Th e Nigerian National Petroleum Corporation (NNPC) has revealed that no fewer than 28 fi rms have applied to fi nance the Turn Around Maintenance (TAM) of the nation’s three refi neries in Port Harcourt, Warri and Kaduna, respectively.
Th e Corporation said already the more than 28 Expressions of Interest received so far from various fi rms for the fi nancing of the rehabilitation of the refi neries demonstrated deep private sector interest and a clear departure from the previous attitude where such maintenance had absolutely been borne by the federal government.
Th e Corporation’s Refi neries and Petrochemicals Chief Operating Offi cer, Engr. Anibor Kragha, disclosed this at the inauguration of eight committees charged with returning the refi neries to their nameplate capacities by the year 2019.
According to him, following the interest shown by the bidding fi rms, the Corporation was spoilt for choice and has set up the goal of getting more bids for the project by the end of the year.
Further, Engr. Kragha, who stated that the 2019 target date of compeletion the maintenance through private partnership was the fi rst in 20 years, and added that the present administration has both the political will and the economic climate to ensure eff ective retrofi tting of the refi neries.
Assuring that the nation would not suff er fi nancially from the project, the COO explained that the approved fi nancial model would guarantee payment to partners only from incremental profi ts.
“Payment is, therefore, hinged on performance, ensuring a win-win situation for Nigeria”, Engr Kragha said.
Meanwhile, the NNPC Group Managing Director, Dr. Maikanti Baru, has charged members of the eight committees to deploy “out of the box solutions” to ensure that the refi neries return to their good old days of top class performance.
“I am convinced that the teams we have selected here today will give the necessary direction towards returning the refi neries back to their optimal levels of performance,” the GMD told members of the committees.
According to a statement signed by the Corporation’s Group General Manager Group Public Aff airs Division, Ndu Ughamadu, said the GMD explained that in executing the assignment, the committees were expected to
deliver well and within schedule, as according to him, time was of the essence.
Although the target for the refi neries rehab was to return them to 90 percent capacity utilization before the end of 2019, Dr.
Baru stressed that with more commitment from the committees, 100 percent capacity utilization was achievable.
“We want to show everyone that we can fully run the refi neries.
You must all work together to operate them at 100percent capacity as this was the only way to ensure profi tability,” Dr. Baru stated.
Baru also said: “we can fi x the refi neries but without the right people to operate them, they would go back to where they were or even worse,” to state the importance of a trained workforce.
Responding for the committees, the Chief Financial Offi cer of the Corporation, Mr. Isiaka Abdulrazaq, fi rst reminded members that the rehabilitation of the refi neries was one of the targets of the President Buhari administration, and then promised that the committees would deliver on their various tasks.
Th e Committees inaugurated for the rehabilitation of the refi neries would be headed by a Steering Committee, chaired by the GMD.
Other Committees are: Rehabilitation; Stakeholder Management; Financing; Legal; Procurement; Pipeline and Crude Oil Supply and Security as well as Staffi ng and Succession Planning
