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Tag: refineries

  • Why Nigeria’s refineries are not operational – NNPC GMD

    Why Nigeria’s refineries are not operational – NNPC GMD

    The Group Managing Director (GMD) of Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari has given reasons why the nation’s refineries are not operational.

    Kyari made the submission when he appeared before the House of Representatives Committee on Petroleum Upstream on Thursday at the National Assembly Complex in Abuja.

    The GMD appeared before the committee at a 2021 Budget Defense hearing, where he defended the Corporation’s 2021 Budget.

    Kyari speaking before the committee said NNPC deliberately shut down the nation’s refineries because they no longer make sense to be operated.

    He said that the NNPC was unable to supply crude oil to the refineries, adding that it was only the Escravos pipeline which the NNPC managed to sustain through contracting process.

    According to him, it is practically impossible to run pipelines at their optimum capacity.

    “For instance, to run Kaduna and Warri refinery, you need to deliver 170,000 barrel of oil per day so that both will operate at 70 per cent capacity,” he said.

    Kyari said that at the moment, it only had over 5,000 kilometers of pipelines with 13 fuel depots, which according to him must be protected to forestall the activities of vandals.

    “And I can tell you today that except the Atlas cove to Ibadan line and also the Portharcourt to Aba line, none of these pipeline is serviced.

    “We cannot flow product into these lines, the cheap one is to say they are aged but the real reason is that the level of activities of vandals on these lines is gross, monumental and profound.

    “At every point within a month we fix 80 vandal points, the option is to shut them down and the result of having one depot is what we have seen in Lagos,” he said.

    The GMD said that the activities of vandals made it impossible for pipelines to be operated, adding that from January to June it had lost petroleum product close to N43 billion.

    Kyari said that to protect the pipelines, the NNPC had to engaged the service of security agencies to curtail the activities of vandals.

    He urged the House of Reps to urgently pass the Petroleum Industry Bill (PIB), adding that the passage would encourage investors in the sector.

    Kyari said that by the end of December there would be hope for the Petroleum sector, adding that the NNPC would declare dividends to the Nigerian people.

    He promised to run the corporation with transparency and accountability adding that the NNPC had published its audited report of 2018 and 2019, which according to him had not happened before.

    Meanwhile, the NNPC under Kyari received commendation from the committee for breaking new grounds in its commitment to transparency and accountability.

    The committee commended the Management of NNPC for defending the Corporation’s budget at the National Assembly in a timely manner.

    Chairman of the Joint Committees, Hon. Musa Sarki Adar gave the commendation.

    “We have the GMD and his management team here to defend their budget, we appreciate this. We have witnessed what this parliament has never seen before, I stand to be corrected,” Adar remarked.

    The Chairman who said he was initially skeptical about the GMD’s TAPE agenda, explained that he was beginning to see its positive impact through the GMD’s performance so far, adding that Kyari has done a lot for the country within a short time.

  • Why Nigeria’s four refineries are not at production capacity – NNPC

    The Nigerian National Petroleum Corporation (NNPC) has explained why the four refineries in the country are not producing petroleum products as expected.

    The state-owned oil firm said for almost a year the facilities located in Warri (1), Port Harcourt (2) and Kaduna (1) have not refined a single drop of product.

    The reason for this, according to the NNPC in a report, is because of ongoing rehabilitation on the facilities.

    From June 2019 till January 2020, no drop of petrol or kerosene was produced by the refineries, as they recorded zero all through the eight-month period.

    “No white product was produced in January 2020 and apparently for the past seven consecutive months,” the corporation said in its latest reports.

    According to the report on refined white products (petrol and kerosene) from local refineries, from June 2019 till January 2020, the facilities refined none of the identified finished products.

    It was further observed that the last time the refineries produced Premium Motor Spirit (PMS) otherwise called petrol, was in May last year.

    The same scenario also applied in the production of Dual Purpose Kerosene (DPK) often referred to as kerosene, as the last time it was refined by the facilities was in May 2019.

    An analysis of the figures should that in January, February and March 2019, the refineries produced 45.5 million litres, 44.1 million litres and 44.1 million litres of petrol respectively.

    Also, in the same first three months of last year, they jointly produced 36 million litres, 36.1 million litres and 38.2 million litres of the DPK respectively.

    But in April last year, their production of PMS and DPK crashed to zero, meaning that they refined no white product in that month.

