FG Intensifies Efforts To Halt Oil Importation, Urges IOCs To Build Refineries
Ibe Kachikwu, Minister of State for Petroleum[/caption]
The Federal Government, on Monday, indicated its desire to stop oil importation into the country, while it called on the International Oil Companies, IOCs, to invest in the building of refineries in the country.
Mr. Ibe Kachikwu, the Minister of State for Petroleum Resources said this while speaking to top Executives of ENI in Rome, Italy.
According to him, the ENI and other IOCs should look beyond the business of crude oil exploration to firmly support the vision of enhancing local production of petroleum products in Nigeria by building refineries in the country.
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He also revealed that the Federal Government has plans to stop importation of petroleum products in the long term, stressing that it would be expedient that every IOC invested in building a refinery with a chain of distribution.
Kachikwu also acknowledged that the refineries could be built within a short period of time, investment in the venture could be recouped by direct sales model if the IOCs could work together.
Giving historical background of the challenges of the petroleum sector, Kachikwu argued that investment in the refineries was necessary now, more than ever, considering the fact that Nigeria’s refineries built in the1970s and 1980s were at present, working at sub-optimal levels and could not sufficiently cater for local needs.
Also, ENI signed a Memorandum of Understanding, MOU, with the Nigerian National Petroleum Corporation, NNPC, for the refurbishment of the Port Harcourt Refinery, building of Phase 2 of the Okpai Power Plant and further investments in Nigeria’s oil and gas industry worth over several billions of dollars.
