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Ibe Kachikwu

Kachikwu: Fuel shortage to gradually ease off

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——--Says refineries operating at 60% but need $700m to upgrade to 90%

Minister of State for Petroleum, Ibe Kachikwu, has said the lingering fuel shortages in major cities across the country would gradually ease off with coming on stream of refineries, which require about $700 million to upgrade and operate at 90 per cent capacity.

Kachikwu, who noted this when he re-commissioned the 46-km Escravos-Warri pipeline, however warned that the long-term solutions would take time.

According to him, “It is going to take time because we are addressing a long-term solution. There is a lot of policy issues coming in to ensure that we resolve this and we would not need to go back to the pipes over again.

Kachikwu, who also inaugurated the Bonny–Eleme Refinery crude pipeline to formally bring it on stream, added: “When the upgrade and repairs, led by the foreign investors, with our joint team, are concluded, our capacity will move from about 50 per cent to about 90 per cent, resulting in movement from 12 million litres to slightly in excess of 20 million litres production per day. The co-located refineries that we have also advertised, which will be private sector-led, by the time they are attained in about two years, there will be excess of 750,000 barrels refined petroleum production capacity per day.

“Our hope is that by 2018, fuel importation will be reduced by at least 60 per cent, because of the upgrade that would have taken place. By 2019, when the co-located refineries are in place, we will actually be exiting importation and begin to export refined petroleum products. That is the strategic way. That is what we are working on.”

He called on Nigerians to collectively tackle the issue of pipeline vandalism.

Kachikwu at the event, also disclosed both Warri and Kaduna refineries which had been cut out from supply of crude oil due to the vandalised pipeline are now receiving crude simultaneously for the first time in many years.

He said the Warri refinery had already started working while Kaduna will start production at the end of the month.

According to him, this means that for the first time in many years, the nation’s three refineries at Port Harcourt, Warri and Kaduna, as well as major crude pipelines in the country will be working at the same time.

Kachikwu stated in a statement from the spokesman of the NNPC, Mallam Garuba Deen Muhammad, that the Escravos terminal was the heartbeat of the downstream sector of the country’s petroleum industry, adding that it was critical to local supply of finished petroleum product as both refineries in Warri and Kaduna are majorly fed from Escravos crude stock.

“The challenge of this country is the challenge of focus and stewardship. For the first time in many years the three refineries are going to be working and it will help in a great deal with the issue of fuel supply and distribution across the country and it will go a long way to manage the fuel crisis,” said Kachikwu.

The minister enjoined Nigerians to be more patient as the NNPC was working hard to end fuel shortage across the country.

On that, he stated: “I appreciate the patience of Nigerians and I am committed and focused to make petrol available to all nooks and crannies of Nigeria.”

It is equally understood that the pipeline which has some of its axis underwater especially at challenging terrains to make it quite difficult to vandalise, was built by Ocean Marine Solution.

Its chairman, Captain Hosa Okunbor, told journalists that the completion of the multi-billion naira project was made possible by President Muhammadu Buhari, who insisted on bringing total reform in the oil and gas sector.

He noted that this is first time in the last 10 years that crude will be delivered to the Warri refinery through pipelines.

Okunbor who disclosed that his firm was also undertaking similar project between Bonny and Port Hacourt refinery, expressed strong confidence that with three refineries Warri, Port Harcourt and Kaduna, refining petroleum, the scarcity of the petroleum industry products would soon be a thing of the past.

“Today, we are very glad that for the first time over 10 years we are able to deliver the crude line between Escravos and Warri and crude is now flowing through the pipeline which was impossible over the years…

“For me, am so glad because sometimes there are certain things you achieve that are more than money. We have created serious value for this country using our own resources.

He added: “The community are able to cooperate with us. We used carrot and stick approach and our security surveillance and also the contract of actually doing the job and replacing the contract. It was very tedious and sometime we almost got killed and threat to our lives which informs why you see all these security around us. We have put our lives on the line to deliver Escravos, we have also delivered Bonny to Port Harcourt and today there is crude in Port Harcourt that is flowing to the refinery and the same thing with Warri refinery.

“As a company it was a big gamble to do this. We spent billions without a penny from NNPC but today we have cured the problem. A lot of people did not understand, some wrote petitions that we were given contract, at a point my name was going to be soiled and I believe in my name. I am a role model to my family and the people on the street and that is what gave the will to deliver this.”

Kachikwu, who stated that the daily consumption of premium motor spirit (pms) currently stands at about 45 million litres, pointed out that the refineries now operating at 60 per cent capacity could only produce 12 million litres. He however added that there was need to upgrade the refineries to produce at 90 per cent minimum to produce about 20 million litres.

He said the corporation was already sourcing for foreign investors to raise the necessary funds.

He however said the foreign investors were not coming to run the refineries but only to provide the needed capital and technical assistance.

“We have signed the advertisements for investors to come in. There is no confusion about what they are coming to do; they are not coming to run the refinery. They are coming to provide funds to take our performance on these refineries to 90 per cent and to provide us with technical skills. So, the areas of intervention will be funding and technical support,” he said.

He explained that, “Port Harcourt is back in production, Warri is back in production. Kaduna today is receiving and will soon be back in production. It is something of joy. These are problems we set out to correct and we are correcting one by one.

“I thank Nigerians for their patience and I urge them to remain resilience, support what we are doing because this is the only way to change the system. We may see all kinds of publications, all kinds of attacks; I don’t focus on these, I focus on the results and the results are coming out.