    In May 2019, they produced 9.1 million litres of petrol and 4.9 million litres of kerosene. But after that, nothing was on record for a consecutive eight months in the NNPC maintained refineries.

    Refineries under the management of the NNPC are the Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company and Warri Refining and Petrochemical Company.

  • FG steps back, to hand over nation’s refineries to private firms

    FG steps back, to hand over nation’s refineries to private firms

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, said the corporation will no longer be involved in the management of the nation’s refineries.

    Kyari said this policy direction will come into force upon the completion of the rehabilitation of the refineries.

    He said this on Wednesday as a special guest on an Arise TV programme, The Morning Show.

    He said the services of a company would be procured to manage the plants on an Operations and Maintenance (O & M) basis.

    “We are going to get an O&M contract. NNPC won’t run it”, he said.

    “We are going to get a firm that will guarantee that this plant would run for some time.

    “”We want to try a different model of getting this refinery to run. And we are going to apply this process for the running of the other two refineries,” he added.

    Kyari explained that the plan, ultimately was to get private partners to invest in the refineries and get them to run on the NLNG model.

    Under the model, shareholders would be free to decide the fate of the refineries going forward.

  • No plans to sell NNPC, refineries, FG assures Nigerian workers

    No plans to sell NNPC, refineries, FG assures Nigerian workers

    …As labour calls for reversal of power sector privatisation

    The Federal Government has assured the workers that it has no plan to sell any of the nation’s refineries and the Nigerian National Petroleum Corporation (NNPC).

    Anybody who has such plan, it said, did not have the workers’ interest at heart.

    President Muhammadu Buhari stated these yesterday at the NLC 12th Quadrennial National Delegates Conference in Abuja .

    The President, who was represented by the Secretary to the Government of the Federation, Boss Mustapha, said government was determined to attain the decent work agenda, which involves opportunity for works that are productive, deliver a fair income, security for workplaces and social protection for families.

    “I want to reassure you of the commitment of this administration to the issue of welfare of workers. This is evidence of numerous programmes and policies that have been initiated by this administration in promoting the interest of the well-being of our workforce.

    “The administration is committed to addressing other labour issues that are still pending,” Mustapha said.

    But, NLC has called for reversal of power sector privatisation due to what it called chronic failures by the distribution companies (DISCOS) to deliver quality power supply to Nigerians.

    Its National President, Comrade Ayuba Wabba, said: “Since the privatisation of electricity distribution, Nigerians are yet to see the fulfilment of promises of efficient service delivery.

    “Instead, the electricity situation has gone worse with chronic failures by DISCOs to supply prepaid meters, exploitation of Nigerians through estimated billings and reluctance to attend to basic complaints.

    “Even with N39 billion bailout funds from government, the supposed private entrepreneurs have failed to turn anything around, except maybe their pockets, unfortunately, at the expense of Nigerians. This must stop.

    “We call on government to reverse the power sector privatisation because it has failed. Privatisation of public utilities has not generally proven to be the correct thing to do in most countries, even developed ones, according to a study released by Public Services International.

    Quoting author of “Why Public Private Partnerships don’t work; the many advantages of public alternative, David Hall, Wabba said privatising public utilities had been a wreck in most countries.

    He mentioned Spain, France, India, South Korea, United Kingdom (UK), Australia among others showed “how public/state guarantees and loans to private sector for the utilities sector have resulted in failures on delivery of services as well as repayment in most cases”.

    He, however, urged the Federal Government to resuscitate Nigeria’s ailing refineries to liberate the downstream sector.

    According to him, “the crisis of industrialisation and manufacturing in Nigeria is best exemplified by the chaos in the downstream petroleum industry, where we have been unable to manage our vast natural carbon resources for national growth and prosperity of our people.

    “Our four national refineries are almost under lock and key as we depend on the importation of refined petroleum products for our energy needs. Promises by successive government to resuscitate our refineries have become a mirage.

    “To rub salt to injury, our public officials have now found a new hobby – taking ‘selfies’ in an ongoing private refinery project being constructed by the Dangote Group. This is truly sad for Africa’s largest producer of crude oil and the sixth largest in the world.

    “We will continue to push for the resuscitation of our four refineries and for the construction of additional public refineries. This will bring to an end the fraud associated with subsidy payment.

