Oil
PH Refinery rebounds with 17m liters per day production
…..Deplores high rate of pipeline vandalism
LAGOS – The Nigerian National Petroleum Corporation, NNPC, has recorded initial successes in the highly expected rehabilitation and upgrade of the 210, 000 barrels per day plants of the Port Harcourt Refinery Company (PHRC) with the fixing of the Nitrogen Plant that has been down for over one year.
However, the upbeat in the refinery operations is doused by the rising cases of vandalism on the crude supply and product evacuation conduits connected to the refinery, resulting in suboptimal capacity utilization.
Checks revealed that maintenance work at the refinery has translated to significant production upside with total volume output of 17 million liters of different products per day.
Corporate spokesman for the refinery, Mr. Ralph Ugwu, disclosed that the company was currently churning out about 7.5 million litres of premium motor spirit (PMS) also called petrol, three million litres of dual purpose kerosene (DPK) and 6.5 million litres of automotive gas oil (AGO) also called diesel at the current capacity utilization.
Mr. Ugwu said the output from the refinery was contributing to the nation’s petroleum product supply pool as part of concerted efforts of NNPC business arms to guarantee availability of fuel for social and economic activities.
The refinery rehabilitation programme which is part of a comprehensive plan to improve local production of petroleum products aims to displace significant volumes of costly imported products, crash government’s subsidy bills and optimize capacity utilization in the domestic refining industry.
In a move to recover full nameplate capacity of the plant, Mr. Ugwu, disclosed that the management of PHRC activated processes to bring the critical units of the plant back into operation.
He said that the fixing of the Nitrogen Plant has paved way for maintenance and streaming of other vital sections of the refinery, including the Catalytic Reforming Unit (CRU) and Naphtha Hydro-treating unit (NHU).
With re-streaming of the three critical units, he explained, over 30 percent capacity would have been recovered to relaunch the entire refinery into full operation.
Mr. Ugwu stressed that the quantity of products from the Port Harcourt Refinery would increase by about 30 percent after the planned turn around maintenance (TAM) and rehabilitation in the year.
Minister of Petroleum Resources, Mrs. Diezani Allison-Madueke, had commissioned the Kalu Idika Kalu-led committee to conduct a capacity audit on the nation’s refineries after which she declared arrangements to recover the nameplate capacity of the plants.
The Group Executive Director, Refineries and Petrochemicals, NNPC, Engr. Tony Ogbuigwe, in his congratulatory message to Management and Staff of PHRC, commended them for their commitment to duty.
He assured them of necessary support in sustaining operations at the plant.
Managing Director of PHRC, Engr. Ian Udoh, also congratulated staff for being steadfast, focused and dedicated to duty in spite of daunting challenges.
He attributed the modest success achieved to the solid foundation and pragmatic planning put in place by his predecessor Engr. Tony Ogbuigwe, who is now the Group Executive Director Refineries and Petrochemicals.
He urged staff to sustain the tempo not withstanding the challenges crude supply disruptions due to the activities of crude oil thieves and vandals.
He noted that 199 incursions on the seven kilometer product line from Refinery to Okrika Jetty were recorded in 2012 alone, resulting in intermittent operations of the Refinery due to usage constraints.
He also pointed at other concerns over the pipeline breaks to include environmental pollution and degradation, huge economic loss and possible fire outbreak in contiguous local communities.
It will be recalled that such unwholesome acts have in the past led to the fire outbreaks that completely destroyed the Okrika jetty which has been recently reconstructed at huge cost and re-commissioned by the Honorable Minister of Petroleum Mrs.Diezani Alison-Madueke.
He said a combination of the challenges of incessant menace of crude oil line breaks and crude oil drought have often resulted in operations disruptions despite the readiness and availability of the refinery’s process units.
The menace of pipeline vandalism, he also pointed out, hindered evacuation of refined products from the refinery and risk exposures as communities encroach on the pipeline right of way, makes surveillance and policing difficult.
Based on the above, PHRC has recently embarked on massive enlightenment campaigns in its various host communities stressing on the dangers and effects of pipeline vandalism and product adulteration to health, safety, environment, machinery and the economy.
Mr. Ugwu declared that management of PHRC was passionately appealing to opinion leaders and government agencies to come to its aid in curbing the activities of vandals to enable it deliver on its mandate of ensuring optimal and sustainable production of refined petroleum products for the benefit of all Nigerians.
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.
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