By Udeme Akpan and Nkiruka Nnorom
ABUJA: The Nigerian National Petroleum Corporation, NNPC, said Thursday that it has finalized plans to rehabilitate and build new plants, as all four refineries are currently inactive, forcing the government to import petroleum products from the global market. .
The Group’s Managing Director, NNPC, Mallam Mele Kyari, made the disclosure at the recently concluded Seplat Energy Summit 2020, which had as its theme “Business sustainability and strategic leadership in Africa”.
He said: “Today, unfortunately, our four refineries are down. We are importing all the petroleum products that we consume in this country.
” We are working to ensure that we can repair our refineries and also have new initiatives such as having the condensate refinery, which I am also pleased to announce that the Seplat group is cooperating with NNPC to create a division plant shortly.
“There are other private initiatives. As we know, there are several licenses granted by the Federal Government for people to build refineries, but they cannot do it due to the clear question about the structure of the market.
“But fortunately, we have moved from the regulated oil market to a deregulated market, which means that companies can now predict what the oil price will be at the refinery and can now have the investment base; banks can see the visibility around cost and margin recovery and ultimately we will see more activities to come.
“As we know, Nigeria is the net importer of petroleum products; That simply means that with all the resources we have, we still import petroleum products. Beyond that, it is a continent that is predicted to have a significant increase in oil consumption in the coming years, even until 2040.
“The projections of 2.3MB / d for 2040 are still a very conservative estimate. We have one of the most active populations, the growth rate and projections that show that by 2049 we will probably be the most populous continent in the world.
Esto ’This means that Africa is a continent of opportunity, and Nigeria will contribute around 25% of Africa’s total population by 2040; and in terms of growth, it will constitute around 20%. We are in a country with great opportunities where it cannot exclude oil and its resources.
” What we can do to make this work for us is first, to make the operating environment competitive: this is one of the objectives so far of the Minister and the government of today, first to reduce the cost of production and then pay attention to gas “.
Speaking earlier, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said investment in oil and gas would continue to decline globally due to the negative impact of the Coronavirus pandemic on the industry.
He said: “The COVID-19 pandemic has really taken over the global oil and gas industry with a cascading impact on other sectors. It is not just a health crisis; It is an economic and security threat to nations, especially when revenues from oil and gas sources cannot finance government budgets.
“However, it is not a death sentence, but an opportunity to see things from different perspectives and act differently. The global world economy is forecast to decline by approximately 3.4% in 2020 due to the impact of the pandemic compared to 2.9% global growth in 2019.
“According to OPEC’s analysis, the average world demand for oil decreased around 8.49 million barrels per day and oil prices fell to $ 10 per barrel in April 2020 due to the economic impact of COVID-19.
“There was also a drop between Saudi Arabia and Russia on the agreed volume of crude oil supply to the energy market, leading to global supply leading to imbalances in supply and demand for crude oil, leading to a drastic drop in oil prices. “
Similarly, Seplat’s new CEO, Mr. Roger Brown, said the government should support oil companies through partnerships in the Joint Venture Agreement, early approvals and legislation.
However, Executive Secretary, Nigerian Content Development Monitoring Board, Engr. Simbi Wabote, who leveraged local content and balanced energy development, said: “With the right policies in all nations, our young population will be the driving force in achieving our energy transition journey.”