Tag: refinery

  • Port Harcourt Refinery: Fuel importation to crash, says Chrome Oil Chairman

    Port Harcourt Refinery: Fuel importation to crash, says Chrome Oil Chairman

    Executive Chairman, Chrome Oil Services Emeka Offor has said importation of petrol will drop by about 40 per cent when critical unit of the Port-Harcourt refinery begins operation.

    Offor spoke with energy correspondents yesterday in Lagos.

    He said the critical constituent of the refinery, known as the Fluid Catalytic Cracking Unit (FCCU), would become functional next week.

    Offor added that the restoration work at the FCC had reached 98 per cent conclusion and would come on stream before end of the week.

    He said: “Hope of petroleum products supply stability is about to be accomplished as we at Chrome Oil Services company, the major contractors handling key rehabilitation of the Port Harcourt refinery will complete work on the FCCU.

    “The FCCU is about 98 per cent completed and we are hopeful that by next week it will be completed, and it will reduce 40 per cent on Federal Government importation of refined products.

    “The company is among other contractors carrying out overhaul of the facility as government takes giant steps to revamp the country’s four refineries in a bid to address the lingering fuel scarcity.”

    Offor said the unit would concentrate on the production of petrol, which would also go a long way to reduce importation.

    He added that it would then resolve the lengthened petrol scarcity.

    Offor said that lack of Turn-Around Maintenance (TAM) of the existing refineries in the country had contributed to the perennial fuel scarcity.

    “Over time, the refineries are working but below installed capacity, the last TAM was done in 2000 and this is an exercise that should be carried out every two years.

    “The inability of the refineries to refine at full capacity further complicated the fuel supply situation across major cities in the country,’’ he said.

    Offor attributed the problem to pipeline vandalism, an infrastructure which transports crude oil to the refineries and lack of TAM to sustain product refining.

    “We have outstandingly provided urgent situation repair work at both Kaduna and Port-Harcourt refineries.

    “The vital technical and engineering services we have turned to have guaranteed the continuous running of those refineries to make sure they are not totally grounded,’’ he said.

    He said over the years there had been tremendous inroads into the oil and gas industry through servicing of refineries, petrochemical plants and rehabilitation of jetties, tanks and installation of oil and gas facilities.

    “All these culminated in the award of the TAM contract of both the old and the new Port-Harcourt Refineries in Nigeria to Chrome Consortium.

  • PH Refinery: Fuel importation to drop – Chrome oil Chairman

    PH Refinery: Fuel importation to drop – Chrome oil Chairman

    Mr Emeka Offor, Executive Chairman, Chrome Oil Services, says importation of Premium Motor Spirit (PMS) would drop by about 40 per cent when critical unit of the Port-Harcourt refinery begins operation.

    Offor gave the assurance while speaking with energy correspondents on Sunday in Lagos.

    He said the critical constituent of the refinery; the Fluid Catalytic Cracking Unit (FCCU) would become functional next week.

    The FCCU is where Vacuum Gas Oil (VGO) and Heavy Diesel Oil (HDO) are cracked to obtain more valuable products.

    Such products include FCC gasoline used as PMS blend and Light Cycle as blend component for Low Pour Fuel Oil (LPFO) and Liquefied Petroleum Gas (LPG).

    Offor confirmed that the restoration work at the FCC had reached 98 per cent conclusion and would come on stream before end of the week.

    “Hope of petroleum products supply stability is about to be accomplished as we at Chrome Oil Services company, the major contractors handling key rehabilitation of the Port Harcourt refinery will complete work on the FCCU.

    “The FCCU is about 98 per cent completed and we are hopeful that by next week it will be completed, and it will reduce 40 per cent on Federal Government importation of refined products.

    “The company is among other contractors carrying out overhaul of the facility as government takes giant steps to revamp the country’s four refineries in a bid to address the lingering fuel scarcity,’’ he said.

    The company’s chairman assured Nigerians that when it becomes fully operational, the unit would concentrate on the production of petrol which would also go a long way to reduce importation.

    He added that it would then resolve the lengthened petrol scarcity.

    Offor said that lack of Turn-Around Maintenance (TAM) of the existing refineries in the country had contributed to the perennial fuel scarcity.

