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Tag: Refinery

  • Tragedy as explosion rocks illegal refinery in Delta

    Tragedy as explosion rocks illegal refinery in Delta

    One person was allegedly killed while about five others sustained varying degrees of injuries after an explosion rocked an illegal refinery in the creeks of Warri River in Warri South-West Local Government Area of Delta State on Thursday afternoon.

    Sources said that the victims were sighted at Warri Miler Jetty as they were rushed to a private hospital in a fast-moving speed boat.

    One of the sources, who prefers anonymity said that the victims got burnt when fire gutted their local refinery site as they were busy refining petroleum products in the creeks.

    Details in connection with the source of the explosion were, however, unclear as of the time of filing this report.

    Also, the identities of the victims could not be determined but some of them were said to be from the Northern part of the country.

     

  • Dangote seeks loan deals to finance Lagos refinery project, cost rises $19bn

    Dangote seeks loan deals to finance Lagos refinery project, cost rises $19bn

    President of Dangote Group, Aliko Dangote is in talks with some of the world’s biggest oil traders to help finance his mega refinery project in Lekki, Lagos, Reuters has reported quoting close sources to the project.

    The 650,000 barrel-per-day refinery, once complete, will be the continent’s largest plant and redraw major trade flows of crude and fuel in the Atlantic basin.

    The refinery has been delayed by several years and the cost has ballooned to $19 billion from Dangote’s earlier estimates of $12-14 billion.

    Construction was also delayed due to COVID-19 outbreaks among workers at the site and delays getting materials, two sources with knowledge of the project said.

    Many industry sources do not expect any products before the second half of next year.

    Hit by economic consequences of the COVID-19 pandemic and soaring construction costs, Dangote needs a cash injection.

    Nigeria’s state oil firm NNPC has agreed to buy a 20% stake in the refinery for about $2.8 billion but Dangote is looking for outside cash.

    NNPC’s head Mele Kyari said a process was on-going to raise $1 billion with Afreximbank to fund part of its stake purchase.

    The billionaire has held talks as recently as a month ago with executives from the world’s top two oil traders – Trafigura and Vitol.

    Trafigura and Vitol declined to comment. A spokesperson for the Dangote Group did not respond to multiple requests for comment.

    Two sources with direct knowledge said the option of raising another $500 million from a trade house or consortium was being actively explored.

    The details of a potential loan from a trading firm have not been finalised but the trader could receive a long-term contract to supply crude and receive cargoes of refined products as repayment.

    Swiss traders like Vitol along with Nigerian firms, have cashed-in for years in gasoline-short Nigeria by supplying mega tenders and being part of lucrative crude-for-fuel swap deals for over a decade.

    Getting a hold of Dangote’s fuel will give the trader a stranglehold on a key set of new oil flows. Nigeria’s new oil bill, approved last month after nearly 20 years of political wrangling, has added fuel-import licence requirements that experts fear will give Dangote an effective monopoly.

    Under the new laws, the regulator will prioritize local refiners for import licences and volumes would be based on production capacity or market share.

    While Nigeria will remain open in theory to international trading houses, a partnership with Dangote would be the only way to guarantee a foothold in Africa’s biggest economy

    Despite being Africa’s biggest oil producer and exporter, Nigeria depends almost entirely on fuel imports after allowing its significant refining capacity, 445,000 barrels-per-day, to become dilapidated over several decades.

    Many past and current Nigerian officials, including President Muhammadu Buhari, have announced plans to refurbish them but political will has been lacking.

    The Natural Resources Governance Institute, a non-profit policy think tank, has previously pointed to the moribund refineries as a key focus of oil corruption and waste in the country.

    Source: Reuters

  • Atiku to Buhari: Use $1.5bn Refinery Rehabilitation Fund To Build Hospitals

    Atiku to Buhari: Use $1.5bn Refinery Rehabilitation Fund To Build Hospitals

    Former vice president, Atiku Abubakar has advised the President Muhammadu Buhari led Federal Government to, instead, use the $1.5bn proposed for the rehabilitation of the Port Harcourt Refinery to build hospitals for Nigerians.

    “Rather than spend $1.5 billion on a loss-making refinery, would it not make better economic sense, as well as ensure social justice, to use that money to build mass hospitals for our people,” Atiku tweeted on his official handle on Thursday evening, restating his disapproval over the matter.

    “And provide our doctors with better working conditions, so every Nigerian has access to quality healthcare?”

    TheNewsGuru.com, TNG reports that the Federal Government last month announced plans to rehabilitate the refinery. Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva had explained that the first phase of the rehabilitation will be completed in 18 months which takes the refinery to a production of 90 per cent of its capacity.

    According to him, the second phase will be completed in 24 months, while the final phase will be completed in 44 months.

    The move generated controversy with critics saying it is not the right step.

    Atiku had earlier said that “to therefore budget the sum of $1.5 billion to renovate or turn around the Port Harcourt refinery would appear to be an unwise use of scarce funds at this critical juncture for a multiplicity of reasons.”

    But despite fears over the project, the government has assured that every cent of the $1.5 billion proposed for the rehabilitation will be accounted for.

