The Nigeria National Petroleum Company Limited (NNPCL) has said the country would in no distant time transform into a self-sufficient producer and net exporter of refined petroleum products.
Chief Corporate Communications Officer Femi Soneye revealed this in an interview at the weekend.
He said: “The NNPC Ltd. is working towards transforming Nigeria into a self-sufficient producer and net exporter of refined petroleum products and a very first step in that direction is the successful rehabilitation work that has birthed the renewed operations of the Port Harcourt and Warri refineries.
“The rehabilitation and upgrade of the Old Port Harcourt and Warri Refineries by the end of 2024 marked a significant milestone in this journey. And, as you know, work on the New Port Harcourt and Kaduna Refineries is at advanced stages, reinforcing the commitment to eliminating fuel importation.”
“The aging pipeline infrastructure is an issue that we have to deal with. Nigeria has a 5,120 km network of crude oil and product pipelines connected to 22 storage depots (terminals). The infrastructure is dilapidated, making product transportation inefficient.
“Then there is the issue of pipeline vandalism and security concerns. Frequent pipeline vandalism has led to losses and disruptions in supply.
In the past, refineries had been forced to shut down due to full storage tanks and inability to evacuate products and rather than use the pipelines, this has led to an over-reliance on road transport-the breakdown of pipelines has resulted in increased use of trucks for product distribution and this has led to frequent road accidents, fires, and high transportation costs. As the saying goes, Rome was not built in a day and all that we are doing now is to re-commit to the ethos and virtues of protecting critical assets with a view to avoiding mistakes of the past, the consequence of which we are facing and paying for now,” Soneye added.
Providing further insight into the planned transformation plan, the NNPCL image maker said: “Whereas there is limited financial resources, which continues to pose a challenge in executing both refinery and pipeline rehabilitation projects simultaneously, we are exploring creative and innovative approaches to ensure a cost-effective funding model to proceed with the pipeline and depot rehabilitation.
“For instance, to ensure the sustainability of refinery operations and improve the supply chain, NNPC Ltd. designed a robust rehabilitation plan for pipelines and depots: We will be deploying a new financial model: Finance, Build Operate and Transfer (FBOT) approach.
“Unlike the refineries, which were funded through loans, the pipeline and depot rehabilitation project is based on the Finance, Build, Operate, and Transfer (FBOT) model. Under this model, contractors finance the project, operate it for a set period to recover their investment, and then transfer ownership back to NNPC Ltd.”
Full Interview on www.blueprint.ng