    “Over time, the refineries are working but below installed capacity, the last TAM was done in 2000 and this is an exercise that should be carried out every two years.

    “The inability of the refineries to refine at full capacity further complicated the fuel supply situation across major cities in the country,’’ he said.

    Offor attributed the problem to pipeline vandalism, an infrastructure which transports crude oil to the refineries and lack of TAM to sustain product refining.

    “We have outstandingly provided urgent situation repair work at both Kaduna and Port-Harcourt refineries.

    “The vital technical and engineering services we have turned to have guaranteed the continuous running of those refineries to make sure they are not totally grounded,’’ he said.

    He said that over the years there had been tremendous inroads into the oil and gas industry through servicing of refineries, petrochemical plants and rehabilitation of jetties, tanks and installation of oil and gas facilities.

    “All these culminated in the award of the TAM contract of both the old and the new Port-Harcourt Refineries in Nigeria to Chrome Consortium.

    Chrome is a consortium of firms headed by Chrome Oil Services – the first indigenous oil service firm to execute such a project.

    He said that with strategic alliances, joint ventures and consortiums with major international engineering and construction companies,
    Chrome Oil Services was poised to become a vital contributor to Nigeria’s infrastructure.

    NAN reports that the old refinery was commissioned in 1965 with current nameplate capacity of 60,000 barrels per stream day (bpd).

    The new refinery which commissioned in 1989 with an installed capacity of 150,000 bpd brings the combined crude processing capacity of the Port-Harcourt Refinery to 210,000 bpd.

  • US offers $.997m training grant to Dangote refinery

    The  United States Trade and Development Agency (USTDA) has signed an agreement with Dangote Group for a grant of $997,443 for the training of  Dangote Oil Refining Company’s per sonnel, a subsidiary of the Group.

    The USTDA grant will fund a multi-year programme to train over 100 Dangote Company staff on refinery fundamentals. Through the training, the Dangote staff will be able to operate and maintain the Greenfield Refinery in Lekki, Lagos.

    The President of Dangote Group, Alhaji Aliko Dangote, said during the ceremony that the refinery has installed refining capacity of 650,000 barrels of oil per day (bpd) and will be built at a cost of $9 billion.

    Dangote said: “Just over a year ago, with our decision to to invest in a $9.0 billion 650,000 bpd refinery project, we decided to address the paradox of Nigeria being one of the world’s largest producer and exporter of crude oil but yet one of the largest importers of refined products. Today the project has commenced and we expect to be in production by first quarter of 2018.

    “For such a high tech project investment in getting the right quality of human capital to run the plant is considered to be possibly the most critical success factor for the multi-billion dollar project. We are therefore, most grateful for the generous grant of USD 997,447 from the USTDA towards the training of some of the operators needed to successfully operate and maintain our Greenfield 650,000 bpd capacity refinery at Lekki. This grant from USTDA is consistent with her history of support for infrastructure development in Nigeria.”

    USTDA Deputy Director Enoh T. Ebong signed the grant agreement  with President of the Dangote Group,  Dangote. Ebong said: “USTDA is pleased to support the Dangote Oil Refining Company’s efforts to increase Nigeria’s domestic refining capacity. This programme builds upon USTDA’s long history of support for vital infrastructure development in Nigeria.”

    Acting United States’ Consul-General Dehab Ghebreab said the USTDA’s support for the project is an example of the strength and depth of the U.S.-Nigeria bilateral relationship, adding that it will go a long way in laying a ground work for monumental growth in the country.

    “I believe that when government and private sector get together, great things can happen. The U.S. government’s goal is to facilitate transactions that are beneficial to both countries and there is no better example than this project. I am pleased that USTDA could assist here,” she said.

  • A case for modular refinery operators

    SIR: As President Muhammadu Buhari settles down to the serious business of governance, one key area that should quickly engage his attention is the petroleum industry. The reason for this is not farfetched. As a major player in the global oil market by the virtue of our natural crude endowment, it is ironical that the country is not only an importer of petroleum products, but also, experiences acute shortage on a constant basis.

    Due to the heavy dependence on the importation of petroleum products to augment local production, marketers have exploited the situation to perpetrate massive fraud as the subsidy fraud imbroglio showed. At will, they also hold the nation to ransom by withholding products from the market.