    “The only sustainable solution to our energy crises lies in prioritising the development of the value chain in our downstream petroleum sector. This is a major step towards jump-starting our economy and unlocking trapped jobs. Our country would also be saving trillions of naira we currently spend on importing refined and poorly regulated petroleum products from overseas.”

     

  • Nigeria’s refineries not too old to function – NNPC

    Nigeria’s refineries not too old to function – NNPC

    The Nigerian National Petroleum Corporation (NNPC) says the country’s refineries are not too old for effective refining operations.

    Kragha Anibor, NNPC Chief Operating Officer, Refineries, disclosed this at a panel session at the ongoing Nigerian International Petroleum summit (NIPS), on Wednesday, in Abuja.

    The panel discussed the topic “Refining, Transportation and petrochemical”.

    He said that the major problem of the corporation to bring the refineries to work was funding adding that government had continued to ensure the best way to manage the refineries.

    He said that government would not sell off the refineries without putting them in a shape that financiers would be able to come in to fund the revamping for them to operate optimally.

    He said that the Port Harcourt refinery had its last Turn Around Maintenance (TAM) in 2000, Warri in 2004 and Kaduna in 2008

    He said that government would continue to ensure adequate and best agreement with investors for the refineries to ensure the best for the industry.

    Commenting on the growing refining gap, he said that the nation’s fuel needs would be 45 million litres per day by 2025.

    He projected that when the refineries are in good shape, they will be producing about 22.5 million litres per day.

    He added that Dangote Refinery coming on stream would be producing about 53 million litres per day which when added to the one from our refineries would be over the daily needs of the country.

    He assured that efforts were on to ensure that Port Harcourt refinery would be up and running by 2020.

    “We have contacted the original builders and they will soon come to start work,” he said.

    But in his comment, Chidi Izuwah, the Director-General, Infrastructure Concession Regulatory Commission (ICRC), said concessioning the refineries was the best way to get them working.

    He said that the NNPC must embrace full concession model to tackle the problems with the refineries.

    “The government must play the role in bringing the private sector in the downstream to help the country benefit from the oil and gas sector,” he said.

    Emmanuel Iheanacho, Chairman Integrated Oil and Gas Limited, said that viable refineries would help to add value to development in Nigeria.

    He said that there was urgent need to address the imbalance in the system and find a way to advance local refining.

    “We need to use technology for refining, price regulation is also very important issue to look into,” he added.

    Also, Huub Stillman, Chief Executive Officer, OVH Energy Marketing, said that Nigeria was one of the few OPEC members without efficient refineries.

    “Nigeria with its location, the population must have a refinery that is working efficiently,” he said.

  • No maintenance on Nigeria’s refineries for 42 years — NNPC boss

    No maintenance on Nigeria’s refineries for 42 years — NNPC boss

    The Group Managing Director of the Nigerian National Petroleum Corporation(NNPC), Dr Maikanti Baru, said that the country’s refineries had not undergone Turn Around Maintenance(TAM) for an aggregate of 42 years.

    Baru disclosed this in his New Year message issued by the Corporation spokesman, Mr Ndu Ughamadu, in Abuja, on Monday.

    He said that in spite of the challenge, major rehabilitation works were carried out in all the three refineries.

    He noted that the Warri Refinery and Petrochemical Company, WRPC, had its Distribution Control System (DCS) successfully upgraded while the Port Harcourt Refining Company (PHRC) had major interventions in Fluid Catalytic Cracking Unit, (FCCU) and Power Plant Unit (PPU) fixed.

    He added that Kaduna Refinery and Petrochemical Company (KRPC) was undergoing major repairs of its FCCU, Catalytic Reforming Unit (CRU) and Crude Distillation Unit 2 (CDU2).

    According to him, efforts are afoot to get the original builders of the refineries to carry out TAM on them after securing favourable private funding for the exercise.

    On the downstream sector, he said that although 2018 was riddled with some supply shortages, he was delighted that the corporation rose to the occasion with the support of President Muhammadu Buhari and the resilience and hard work of NNPC staff members.

    “As at today, there is fuel availability in the nooks and crannies of the country,’’ he said.

    He further disclosed that the NNPC imported a total of 15.874, million metric tonnes of Premium Motor Spirit (PMS), otherwise called petrol through the DSDP and the NFSF arrangement in 2018.

    This, he said represented 62 per cent increase over the 2017 supplies of 9.807 metric tonnes.

