As it seems the country’s refineries continue to suffer so many challenges, experts have explained and proffered solutions in order to nip the challenges in the bud.
Speaking at a Media Workshop held yesterday in Lagos, A Senior Manager, Accenture Energy Group, Mr Michael Faniran explained that N276.872bn was spent on refineries between 2015 and 2018, adding that over $31.5m revenue was lost on a daily basis.
Michael also said that $36bn was spent on product importation between 2013 and 2017, adding that the industry contributes so much to the country’s revenue but just 10 percent to GDP.
The Expert said a lot of money is being made from crude export and product import agreement, however, lack of sincerity of purpose in ensuring sufficiency in local refining is hunting the country.
He also said that periodic disruption of crude supplies through pipeline vandalism makes it uneconomic to achieve feedstock for refining at a realistic cost.
Faniran, however, said that there is need to get the four refineries back to function optimally at their combined nameplate adds up to a capacity of 44,500bpd.
He said that there is need to make sufficient petroleum products available for local consumption and guarantee expansion as well as self-sufficiency.
The Manager also said that there should be divestment of 75 percent supermajority shareholding of Federal governments 100 percent ownership and control of NNPC refineries to competent and resourceful investors in the private sectors.
Michael added that the services of competent consultants on the valuation of assets.
Also speaking, The Managing Director, Subterra Energy, Mr Niyi Awodeyi, who spoke on crude oil theft, said that Federal Government should aggregate and assign refinery license holders to team up with crude oil owners in order to establish refineries, including modular ones.
Niyi said that a Community Engagement Committee comprised of stakeholders should be established to embark on massive enlightenment, rehabilitation and reinvigoration of the die-hard culprits of illegal refining and oil theft.
He noted that the passage and signing into law of PIGB, declaring a state of emergency and socio-economic amnesty should be held in high esteem.
While pointing out issues on crude oil theft, Awodeyi noted that lack of political will by successive administrations engender failure to implement policies and reforms instituted to restructure the oil and gas sector.
He added that consultants experienced delays with authenticating factual data and gathering industry-endorsed information.