    To address the ugly situation, it has been suggested over the years that local refining of the crude oil is the most sustainable option. However, the combined capacity of the four refineries owned by the Federal Government is far below the daily oil requirements.

    The involvement of the private investors in establishing refineries becomes imperative. The Department of Petroleum Resources (DPR) has issued a number of licences to various companies who showed interest over the last 10 years. Despite this, no privately-owned refinery is operational in Nigeria as of today.

    A lot of factors are responsible.  Many of the licence holders have accused DPR of shifting the goal post in the middle of the game concerning sourcing of crude, the major raw material. The initial arrangement was that there would be a sovereign guarantee of steady supply of crude by DPR to Nigeria-based refineries. A situation where no priority is accorded and operators would have to rely on off-shore crude sourcing is a major worry. Instead of selling crude to foreigners as a matter of priority, operators are demanding that national interest and investors concern should take precedence in arriving at a decision.

    The current oil subsidy regime by the Federal Government also constitutes a big headache for intending refinery owners. Except for diesel, all other petroleum products are currently being sold at a highly subsidised rate. With the possibility of private refinery operators production cost being higher than the current subsidized rates, there are fears that they might run into a huge loss if they invest in the refinery business. The operators are waiting to see how the new government addresses this disincentive.

    Two options are open for considerations: One, government assures operators of buying their products at the production cost so they could break even. Two, the sector is deregulated and allow market forces to determine pricing.

    Another huge concern is that of infrastructural challenge. Setting up a refinery comes with its peculiar challenges. In most cases, refineries are sited in locations that are far from city centres, where there are deficit in terms of infrastructural provision. Good access roads, constant electricity supply, hospitals, schools, among others are some of the facilities that the operators would expect the government to provide in order to support the social and economic needs of the refineries and their host communities. Leaving the investors to provide all these facilities aside the huge capital requirement of setting up the refineries would be highly discouraging.

    A critical area that government could help the operators is that of financing. The current high interest rate of domestic borrowing will surely have a negative effect on product pricing. The ordinary citizens will bear the brunt of high product price. Like the government did in some critical sectors like entertainment and aviation, operators have suggested an intervention fund would help a great deal.

    Government can also provide encouragement by granting generous waivers for the importation of needed materials and equipment for the projects.

    For the country to jump start the country’s oil industry and guarantee the availability of petroleum products for the citizens at all times, the establishment of local refineries is crucial. Government needs to support the licensed operators through the provision of conducive environment for them to thrive, bring succour to Nigerians and contribute substantially to the country’s economy by way of job creation, among other benefits.

     

    • Charles Daniel

    Lagos.

  • Abuja power station, refinery  delayed by funds, others

    Abuja power station, refinery delayed by funds, others

    Lack of support from banks, bureaucratic bottlenecks, infrastructural deficit in the host communities, among others, are responsible for the slow pace of work at the proposed power station and modular refineries in Abaji, the Federal Capital Territory, the Managing Director, Jehata Nigeria Limited (owners of Abuja Power Station in Abaji), Jameel Jammal, has said.

    He told The Nation that the resolve of the company to build the power station and the refineries was borne out of the desire to improve the energy needs of Nigerians, adding that funds have hindered the project.

    He said local banks have refused to show interest in the project by not lending to the company. “One of the problems facing the project is funds. Banks are not ready to make funds available for the project. Besides, they are not ready to assist by way of standing for the company as guarantor. When you are bringing foreign investments into the country, you need a local bank to stand for you to guarantee the foreign loans you are going to use for the project.  But, this was not forthcoming,” he said.

    He said the company is awaiting  the government to approve the land for the project. “We have been waiting for approval of the land by the management of the Federal Capital Territory.  We want the Minister of Federal Capital Territory to intervene to get the land. We are not asking for the land for free.  The communities in which the land is located are cooperating with us. They have welcomed us. But getting approval is a problem.  Besides, there are no basic amenities in the area. Anytime there is a rain, the inhabitants of the area cannot come out because of environmental damages from flood. They are happy that we are coming to build a new town for them. A town that would boast of electricity, water, and gas, among others.”