    “As at today, the NNPC has 2.98 billion litres, equivalent to over 59 days sufficiency at 50 million litres daily evacuation,” he said

    He added that the corporation’s depots had been resuscitated and put to use through decanting of over 140 million litres of PMS nationwide, explaining that systems 2B and 2E pipelines supplying petroleum products to South West, South-South and South East Regions had been resuscitated.

    On the Industry milestones in the outgone year, Baru disclosed that the Egina project had achieved First Oil at 11.20pm on Dec. 29, 2018 while he noted that the Egina Floating Production Storage and Offloading, FPSO, vessels was currently adding 200,000 barrels of oil per day to the country’s crude oil output.

    He further stated that Nigeria’s crude oil daily production recorded an upward swing of about 2.09 million barrels in 2018, translating to a nine per cent increment, compared with the 2017 average daily production of 1.86 million barrels.

    Compared against the low-level daily crude oil production in 2016 and what obtains now, Baru, said the nation had maintained a line of consistent year-on-year improvement.

    He explained that the average production from NPDC’s operated assets alone grew from an average of 108,000 of oil per day (bod) in 2017 to 165,000bod in 2018.

    He described the feat as the strongest production growth within the oil Industry in recent times, even as he added that it was worth being celebrated.

    The GMD said NPDC’s equity production share which stands at 172,000bod, representing about eight per cent of national daily production, was no less impressive.

    He added that the desired results were the outcomes of initiatives his Management team intended, among which, he noted, were the Asset Management Team (AMT) structure, Strategic Financing, Units Autonomy and security architecture framework.

    Baru promised that NNPC would stick to the Repayment Agreement with the JV Partners while transiting to self-funding IJV modes with the corporations’ partners.

    “Tiding up the Cash Call issues has led to increased commitment and enthusiasm to invest in Nigerian Oil and Gas Industry even as it has also boosted NNPC’s credit profile internationally,” he added

    Baru highlighted the achievements of NNPC in the Upstream sector by listing other milestones achieved by his team to include: reduction in contracting cycle for Upstream Operations to nine months from an average of 24, even as the corporation targeted a six-month cycle.

    Others include lowering of production cost from 27 dollar per barrel to 22 dollars per barrel; and improving on the security situation in the Niger Delta through constructive engagement and dialogue with relevant stakeholders.

    Baru revealed that in the frontier basins, NNPC had intensified explorations activities in the Benue Trough, with the expected spudding of Kolmani River Well 2 on Jan. 19, 2019.

    He explained that activities would resume in the Chad Basin as soon as there was a green light on the security situation in the enclave.

    In the Midstream, the NNPC GMD stated that in 2018, Nigeria achieved an average national daily gas production of 7.90bscf, translating to three per cent above the 2017 average daily gas production of 7.67bscf.

    He said out of the 7.90bscf produced in 2018, an average of 3.32bscfd (42%) was supplied to the Export market, 2.5bscfd (32%) for Reinjection/Fuel Gas, 1.3bscfd (16%) was supplied to the domestic market and about 783mmscfd (10%) was flared.

    The GMD stated that out of the 1.3bscfd supplied to the domestic market, an average of 71mmscfd went to the Power Sector, while 470mmscfd was supplied to the Industries and the balance of 69mmscf delivered to the West African Market through the West African Gas Pipeline (WAGP).

    Baru said NNPC would bridge the medium-term domestic gas supply deficit by 2020 through the corporation’s Seven Critical Gas Development Projects (&CGDPS).

    According to him, a reputable Project Management consulting firm is collaborating with an NNPC team to achieve accelerated implementation of the projects.

    He assured that full implementation of the project would boost domestic gas supply from about 1.5bscf/d to 5bscf/d by 2020, with a corresponding 500 per cent increase in power generation and stimulation of gas-based industrialization.

    Baru said all existing power plants in the country now had a permanent gas supply pipeline infrastructure, even as he stressed that the corporation would continue to expand and integrate its gas pipeline network system to meet increasing domestic gas demands.