“Total investment for that is up to $700 million and we don’t have that. Let us be honest about it. So, the best thing to do is to find a very creative way to bring in investors, who will come in, work with our team here, who have the skills, reactivate and upgrade facilities in this place and help us provide technical support and we will pay through the flow-out of the refined products over time.”

About Charles Igbinidu

Charles Igbinidu is a Public Relations practitioner in Lagos, Nigeria

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  1. After all the mouth making. We’re back to the days of fuel queues.

  2. SLAVE!!”!! HIS Master’s VOICE!!!

  3. lipservice is more reliable than ending the misery Nigerians are facing on a daily basis. Besides,the never ending queue doesn’t seem to stop.

  4. lipservice is more reliable than ending the misery Nigerians are facing on a daily basis. Besides,the never ending queue does seem to stop.

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  6. Just cooking soup of lies to Nigerians.

  7. Nneka Alaeke Akah

    So many stories everyday same man that said is better to import fuel than to refine here now we are hearing refinary is this and that yet no improvement scarcity of fuel still they barb people gosh,sign of cluless

  8. SLAVE!!”!! HIS Master’s VOICE!!!

  9. Usain Bala Usain Bala

    hardworking minister

  10. Auwalu Moh'd Salisu

    Let us see!

  11. oga ibe said, fuel scacity wil end by may,but apc force him to come n lie lie to nageria that it wil end on april seven,to them dat was april fool……

  12. Ibe is now another liar muhammed. Ibe told us that oil scarcity will disapear immidiately we step into first jenuary 2016 but see us today, we are still lining up in filling stations to buy oil.

  13. Still on the drawing board

  14. You are the assistant minister for petroleum, why has the main minister not spoken? Many liar Muhammad’s in Nigeria.

    • Musa Tukur Tambuwal

      Mscheew illiteracy is a disease

      • Musa Tukur Tambuwal you are the ignorant and bloody illitrate here,he asked a simple question and you attack like a cobra. …why aren’t other ministers sit back while their minister of state do the talking? Buhari is incompetent and lacks ideas…he is just a parasite

      • Musa Tukur Tambuwal, this is for you. Funny but true.
        IN NIGERIA
        ✳ President -North.
        ✳ Senate President -North
        ✳ Speaker House of Reps – North.
        ✳ PDP National Chairman – North.
        ✳ Head of Service – North.
        ✳ INEC Chairman – North.
        ✳ Inspector General of Police – North.
        ✳ Chief Justice of federation – North.
        ✳ President Court of Appeal – North.
        ✳ EFCC Chairman – North.
        ✳ President Federal high court – North.
        ✳ National Security Adviser – North.
        ✳ Chief of Defense Staff – North.
        ✳ Chief of Naval Staff – North.
        ✳ Controller, Customs
        Service – North.
        ✳ Defence Minister-North.
        ✳ MD Port Authority- North.
        Director General, National Women Affairs Commission Abuja – North (Male for that matter)
        ✳ MD NDIC – North
        ✳ Controller Prison Services – North.
        ✳ Richest man in Africa – North.
        ✳ 85% of Petroleum Marketers in Nigeria – Northerners.
        ✳ 80% of Oil Block Owners in Nigeria – Northerners.
        ✳ 99% of beggars in Nigeria – Northerners
        ✳ Boko Haram – North.

        Yet, the Poorest states in Nigeria and Educationally
        backward areas in Nigeria are in the North. Now, ask yourself, what is the problem of the Northerners? Keep forwarding till it get to all their leaders may be they will have to re-think….
        CAN YOU IMAGINE? ? D answer is: desert spirit & d spirit of witchcraft, spirit of d grave & demonic manipulations, dat dominates d north

  15. Musa Tukur Tambuwal

    Just go back to skul bro

  16. Oguntowo Samuel Depo

    Kachikwu is not only a state minister but, because Buhari assigned him heavy responsibilities, the hard place where will were ease molested, have you ever hearing from others state ministers? even some main ministers. God will see us through in Nigeria!

  17. Mr Kachikwu thanks for saying it as it is. Always say the truth even though it hurts. If you remember the parable of the dog.If it likes you it barks and if doesn’t it also barks. Focus on your job and don’t mind these people who have just woken from their slumber that they have elected people over the years who have taken away their livelihood.

  18. There is always something to blame in this govt, pls keep the news and give us fuel

  19. State minister always saying,what hv the minister him self said..#God help Nigeria

  20. Hope this will be your final word on this fuel crisis.

  21. What we are capable of being and doing is our greatest life asset.

  22. Still on the drawing board

  23. Bilikisu Bashiru

    Is it yet April 7th?

  24. how much would new refinery cost

  25. These Liars Have Come Again! Bull-shit!!

  26. If it will take 7OOmillion dollar to upgrate from 60% to 90% which is just a 40% increase then i think this APC gov are fools

  27. Hahaha Kevin nwanne Adamu Musa agbala oso. He think say e get mouth. Charkole calling kettle black.

  28. Yes go ahead don’t mind politician,with their noise

  29. Pls let it be. Nigerians hv suffered a lot. However, fuel is @ #160 in Owerri.

  30. What I expected from the Hon Minister of Petroleum in his addressed to National during this fuel scarcity period is to stand by his words, by reporting to National the status of the three Refineries and their Vandalized Crude Oil Pipe Lines on weekly basis, this could have save him all the embarasment.from Public.

  31. Buhari, pls release this money from the looted funds already recovered but WITH STRICT SUPERVISION.

  32. pls wer is d so called minister for petroleum… useless country

  33. Can’t see any sign of that in ph fuel is goes beyond its official price

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