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Warri, Kaduna Refineries Record zero Production

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refineries
  • Warri, Kaduna Refineries Record zero Production

Two out of Nigeria’s three refineries were completely dormant in November 2016 as they could not refine a drop of crude oil throughout the period.

Aside from the Port Harcourt Refining Company in Rivers State, which recorded a capacity utilisation of 27.09 per cent, the other two refineries, Warri Refining and Petrochemical Company in Delta State and Kaduna Refining and Petrochemical Company in Kaduna State, posted zero capacity utilisation in November last year.

The latest oil and gas report from the Nigerian National Petroleum Corporation showed that the WRPC and the KRPC failed to sustain the capacity utilisation that they recorded in the previous month.

An analysis of the report showed that the WRPC and the KRPC had posted 30.86 per cent and 12.88 per cent as their respective capacity utilisation in October 2016.

While the figures dropped to zero in November, the PHRC was able to increase its capacity utilisation from 24.74 per cent in October to 27.09 per cent in the month under review.

The report indicated that the plant capacities of the WRPC, PHRC and KRPC were 125,000 barrels per day, 210,000bpd, and 110,000bpd, respectively.

Their consolidated plant capacity was put at 445,000bpd, while their consolidated capacity utilisation for November 2016 was 12.78 per cent.

The national oil firm said pipeline vandalism in the Niger Delta and the facilities being revamped were reasons for the abysmal performance of the refineries in November.

It said, “Total crude processed by the three local refineries, the KRPC, PHRC and WRPC, for the month of November 2016 was 232,768 metric tonnes, translating into a combined yield efficiency of 87.08 per cent compared to crude processed in October 2016 that was 442,693MT, translating into a combined yield efficiency of 88.03 per cent.

“For the month of November 2016, the three refineries produced 178,107MT of finished petroleum products and 24,599MT of intermediate products out of 232,768MT of crude processed at a combined capacity utilisation of 12.78 per cent, compared to 23.53 per cent combined capacity utilisation achieved in the month of October 2016.”

It added, “The adverse performance was due to crude pipeline vandalism in the Niger Delta region coupled with ongoing refineries revamp. However, the three refineries continue to operate at minimal capacity, only the PHRC processed crude during the month.”

Following the refineries’ inability to refine crude into petroleum products for local consumption, the national oil firm has to continue with its direct-sale-direct-purchase practice with foreign refiners.

The report stated that in November last year, 1,003.28 million litres of white products were supplied to the country through the DSDP arrangement while 802.75 million litres were supplied in October 2016.

It specifically stated that only Premium Motor Spirit, popularly called petrol, was supplied through the DSDP in both October and November 2016.

The report indicated that petrol and kerosene from the domestic refineries in November 2016 amounted to 191.75 million litres, compared to 210 million litres in the previous month.

Billions of naira had been spent on revamping Nigerian refineries without commensurate results over the years.

But in December last year, the Federal Government declared that it would not spend any more money on the facilities, stressing that it would rather favour private sector investment and subsequent joint ownership and management of the plants for greater efficiency.

The Minister of State for Petroleum Resources, Ibe Kachikwu, stated in Abuja that the government was working hard to bring in private investment capital to strengthen the plants in order to boost the nation’s local refining capacity.

“Government’s money will not be committed to the refineries anymore,” Kachikwu had said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

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Global debt

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

The United Nations Trade Association has Nigeria recorded a total of $2.6 billion in Foreign Direct Investment (FDI) in 2020, below the $3.3 billion posted in the preceeding year.

South Africa, Africa’s most industrialised nation, reported $2.5 billion during the same year, slightly below Africa’s largest economy and 50 percent below the $4.6 billion attracted a year earlier.

The report also noted that Africa recorded a total of $38 billion FDI in the same year, representing a 18 percent decline from the $46 billion posted in the corresponding year of 2019.

However, Egypt led Nigeria and South Africa with $5.5 billion FDI, an increase of 38 percent from the preceeding year.

The report read in part, “FDI flows to Africa declined by 18% to an estimated $38 billion, from $46 billion in 2019. Greenfield project announcements, an indication of future FDI trends, fell 63% to $28 billion, from $77 billion in 2019. The pandemic’s negative impact on FDI was amplified by low prices of and low demand for commodities.

UNCTAD also noted that global foreign direct investment declined by 42 percent to an estimated $859 billion, down from $1.5 trillion in 2019.

The decline was concentrated in developed countries, where FDI flows fell by 69 percent to an estimated $229 billion. Flows to Europe dried up completely to -4 billion (including large negative flows in several countries). A sharp decrease was also recorded in the United States (-49%) to $134 billion.

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Economy

FG to Partly Fund Six Rail Projects Connecting All Regions

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FG to Partly Fund Six Rail Projects Connecting All Regions

The Federal Government will pay a total sum of N71 billion to partly fund six rail projects connecting all regions of the country.

In the report obtained from the Federal Ministry of Finance, Budget and National Planning, the six rail projects marked for development this year are Lagos-Kano rail line (ongoing), Calabar-Lagos (ongoing), and Ajaokuta-Itakpe-Aladja (Warri).

Others are the Port Harcourt-Maiduguri railway, the new Kano-Katsina-Jibiya-Maradi line in Niger Republic and the Abuja-Itakpe and Aladja-Warri Port and refinery/Warri new harbour.

The Buhari administration will also spend N15.1 billion on the development of safety and security of critical projects, airport certification, runway construction, terminal building, among others in the aviation sector in 2021.

Last week, Rotimi Amaechi, Minister of Transportation, said the Lagos-Kano line would be connected from the Ibadan end of the Lagos-Ibadan railway and would cost $5.3 billion.

We are waiting for the Chinese government and bank to approve the $5.3bn to construct the Ibadan-Kano. What was approved a year ago was the contract,” the minister said.

He added, “The moment I announced that the Federal Government had awarded a contract of $5.3bn to CCECC (China Civil Engineering and Construction Corporation) to construct Ibadan-Kano, people assumed the money had come in; no.

“We have not got the money, which is a year after we applied for the loan. We have almost finished the one of Lagos-Ibadan. If we don’t get the loan now, we can’t commence.”

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Economy

FG Launches E-ticketing Platform to Deepen Train Usage and Convenience

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FG Launches E-ticketing Platform to Deepen Train Usage and Convenience

In a bid to improve the usage and enhance the convenience of train transport in Nigeria, the Federal Government on Thursday announced the launching of the Electronic Ticketing platform for the Kaduna-Abuja rail services.

The N900 million E-ticketing platform was introduced by the Minister of Transportation, Chibuike R. Amaechi, and the Nigerian Railway Corporation.

Amaechi said the new platform would improve efficiency, promote accountability, reduce leakage and enhance economic growth, as well as save time.

The E-ticketing platform was a Public-Private Partnership project done in conjunction with Secure ID Solutions, who provide and would manage the system for 10 years in an effort to recoup its investment before the Nigerian Railway Corporation take charge.

Kofo Akinkugbe, the Chief Executive Officer, Secure ID Solutions, said as the new E-platform issued 25,000 tickets after a successful pilot test on Thursday.

Potential Travelers can book via three ways:

1. Mobile app
2. Website
3. POS or Cash at the station

A validator would be used to scan the ticket barcode to ascertain its authenticity before boarding.

Amaechi further announced that self-service ticket vending machines at various train stations would be introduced soon.

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