  • We'll revive refineries to full functional capacity before end of 2019 – Kachikwu

    We'll revive refineries to full functional capacity before end of 2019 – Kachikwu

    The Minster of State for Petroleum Ibe kachukwu on Thursday assured Nigerians that the federal government will do everything possible to revive refineries in the country to full functional capacity before end of 2019.
    The minister said it will be sad if the nation’s refineries are not functional by the end of next year.
    He added that the administration is committed to ensuring that the importation of petroleum products is curtailed.
    Kachukwu spoke at Ibigwe-Ohaji in Ohaji\Egbema council area of Imo State during the ground-breaking for construction of the 5,000 BPD Modular Refinery by Walter Smith petro-chemical limited.
    The project is being partnered by the Nigerian Content Development and Monitoring Board (NCDMB)
    He said that the Buhari administration was committed to ensuring that the nation’s refineries became functional by the end of 2019.
    “It would be sad if by the end of 2019 we are still importing fuel from abroad.
    “So, we are committed in repairing the refineries; by that we can at least process about 500,000 barrels of crude per day.
    The policy of this administration is `go back to refining about 20 per cent of our crude which will move to 50 per cent in the next five years’.
    The Minister who commended management of Walter Smith for partnering the NCDMB to realize the project said that he was hopeful that in 18 months the modular refinery would be inaugurated.
    Executive Secretary of the NCDMB, Mr Kesiye Wabote, said the Board invested US $10 million to catalyze the development of the Modular refinery and took 30 per cent equity in the project.
    He added that the NCDMB would divest when the modular refinery was fully developed and operational.
    Wabote pointed out that NCDMB was promoting the Walter Smith Modular refinery as part of its capacity development mandate .
    He said that the investment was also in line with the Nigeria Content 10- year strategic plan.
    The Chairman of Walter Smith , Mr Abdulrazaq Isa, said that the Walter Smith 5,000 BPD Modular refinery was conceptualized in 2011 to mitigate the frequent outage of the third-party export trans-Niger pipeline.
    He added that it was to optimize the full value of the country’s produced crude through in-country products for the domestic market .
    “When operational in 18 months time we will.produce per day: Naphtha – 24,643 liters, Kerosene – 54,691 liters, Diesel – 300,168 liters, HPFO – 409,710 liters.
    “The refined products will be sold and evacuated from the refinery via dedicated trucks from bay five truck rack where products are loaded into the tankers.
     

  • Nigeria spends N92bn yearly as running cost of refineries

    The Nigerian National Petroleum Corporation (NNPC) spends an average of N92 billion yearly to run the three refineries in the country even though they are operating at half of their installed capacity.

    This makes them in the league of refineries with the highest operating costs worldwide, according to official Refinery Financial Performance data analyzed by Daily Trust.

    The data showed that in the last three years alone, N276.872 billion has been spent as operating expenditure or OPEX on all the refineries.

    According to information sourced from leading refinery service advisory companies, OPEX or operating expenditures include expenses made on refinery personnel, maintenance, administrative, cost of chemicals and additives as well as catalysts, utilities (including electric power, water) among other general administrative expenses.

    Operating costs of a refinery vary widely across countries and regions and such costs depend on multiple factors such as size and the complexity of the refinery, among others.

    Guzzling funds for doing nothing

    In 2015, N87.3 billion was expended as OPEX on the three plants located in Port Harcourt, Warri and Kaduna. The cost to run the refineries was N87.1 billion in 2016 but rose by 17.4 percent to N102.3 billion in 2017, according to the official data.

    Despite suffering intermittent hiccups, months of low capacity utilization and zero crude refining at times, the data showed that the Kaduna refinery (KRPC) accounted for the highest operation costs within the last three years.

    The Port Harcourt refinery (PHRC) adjudged as best performing among the three, gulped N96 billion while the Warri refinery famous for frequent process unit downtime soaked up N122.9 billion as operations cost.

    Findings also showed that it is difficult to compare operating costs from different refiners/oil companies as they are not reported regularly and on a common basis.

    However, world’s leading performance improvement company HSB Solomon Associates LLC, in one of its study of competitive refinery practices reported that for a refinery to be economically viable, its operating cost must be low.

    According to one of HSB Solomon Associates’ report, the least-efficient refineries typically have high maintenance costs, low energy efficiency and high personnel usage.

    Daily Trust analysis showed that based on the above indication, the country’s refineries can pass in the category of least-efficient and economically unviable among its global peers.

     

    Culled from DailyTrust

  • Dogara speaks on why House is investigating state of refineries

    Dogara speaks on why House is investigating state of refineries

    Speaker of the House of Representatives, Hon Yakubu Dogara has restated that the House of Representatives is bent on ensuring that due process is followed in governance business, and will continue to insist that public investment be managed professionally and profitably.

