Refineries to get new investors in Sept. – Kachikwu

State-owned refineries would get new investors in September, this year. This was made known by the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, at a news conference on the sideline of the 2017 Offshore Technology Conference (OTC) in Houston, U.S. on Wednesday.
He listed the refineries as Port Harcourt Refining Company (PHRC), Warri Refining and Petrochemicals Company (WRPC) and Kaduna Refining and Petrochemicals Company (KRPC).
The Minister explained that the country now had a sizeable willing investment portfolio for the refineries, adding that the new investors would be made public in September.
“When we came on-board, the refineries were not working but as we speak, we have sizeable investment portfolio for them to an extent that we don’t know who to partner with for the investment.
“By September, we will unveil the investors for the refineries.
“The new investors are expected to repair, revamp and maintain the refineries according to the terms and conditions of the contract,” he said.
Kachikwu, however, said that when completely repaired, the refineries would still not meet the country’s consumption need, but added that where the refineries fail to meet the demand, Dangote’s and modular refineries would fill the gap.
Recall that Labour Unions in the oil and gas industry have already warned the Federal Government against privatising the refineries.
Meanwhile the Federal Government on Wednesday said it would revoke licenses given to individuals and corporate organisations for private refineries but were yet to be utilised.
The Federal Government under former President Olusegun Obasanjo had granted licenses to some private concerns to build refineries but only Alhaji Aliko Dangote put it to use.
His refinery, under construction, is nearing completion and recently, he assured that the 1.3 million metric tonnes per annum petrochemical plant in Lagos would commence operation in the last quarter of 2018.
Kachikwu said that he had had discussions with the Department of Petroleum Resources (DPR) whose statutory functions included processing application for various licenses, permits and approvals across the oil and gas value chain, on the matter.
“I have spoken with DPR on the matter. Those who have not been able to move forward will have their licenses withdrawn,” he said.
He said the aim of giving licenses was to reduce the huge capital flight to fuel importation, meet local demand and look at possible exports.