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Nigeria: NNPC Managing Director Explains Why FG shut down all refineries
Category :- Environment Author :- L J KINGAH 
Posted on September 10, 2020, 11:02 am
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Mele Kolo Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation-NNPC on Channels Television’s Politics has explained why FG shut down all refineries which led to contention.

According to the Nigerian geologist, the four oil refineries in the country shut down in Port Harcourt, Warri and Kaduna were functioning below capacity reason why it was necessary to stop them from operating all together.

Nigeria: NNPC Managing Director Explains Why FG shut down all refineries

In his own words while responding the question, he said, “First, all the four refineries in three locations are shut down and it was a deliberate decision for two reasons.”

One of the reasons he said was that, “delivery of crude oil to these refineries is completely challenged because the pipeline network has been completely compromised by vandals and all kinds of people that will not allow us to operate these pipelines.” Because of this, one is therefore “not able to deliver crude oil to these refineries effectively to their maximum capacity.”

Nigeria refinery

He explained at the second reason saying that, rehabilitation is different from the turnaround maintenance. And, according to him, “Turnaround is routine which every refinery does but when you talk about rehabilitation, it is that colossal loss of capacity in the refinery and it means you haven’t done the turnaround maintenance properly.”

According to the crude oil marketer and the 19th Group Managing Director-GMD of NNPC “every refinery is expected to operate at 90 per cent of its installed capacity.

NNPC

He however stated that, “With the best of effort, with all the turnaround maintenance that has taken place, it is impossible to run any of the refineries before the shutdown at that level.”
It was estimated to be run at 60% capacity but if that is done, value will be destroyed, the MD indicated. “Our estimate was to run it at 60 per cent of capacity but if you do that, all you are doing is value destruction. You will take $100 crude into the refinery and bring out $70 product. It doesn’t make sense.” were his words.

NIGERIA REFINARY

Mele Kolo Kyari, the Group Managing Director-GMD of the Nigerian National Petroleum Corporation- NNPC is a geologist and a crude oil marketer

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