    Jammel said the modular refineries will refine 25,000 barrels of crude oil per day, adding that the refineries will have five different lines of production. “There would be kerosene, Premium Motor Spirit premium motor spirit (PMS), AGO (diesel), jet fuel, and gas section. It will be a big project covering expanse of land. The stage we are is getting the land. We are just buying time on this issue. We believe that there would be a change in the FCT administration; we believe that the new administration when it comes would help us. We have gone to the Presidential Task Force on Power to lay our complaints. Till now, no positive response, the whole project is being frustrated,” he added.

  • NSCDC uncovers illegal refinery in Kogi

    NSCDC uncovers illegal refinery in Kogi

    The Nigeria Security and Civil Defence Corps (NSCDC) in Kogi State, at the weekend, uncovered an illegal refinery in Achuze, a border community between Kogi and Edo states.

    NSCDC said the refinery, which had an administrative building, a restaurant and a 150,000 litre-capacity petrol reservoir, was burnt.

    The State Commandant, Dayo Adesuyi, who led the operation at the weekend, said about 80 drums of crude oil were also burnt.

    He said the operators of the refinery engaged his team in a gun battle. One of the suspects was arrested but the others escaped.

  • NNPC increases refinery utilization capacity to 60%

    NNPC increases refinery utilization capacity to 60%

    •Attains 2.5m bpd production

    The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mr. Andrew Yakubu, yesterday disclosed that the four refineries now have 60 per cent refining capacity utilization.

    Yakubu who spoke at the capacity building workshop for media practitioners themed: “The role of NNPC in the Nigerian economy,” held in Uyo, Akwa Ibom State, explained that refineries have capacity to refine more crude but there is currently limited supply due to pipeline vandalism.

    The NNPC chief also took advantage of the workshop to give account of his stewardship in the office in the past two years. He said that the process of rehabilitation of the three refineries is underway, adding that there has been a procurement of long lead items. He noted that the rehabilitation of Port Harcourt refinery has begun while awaiting the commencement of the entire rehabilitation programme.

    He explained that major works have been carried out to ensure continued operations of the refineries. He said: “The capacity utilization of the refineries as we speak today is 60 per cent of their nameplate. The 60 per cent nameplate capacity is not because the plants cannot take more but because we have this challenge with crude oil supply.”

    He noted that the corporation has had recourse to the original builders of the refineries for benefits of their experience and expertise in terms of rehabilitation and equipment provision for the entities to derive maximum value from the money to be spent.

    Yakubu also said that oil production has increased from 2.3 million barrels per day (mbpd) to 2.5 mbpd. He said the production feat was attained despite challenges of illegal oil bunkering and theft in the sector. “In line with Federal Government’s aspiration to transform the industry and especially NNPC into a competitive oil and gas company, on assumption of office, we met and set up strategies to improve oil and gas production. On the average today, we are able to maintain 2.5 million barrels per day production.

    “Although we have serious challenges with crude oil theft and bunkering from our major trunk lines, we have been able to maintain 2.5 million barrels per day production.” And these strong lines are mainly in the west, east and the centre of the country.”

    He also noted that gas flaring has been reduced to 10 per cent from 30 per cent a few years ago. He noted that the period within which he has served as group managing director, has witnessed improvement in the performance of the company.

    He said: “As at today, NPDC is proudly the fifth largest producer of crude oil as well the leading gas supplier in the country. Its production increased from 70,000 barrel per day when we came in and as at today we have about 170,000 barrel per day production and aspire to increase to 250,000 bpd by 2020. It has reserves of 2.1million barrel also.”

    He also said that the company has increased its gas contribution to the domestic market to over 570 million standard cubic feet per day.

  • Joy, pain of hosting a refinery

    Joy, pain of hosting a refinery

    Firms and their host communities are not always the best of friends. But at Rido community, hosts of the Kaduna Refining and Petrochemical Company (KRPC), residents and the refinery workers are not at daggers drawn, either.

    True, the poverty level in the community is quite high, but the farming community has no doubt benefitted from the firm, even though sometimes it also has some grievances.

    Youths of the community and others in the operational area of the refinery are currently benefiting from oil firm’s youth empowerment programme, but the residents have also lived with pollution from the activities of the refinery.

    An executive director of the company, Idi Mukthar told The Nation that what the company flares is not gas, but carbon which is not harmful to the human system. He said that the company is aware of the community’s complaint and is working round the clock to address it.

