Connect with us

Economy

Refineries Performed Below 15% in 2016 — NNPC

Published

on

refineries
  • Refineries Performed Below 15% in 2016

The consolidated operational performance of Nigeria’s three refineries based on their capacity utilisation was below 15 per cent in 2016, the Nigerian National Petroleum Corporation said.

Nigeria’s refineries are the Warri Refining and Petrochemical Company located in Delta State, Port Harcourt Refining Company in Rivers State, and the Kaduna Refining and Petrochemical Company in Kaduna State.

The facilities got 445,000 barrels of crude oil on a daily basis for the 12-month period, but refined less than 15 per cent of this volume on average.

Specifically, the NNPC stated that the combined capacity utilisation of the plants from January to December last year was 13.75 per cent.

Their worst performance was recorded in February, after they recorded a capacity utilisation of 1.72 per cent for the month, the national oil firm said.

It stated that the refineries’ best operational delivery with respect to crude refining was in October as they posted a capacity utilisation of 23.53 per cent.

On individual performance, an analysis of the NNPC’s latest report showed that the WRPC was dormant for five months last year as it did not refine or process a drop of crude oil in January, February, July, November and December.

Similarly, the KRPC was dormant for six months in 2016; it failed to process any crude oil in February, March, June, July, November and December.

Only the PHRC was able to process crude oil for 11 months in 2016. It did not process crude oil in September last year.

The NNPC stated that the total crude processed by the three local refineries for December 2016 was 141,998 metric tonnes (1,041,129 barrels).

This, it said, translated to a combined yield efficiency of 82.44 per cent compared to crude processed in November 2016 of 232,768MT (1,706,655 barrels), which translated to a combined yield efficiency of 87.08 per cent.

It said, “For the month of December 2016, the three refineries produced 121,555MT of finished petroleum products out of 141,998MT of crude processed at a combined capacity utilisation of 7.55 per cent compared to 12.78 per cent combined capacity utilisation achieved in the month of November 2016.

“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 of December 2016.”

Commenting on the development, the Director, Emerald Energy Institute, University of Port Harcourt, Prof. Wumi Iledare, told our correspondent that the oil and gas sector needed to be restructured in order to enhance not just the output of refineries but that of the industry as a whole.

Iledare noted that the governance structure of the sector was weak and that this had permeated virtually all the facets of the oil and gas industry, adding that a functional regulatory framework should be put in place.

He urged the Federal Government to seek the inputs of professionals, as well as train operators manning key positions in the industry in order to get the best from them and boost the performance of the sector.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

Published

on

Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

Continue Reading

Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

Published

on

Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

Continue Reading

Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

Published

on

Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending