NNPC Signs Deal Worth $26.9bn In Upstream Sector

Nigeria to achieve 90% refining capacity in 2019 — Baru

Nigeria To Achieve 90 Per Cent Refining Capacity By The End Of 2019-Baru

The Nigerian National Petroleum Corporation (NNPC) has struck a deal worth $26.9billion in the upstream segment.

The Group Managing Director, NNPC, Maikanti Baru,disclosed this at the Offshore Technology Conference in Houston, Texas.

Baru says in spite of the delay in the passage of the Petroleum Industry Bill there is renewed confidence in investing in the oil and gas industry.

Dr. Maikanti Baru, also rekindled the hope of Nigeria reducing export of its crude oil overseas for refining, as according to him, the nation will achieve at least 90 per cent refining capacity by the end of 2019.

He said: “In terms of refining and production of local petroleum products, we have faced the challenge head-on and we are fully committed to the Ministerial directive of ending the importation of petroleum products before the end of 2019. “We are in talks with the original builders of the refineries to return them to at least 90 per cent capacity utilisation before the 2019 deadline. The expectation is for Nigeria to transform from being a net exporter of crude oil to being a net exporter of petroleum products.

“To this end, we proceeded with tendering of the rehabilitation programmes of our four refineries using a contractor- financing model. The process is almost complete and successful companies for the different projects will soon be announced. This model is expected to be a self-sustaining financial model with near zero reliance on the Federal Government funds.

“For smooth running and implementation, we are also changing the operating and commercial framework of the refineries to make them work efficiently and also be commercially viable.”

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