Here is what NNPCL GCEO told the Senate hours ago as Platforms Africa’s report until something happens (RUSH) gains momentum
At Budget Defence Session, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, told Senate that Port Harcourt refinery will start operations December, Warri Q1 2024 but declared security as the only imoediment to the success story.
“The situation we have in Niger Delta in terms of security is a calamity. We don’t have that anywhere in the world. To engage non-state actors as last resort is abnormal,” he said.
Kyari also rejected a proposal by the Senate Committee on Appropriation to increase the crude oil production benchmark in the 2024 appropriation bill from 1.7 million barrels per day to 1.8mp/d.
Platforms Africa has begun a countdown on the December deadline given by officials to deliver the Port Harcourt refinery.
Giving an update on the repair of the nation’s four refineries, the NNPCL noss told the senators that the nation’s refineries would soon become operational and that it would lead to energy security.
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He insisted that the Port Harcourt refinery would come on stream in December, while Warri refinery would resume production in first quarter of 2024.
The NNPC GCEO gave December 2024, as production target of the Kaduna refinery.
The Chairman, Senate Committee on Appropriation, Solomon Adeola, had made a proposal regarding the oil benchmark at the Budget Defence session between his Committee and management of the NNPC.
The federal government in the appropriation bill estimated average crude oil production benchmark of 1.78m barrels per day and crude oil price benchmark of $77.96.
The NNPC GCEO told the Committee that the national oil company would stick to the benchmark approved by President Bola Ahmed Tinubu in the proposed budget.
Kyari, submitted that the crude oil price and production benchmarks were based on dynamics in the global oil market.
He said, “I will advise that we stick to the submission of Mr. President on the quota. There is no way we will get crude oil less than $70.
“Once economies are growing, there will be sustained demands for crude oil in our country and other countries.
“The estimates supplied by Mr. President is realistic. When we say production, we mean total production of crude oil and condensates.
“So we combine condensates and crude oil as total marginal production. So we know our estimates is realistic. There is no curtailment on condensates from OPEC.”
Kyari, however cautioned that security challenge in the Niger Delta Region could frustrate the projections of the federal government, citing crude oil theft.
The NNPC GCEO told the gathering of lawmakers and journalists that illegal crude oil bunkering in the oil producing states were alarming as he revealed that there were over 4,800 illegal connections on crude oil pipelines.
“The situation we have in Niger Delta in terms of security is a calamity. We don’t have that anywhere in the world.
“To engage non-state actors as last resort as solution is abnormal. But we have to respond abnormally. You have over 4800 illegal connections on our pipelines.
“That means, within every kilometer, you have an insertion.
“Even if you seal all the insertions, you can’t get what you want in terms of production. In the Niger Delta, people are coming from all parts of the country to do illegal refining. That’s why we engage locals to deal with it.
The countdown
Leading development-focused media group, Platforms Africa, has flagged off a countdown on the promised-date by the Nigerian government to deliver the Port Harcourt refinery.
Team Lead of the Africa-focused group, Adeola Yusuf, who announced this in separate interviews on TVC News Nigeria and News Central TV, declared that this social service is a part of Platforms Africa’s contribution to the envisaged success on the project’s delivery.
Nigeria secured $1bn Afreximbank loans for Port Harcourt refinery’s repair and president Bola Ahmed Tinubu, Minister of State for Petroleum Resources (oil); Group Chief Executive Officer, Nigerian National Petroleum Company Limited (NNPCL), Mallam Mele Kyari; and the Managing Director of the Port Harcourt Refinery have all promised that the asset will be delivered by December.
“Before now, there is a trust deficit in the systemn bouyed by failed promises by government officials to deliver on certain projects or polices. This time around, everyone that matters in the Port Harcourt Refinery rehabilitation has promised Nigerians that the project will be delivered by December, 2023. As a socially responsible media group, Platforms Africa has started a countdown as our contribution to the expected success,”Adeola Yusuf said