    Hon Dogara stated this while speaking at a public hearing organised by the House of Representatives Adhoc Committee on the investigation of the state of the nation’s four refineries, their tune around maintenance to date and regular/modular licensed refineries in the National Assembly.

    He said the investigation is aimed at determining whether it is beneficial for the government to continue to pump in public funds into refineries and still have to allocate crude oil for the same purpose of refining, as well as the status of all the refineries, their turn around maintenance and ascertain why holders of license have refused to utilise them.

    The speaker said, “Considering the importance of the turn-around maintenance of the four refineries as well as ensuring that the process is carried out in line with Public Procurement Act and other financial regulations for the benefit of the nation, the committee is expected to focus and act within the following terms of reference given to it by the House, namely:

    i. ascertain the viability of continuing investment of public funds on the nation’s four(4) refineries and allocation of 445,000 bpd crude utilization for the same purpose;

    ii. determine the current utilization level of Warri, Kaduna and Port Harcourt refineries;

    iii. carry out a comprehensive investigation on the turnaround maintenance (TAM) carried out to date on the refineries and

    iv. identify the private and corporate individuals that have refused to utilize the license and(regular and Modular), the readiness and status of all current holders and report back within 90 days for further legislative action.”
    He assured Nigerians that the House of Representatives will pursue all necessary provisions within the ambit of the law to support transparency, accountability, as well as to ensure that due process is followed in governance business in both the public service and other statutory organisations.

    “ We will continue to insist that public investment is managed professionally and profitably,” he added.

     

  • No plans to concession or sell refineries – FG assures stakeholders

    No plans to concession or sell refineries – FG assures stakeholders

    The Federal Government on Wednesday debunked rumours that it has kick started the process of selling the refineries in the country.


    This was revealed by the Minister of State for Petroleum Resources, Mr Ibe Kachikwu who represented President Muhammadu Buhari at the 5th Triennial National Delegates’ Conference of the Petroleum and Natural Gas Senior Staff Association of Nigeria(PENGASSAN) on Wednesday in Abuja.

    The theme of the conference was: “Emerging Trends in the Oil and Gas Industry and its Impacts on Labour Movement in Nigeria.”


    The minister said that it was imperative to make the clarification as there were rumours, especially from people who should know better.
    According to him, there has been no attempt and there is no approval to concession refineries or sell refineries.


    “I keep hearing discussions all over the place, especially from people who should know better.


    “What we have approval for is to bring in a financing mechanism that will enable us to finance and develop and upgrade the refineries as they are.
    “The reality is that once private sector players begin to build their own refineries, whatever we are afraid of will disappear.


    “And unless we begin to move very rapidly and quickly to position these refineries in such a way that they can compete, we will lose the refineries completely together with the job scale that exist there right now.


    “My drive is to see that those investments goes through a transparent process and the announcement that you hear about selection has not happened, ” he said.


    The president, however, said there was need to bring in fund and best practices that would elevate the institutions to the level where they should work for the country as the nation was losing money.


    Buhari decried the drop in the oil price, saying that the prices have tumbled and have continued to struggle in spite of all the works done in Organisation of the Petroleum Exporting Countries(OPEC) to stabilise price.


    He also noted that that investments are declining at an alarming rate and there are new entrants into the industry.


    According to him, only those who are able to look at their technology and new ways of doing business are going to survive the oil industry of tomorrow.


    “As it concerns Nigeria, we must work inclusively hard to deal with some of the difficulties that we will continue to see in our production platforms.


    “Whether it is the militants which is a key component or the slow speed of approvals or whether the fact that our policies are not even as fast as they should to catch up with changing times.


    “We have to influence policies and we have got to work extremely hard to help drive the change that is imperative is the sector to survive.

    “Infrastructural deficit is a key component.

    “We lack infrastructure in the sector, whether it is downstream or upstream or oil and gas.

    “The absence of infrastructure has made it impossible to have a holistic private sector participation.
    “We have got to find policies that will encourage private sector participants to play a key role. coupled with that is the fact that countries are moving away from oil, ”he said.


    The president called on the union to see other opportunities in terms of job creation and employment in the oil sector.


    He also called on them to see gas as the future new horizon of opportunity for the country and urged them to take advantage it.


    He stressed the need to end gas flaring within the next three years.

     

     

     

    NAN