    He pointed out that the black smoke coming out from the refinery is the result of a breakdown of one of the compressors which has been identified and is being corrected by the company. He said further that the company constantly mobilises a team of medical experts, officials of the Safety and Public Affairs Department of the company to enlighten the host community on their operations, and what to expect.

    He said: “We have sunk a borehole for them because we are aware that often, the carbon settles on the water and that is not good for them. So, we gave them a borehole so that they only have to get water when they need to use water and don’t have to store water from the stream. However, we have contracted someone to clean up the stream. At the moment, we have people working round the clock to clean up the carbon”.

    Even though members of Rido are quick to point at some of the benefits they now enjoy from the company. Some of their youths have been beneficiaries of the Youth Empowerment scheme initiated by the immediate past Managing Director of the company, Bolanle Ayodele. Some

    other things which the company has provided to the community include a bore hole, blocks of classrooms and a health centre among others, they are not happy with the level of pollution they have to grapple with daily. Mukthar said that the borehole, classroom and health centre is

    not the only intervention of the company in the community. He disclosed that at every stage, the company regularly carry out immunization in the communities. He said “every time we immunize our staff, we do the same thing for the community. In fact, the immunisation is not limited to children alone. At every stage, we cover about 5000 people in the host communities. We have also provided electrification for some of the communities”.

    The Manager Public Affairs of the company, Abdullahi Idris also told The Nation that the company has a standing community relations committee made up of about 11 district heads and some management team from the company. According to him, the committee meets regularly to articulate the needs of the communities which are prioritised in line with the budget of the company.

    “When we meet, they will come with their needs and we discuss them and see what can fit into our budget and we tell them. This has worked very well”, he said.

    In spite of that, the community is worried about the double flame from the company anytime they are in production. Some members of the community spoken to by The Nation admit that the company has done so much for them, but claimed that the gas emitted from the refinery on a daily basis is polluting their environment and doing a lot of harm to their livestock, farmlands and water bodies. Iliyasu Elijah, a resident of the community told The Nation that their farmland has been subjected to all manner of chemicals from the refinery.

    He said: “This is where we were born but our farmlands are now suffering. We can’t even drink water from our rivers anymore”.

    Michael Waziri, another resident of the community corroborated Elijah’s position, saying, “we the poor are tired of complaining but honestly it’s not funny at all. It is not in doubt that have provided a few amenities for us here, but that is not enough compared to what they are subjecting us to daily. Take a good look at this community and tell me if this is what we deserve. You can see poverty written all over the place. However, we hope that with the construction of the Eastern byepass, the government will remember us and compel the refinery to do something better for us”.

    Another resident, Luka Makama also spoke in similar vein. According to Makama, the community has lost several children to pollution in the past and are not ready to loss more. He said, “we have lost several children in this community to pollution. The last time they gave each household 3 packs of milk. If they are to be trusted, they should be giving us milk every month”.

    On her part, Jumai Jatau said that “getting food from our farms now is a difficult thing, not to talk of drinking water. Everybody in this community now has catarrh due to the black emission”.

    However, Bature Bidam is more militant in his response, saying, “Very soon we will block the roads and nobody will be allowed access into the refinery again until the issue of pollution is addressed”.

    Similarly, Abubakar Shehu who said he lives close to the refinery fence said that the gas being flared daily has saturated the area and is causing serious health problems to them.

    “People who are working there are big men and women driving jeeps and others expensive cars. But do they want us living in our poor ancestral homes to die? We allow government to establish the refinery here and not to send us out of this place. Our children are not working there except the Rido community chief who has betrayed us and sold us out to Kaduna refinery and so he can’t even defend us. The emission of the carbon dioxide is a serious disaster on us. In the morning and evening the gas always descends on the whole environment, making it difficult for us to breathe, it is also the same thing in the evening.

    And it has a very powerful unbearable odour. If we are eating, it is as if we are swallowing the substance along with the food.”

    Another resident, Suleiman Joseph expressed fear that with the increasing level of awareness by the youths, they may not be able to hold on for too long without taking steps to speak out against the pollution. He said, “the residents might not be able to bear it for long. We are calling on government and management of Kaduna Refining and Petrochemical Company to take immediate action to stop this flaring, because what we are inhaling in this place is poisonous and is capable of killing us. Some people in our area who rented houses have left but the landlords have no place to go”.

