve the nation’s fuel crisis, emphasizing the need to increase crude oil production significantly.
Addressing the challenges faced by the industry, Lokpobiri acknowledged that low production levels were a result of insecurity issues, lack of investments, and other concerns. He underscored the ministry’s efforts to address these issues, instilling confidence in international oil companies to reinvest in Nigeria.
The minister stressed the need for the country to produce sufficient crude oil to refine domestically, emphasizing the significance of both the big refineries and modular refineries in addressing the nation’s fuel needs.
Lokpobiri emphasized the liberalization of the licensing process, ensuring swift approvals for credible applicants. He warned against misuse of licenses, indicating that unused licenses would be canceled promptly.
The minister’s proactive approach aims to encourage investments and expedite the establishment of refineries to boost domestic production and reduce dependence on imported petroleum products.
Background:
Nigeria possesses four refineries, with two located in Port Harcourt and one each in Warri and Kaduna.
Despite previous Turn-Around-Maintenance (TAM) efforts, these refineries have remained non-operational for several years, leading to the importation of petroleum products and significant revenue losses for the nation.
The Nigerian government, under former President Muhammadu Buhari, pledged to revitalize the refineries to optimal capacity, aiming to end the importation of refined fuel.
However, deadlines set for the refineries’ full production capacity were not met, leading to substantial financial investments without commensurate results.
Efforts to rehabilitate the refineries continued, with projects approved for the Port Harcourt, Warri, and Kaduna refineries.
Despite assurances from previous ministers, including Timipre Sylva, the government faced challenges in meeting its set deadlines.
Minister Lokpobiri’s current oversight strategy aims to expedite the refinery rehabilitation process and ensure accountability within NNPCL, reinforcing the government’s commitment to achieving self-sufficiency in the refining sector.
