In view of the ongoing rehabilitation of refineries, tell us
about the efforts so far made by NNPC and other oil firms to protect pipelines
and tackle oil theft in Nigeria?
The security and maintenance of our product and crude
transfer pipelines to terminals and refineries will fall under the purview of
Build, Operate, and Transfer (BOT) concessionaires. This strategic arrangement
aims to mitigate third-party incursions and sabotage, ensuring the integrity of
the pipelines. We have also enhanced the security architecture by working with
all branches of the military, from the Navy to the Army, the Air Force, the
police, the Department of State Service (DSS), and the Nigeria Security and
Civil Defence Corps (NSCDC).
The NNPCL is also actively combating oil theft in Nigeria
through collaborative efforts with private security firms and oil-producing
communities. This strategic partnership aims to enhance surveillance and
security measures to curb illicit activities. By engaging local communities and
leveraging private security expertise, NNPC reinforces its commitment to
safeguarding national resources and preventing unauthorised activities in the
oil sector.
Are there ongoing efforts to rehabilitate pipelines and
other assets to enhance the distribution of petroleum products nationwide?
The Nigerian Pipelines & Storage Company (NPSC), a
subsidiary of NNPCL, is actively engaged in the rehabilitation of pipelines and
storage terminals across the country. In 2021, the Group Chief Executive
Officer of NNPCL emphasised the adoption of the Build, Operate, and Transfer
(BOT) model for this initiative.
The competent project companies would be selected through an
open competitive bidding process. The chosen BOT contractor will be responsible
for financing the project, operating it, and, after recovering the investment
and achieving the targeted profit, transferring the asset back to NNPC/NPSC.
Revenue for the BOT contractor’s recovery and returns will be generated through
tariffs during the asset’s operation.
NPSC is currently in the final stages of concluding
contractual arrangements with the BOT concessionaires. The implementation and
execution of these contracts are anticipated to significantly improve the
reliable distribution of petroleum products nationwide.
With vandalism and oil theft, do you think Nigeria can still
meet its oil generation quota and distribution target?
What I can tell you is that the NNPCL has been involved in
various initiatives to increase oil and gas production in Nigeria. These
efforts typically include collaborations with international oil companies,
investment in exploration and drilling activities, and implementing technology
upgrades to enhance efficiency. We are also investing in new assets and
enhancing idle ones.
In its efforts to further boost natural gas utilisation in
the country and enhance Nigeria’s gas revenue, apart from crude, NNPCL signed
two major agreements to deliver Liquefied Natural Gas (LNG) to the domestic gas
market and the international LNG market.
During two separate signing ceremonies held on the sidelines of the
United Nations Climate Change Conference (also known as COP28), NNPCL signed an
MoU with Wison Heavy Industry Co. Limited, a Chinese company, for the
development of floating LNG projects in Nigeria, targeting the international
LNG market.
Also, NNPC Prime LNG Limited, an arm of NNPC Trading
Limited, signed a supply, installation and commissioning agreement with SDP
Services, an independent oil and gas company, for a 421-tonne per day LNG
project targeting the domestic LNG market.
The Floating LNG MoU was signed by the Executive Vice
President, Gas, Power & New Energy, Olalekan Ogunleye, on behalf of NNPCL
and Mr Kai Xu, Managing Director of Wison Limited, on behalf of his company.
Both parties agreed to work together to chart a roadmap for the project
development that will lead to an investment decision.
Similarly, the Small-Scale LNG (SSLNG) project agreement was
signed by the Managing Director of NNPC Trading Limited, Mr Lawal Sade, on
behalf of NNPC Prime LNG Limited, while Mr Abhinav Modi, Managing Director of
SDP Services Limited, signed on behalf of his company. The SSLNG project, which
will be located at Ajaokuta in Kogi State, will ensure the efficient supply of
LNG to the Autogas/Compressed Natural Gas (CNG) and industrial/commercial
customers nationwide. The LNG Project is expected to be operational by December
2024.
As reactions continue to trail the announcement that the
Port-Harcourt refinery has been completed, kindly provide an update on that?
In a month-long documentary series, NNPCL has meticulously
showcased the progress of PH Refinery (OPHR) rehabilitation, emphasising
completed works, equipment installation, and mechanical completion. Of
significant note is the rehabilitation of the 60,000 BPSD OPHR, with the NNPCL
affirming that the mechanical completion phase would be concluded by December
2023, a testament to the company’s dedication to its commitment to the Nigerian
people. That happened.
The current phase involves rigorous testing, leak checks,
line-blowing, drying, flushing, steam out, and equipment calibration before the
introduction of hydrocarbons. These meticulous checks align with global best
practices and are deemed essential prerequisites for the refining process.
Emphasising safety protocols, the testing for air in the lines is underscored
as vital to prevent potential explosions, adhering to the highest international
standards.
Simultaneously, I am glad to inform you that another
appreciable progress has been made as the Warri refinery is nearing its
mechanical completion phase. Despite the eagerness to complete the project,
NNPCL, as a global energy company, prioritises the thorough execution of all
necessary checks and testing, reinforcing its commitment to refinery excellence
on a global scale.
We recognise the historical distrust resulting from years of
refinery neglect, we want to assure Nigerians that, this time, our commitment
is genuine. We are fully prepared to guarantee energy security for our nation.
The major blessing is the commitment of President Bola Ahmed
Tinubu. Unlike what used to happen in
the past where continuity of projects suffered mishaps as a result of a new
government jettisoning pre-awarded contracts, our president has kept
faith. When he took over, he did not
order work to stop. Rather, he
encouraged us to get going and deliver. He is committed to ensuring that the refinery
is delivered so that Nigerians can benefit from the humongous outcomes it would
generate.
Then we also have to understand that my boss, Mele Kyari, is
a man who knows what he is doing and the fact that last Christmas season did
not witness scarcity of products demonstrates the type of results you achieve
when you have a president and a GCEO who are operating from the same page.
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