    Some other members of the community told The Nation that credit must be given to the company for making effort to give them a good life.

    Some of them said that regularly, the company brings carton of milk to distributed to children in the community, adding that at the last exercise, about 700 cartons were given to them in addition to over 30,000 exercise books distributed quarterly to primary schools in the host communities. As at the time of this report, the company was making arrangement for another set of books to be distributed to the selected schools.

    A visit to the community revealed that apart from the gas emission from the refinery, Rido community, like many others have remained the most poorest within Kaduna metropolis and environs while the refinery makes billionaires of other people. The community can best be referred

    to as a slum suffering from the constant shadow of unrelenting noxious fumes.

    investigation however revealed that Nigeria is one of the few countries in the world that still flare its gas while other nations are making billions of dollars from it. In other words, the flaring of

    gas by oil companies in the country is not limited to the Kaduna Refining and Petrochemical Company along. It is believed to be more common in the Niger-Delta region where cities like Warri and Port Harcourt also experience the same hazards.  It is believed that Nigeria is flaring between 1.3 and 1.4 billion cubic feet of gas daily, second only to Russia which flared three times the size of what Nigeria burns.

    Environmental experts believe that the gas flaring by Nigeria oil companies is doing so much damage to the environment, pointing out that the damage on the environment, to the land, water habitat and human beings cannot be quantified. An environmentalist who would not want his name in print told The Nation that even though there is still ongoing research on the effect of gas flaring on human beings, “the effects are sometimes visible on people residing in areas close to refineries. The sign and symptoms include vomiting, cancer diseases, lung diseases and Asthma.”

    It is believed that Nigeria is losing lots of gas daily, including carbon monoxide, carbon dioxide, sulphur and nitrogen oxide, which could be channelled to positive use by Nigerians. It is also believed that rather than trapping these gas substances for use, Nigeria allows them to be flared while importing them for use in various aspect of the country.

     

     

     

     

     

     

    These gases are also believed to combine with rainfall to cause serious damage to the soil.

    Public Affairs Manager of the Kaduna Refining and Petrochemical Company, Mallam Abdullahi Idris was quoted as saying that the company was doing everything humanly possible to ensure that the community does not suffer any damage. He was also quoted as saying that the community have benefited from initiatives of the company which include the Youth Empowerment scheme introduced about five years ago and is currently being modified to make it more effective. He said that at the moment, the company has contracted those who trained the youths in the various vocations to mentor them, set them up and monitor them for six months. He said “during the first two exercise, we realised that it was not making the impact we expected as only about 40 percent

    utilise the take-off grant they were given. Right now, what we do is give the grant to the trainers to set them up and we believe that will make a bigger impact. Today, the KRPC YESEP is a house hood name in KRPC. We believe that Corporate Socia Responsibility goes beyond sinking borehole. We also believe that if every company assist in providing skill for the youths, we will greatly reduce the level of unemployment in the country. Idi Mukthar who collaborated his spokesman said that many organisations including government has come forward to either learn from them or collaborate with them in carrying out such training.

     

  • Delta community berates Warri Refinery over fallen bridge

    Delta community berates Warri Refinery over fallen bridge

    The people of Ubeji, a host community to the Warri Refining and Petrochemical Company, have raised the alarm over the devastation on their livelihood by the company’s blockade of the water channel leading to the community.

    The latest face-off between WRPC, a subsidiary of the Nigerian National Petroleum Corporation (NNPC), and the community is over the repair of a collapsed bridge linking WRPC’s refinery to the NNPC Loading Jetty.

    Several months after the bridge accident, which resulted in at least one death, the people of Ubeji lamented that the company has failed to fix the bridge.

    More worrisome for them is the company’s use of a pontoon barge to cross the river at the detriment of fishing and economic activities in the Itsekiri community.

    The Ubeji Community Youth President, Mr Philip Bomele, in a statement in Warri, said: “Over eight months ago, the bridge that connects the WRPC Main yard to the NNPC Loading Jetty along the Ubeji Community Creek collapsed.

    “The cause (of the collapse) we discovered was as a result of poor maintenance culture exhibited by WRPC and over loading of trucks used at the Jetty above the maximum load bearing capacity of the bridge.

    “In trying to make the NNPC Loading Jetty accessible for their operations, WRPC used a pontoon barge to block the channel linking Ubeji Community, thereby rendering the community inaccessible.

    “This has caused serious environmental and economic failures as there is no free flow of water and the fishermen and traders from the community cannot go about their fishing and trading activities since the blockage caused by the pontoon barge.”

    The community youth leader lamented that series of complaint to the management of WRPC over the losses the community had been experiencing since the blockage, failed to move the oil firm to address the plights of his people.

    “Ubeji Community, a peace loving community, is calling on the Federal Government, Delta State government and well-meaning NGOs, humanitarians and Nigerians to come to its aid to prevail on WRPC to remove the pontoon barge to allow free passage of it Indigenes to carry out their various activities.”

    He also appealed to the NNPC subsidiary to heed to their cries and protestations by stopping perceived marginalisation of host communities and depriving them of their rights to freedom of movement.

    Bomele lamented that the continued blockade of the water channel was costing families who rely on fishing, trade and other businesses on the river for their livelihoods.

    “The sole source of livelihood of most of our people is fishing and trading. When their only access to market and fish is blocked for this long, how are we supposed to survive, how are we expected to send our children to school?”

    He therefore appealed to WRPC to take urgent steps to solve the problem before the situation gets out of hand.

    The Manager, Public Affairs, Mrs Emmanuella Ate, could not be reached for comment at the time of this report. A source in the Public Affairs Department, who spoke on condition of anonymity, said the company was working towards removing the offending pontoon barge from the water.

    “We are aware of the complaints from the Ubeji people. I do not know when it will be done, but what I can tell you is that there is plan to fix the problem as soon as possible,” the source added.

     

  • Refinery privatisation: Senate urged to amend bill

    Refinery privatisation: Senate urged to amend bill

    To ensure that Nigerians are favoured when the four refineries are privatised next year, experts have called for a modification of the bill on investments in the industry.

    Part 1 Section 3 of a Senate Bill 176 ensures that 50 per cent refining capacity should be domiciled in the country. The bill further states: ‘’Nigerian personnel shall constitute a minimum of 75 per cent of the investing company in the petroleum industry in accordance with the law.”

    The President, International Association of Economics Energy (IAEE), Prof Adeola Akinnisiju, said a modification of the bill was necessary in view of the proposed privatisation of Warri, Kaduna, and Port Harcourt refineries.

    He said Nigerians would have enough stakes when the refineries are privatised. ‘’I am okay by the content of the bill because it’s talking about local content initiatives,” he said.

    He, however, argued that no ground would be lost if the bill is modified. When this happens, refinery capacity and petroleum activities are going to be above 75 per cent as contained in the bill. This implies that more Nigerians are going to have controlling shareholdings in the refineries.

    ‘’At present, we depend on importation of petroleum products into the country. By modifying the bill and subsequently privatising the refineries, it means there would be increase in local participation in the industry. This, on condition that, a transparent process is adopted by the Bureau of Public Enterprises,’’ he added.

    According to him, the power sector reforms have set the tone of what to expect in the petroleum industry. The reforms, he said, have resulted in the sale and subsequent ownership of assets of defunct Power Holding Company of Nigeria (PHCN) by Nigerians.

    ‘’We should expect a situation whereby the refineries would be own 100 per cent, once the National Assembly is able to amend the bill. Like what happened in the power sector where Nigerian companies acquired the PHCN’s assets, the same thing is expected when the refineries are privatised,’’ he added.

    Also, the Chairman, Petroleum and Gas Workers Senior Staff Association of Nigeria(PENGASSAN), Mr Folorunso Ogini said, amendment of the bill is good and capable of encouraging local initiatives. He said Nigerians would leverage on the bill to ask for more stakes when the privatisation process starts.

    He cautioned the government on the issue, noting that efforts to sell the government enterprises failed in the past.

    “What happened to the British Airways? What happened to the Nigerian Telecommunication Limited (NITEL) NICON Insurance and other publicly-owned enterprises that the government intended to sell? They are dead because the government failed to follow due process. So, the issue of refineries must be handled with caution to achieve success, ’’ he said.