    “I can look at the camera; they (Nigerians) can hold me accountable and hold this government accountable for every dollar, every cent on this project and ensure that we deliver a refinery that works,” the minister added.

    He also explained that the move will not significantly add to the nation’s burden, stressing that the government does not intend to borrow all the funds to rehabilitate the refinery which he said would be functional in 18 months.

  • We need $10 billion to build new refinery in Nigeria – NNPC

    We need $10 billion to build new refinery in Nigeria – NNPC

    The Nigerian National Petroleum Corporation (NNPC) has said a whopping $10 billion is needed to build a new refinery in the country, far beyond the $1.5 billion earmarked for the rehabilitation of the Port Harcourt refinery.

    TheNewsGuru.com (TNG) reports Mele Kyari, NNPC Group Managing Director, disclosed this on Monday in Abuja while engaging newsmen on issues emanating from the proposed rehabilitation of the Port Harcourt refinery approved by the Federal Government last week.

    Kyari further elaborated on the sum, stressing that to construct a refinery the size and nature of the Port Harcourt refinery in the country, it will cost the federal government around 7 billion dollars and 12 billion dollars.

    He, however, stressed the country does not have the financial muscle now to build a new refinery going by the economic situation of the country.

    He also said that the country would have to live with importation of petroleum product, especially Premium Motor Spirit (PMS), for another four years if the country ventures into building a new refinery.

    “We have people saying why not build a new one; why will you repair an old refinery with 1.5 billion dollars? The fact is available even by Google search, what it takes to build a refinery of this status today.

    “It will be difficult for the country to build a new refinery as it will take four years for it to commence production. It is around 7 billion dollars and 12 billion dollars to construct a refinery of this nature (Port Harcourt refinery).

    “This is the estimate you see in public space and there are things you do outside the construction battle-limits like the utilities that are never accounted for when estimates of this nature are done.

    “Typically, there is an additional 25 per cent cost for construction battle-limits, so, when you say a refinery can be built at 7 billion dollars or even 10 billion dollars, also think of that 25 per cent.

    “With today’s estimate, you cannot build a refinery at any cost below these amounts, that means that the option you have is to scrap this and build a new one, and we all know that we don’t have that resource.

    “If we start a new refinery of this nature today, it can’t work in less than four years, therefore, it means we will continue to import petroleum products in the next four years or more,” Kyari said.

    According to him, the country did not do well in maintaining the refineries in the past 25 years as the last turnaround maintenance of the Port Harcourt refinery happened 21 years ago.

    He noted that the huge cost of rehabilitation of the refinery witnessed in this present time was as a result of poor maintenance of the plant over a period of time

    “What we are seeing today is the cumulative effect of our lack of doing proper maintenance over a period of time but something has changed today and this is why we are proud to tell Nigerians that we have done something different in the background.

    “This is because we have a government that allowed us to play our role without interference in terms of our procurement exercises and this made the process go unhindered.

    “This has also allowed us to involve every stakeholder including NUPENG and NEITI, to ensure openness and accountability of the process,” Kyari said.

    We are doing rehabilitation, not turnaround maintenance – NNPC

    Meanwhile, on Monday also, elaborating on the Port Harcourt refinery, Kyari explained that the 1.5 billion dollars approved for the refinery was for complete rehabilitation and not turnaround maintenance.

    Kyari said that the refinery would work in optimal capacity at the completion of rehabilitation programme.

    “We are not doing turnaround maintenance, we are doing rehabilitation of the refinery, and it is very different; it means that we are replacing certain major components.

    “We are introducing some items that ordinarily we won’t need to do in turnaround maintenance and there are major shift in the status of the plant that we have to do and it is not done during turnaround maintenance.

    “During rehabilitation, by the 18th month, part of this plant will begin to produce particularly the gasoline plants.

    “In rehabilitation, we normally don’t shut down the plant completely, we repair a segment of it, and then it starts working, and then, you move to the next segment.

    “You continue to scale up and that is why, within the four-year period, the contractor would have completely left your premises.

    “What it means in a technical sense is that in 18 months, we will see production coming from that plant; we will follow it plant by plant until we are completely done,” Kyari said.

    The NNPC GMD also said that the process of rehabilitation started about 10 years ago but was slowed down due to a number of mistakes that occurred along the line.

    He, however, noted that an Italian company had been contracted for the job with one billion dollars financing arrangement from the Afreximbank.

    “This process started 10 years ago and a number of mistakes happened leading to the enormous delay we have seen in this process because there were a lot of interferences in the past but these are gone.

    “Initially, we thought that the best way to go was to go to the original builder but it wasn’t the right strategy.

    “Another way of making this project work was the introduction of borrowing for the repair work because when you borrow, the lenders will put conditions and one of the conditions is that it should be maintained under ‘own and earn’.

    “This means that the NNPC will not operate this plant as a basic requirement of the financing institution. The financing partner will ensure that the contractor will work efficiently.

    “Importantly is that the contractor O&M gave a guarantee that the facility will operate for the duration of the loan and the fact the project will be done under a financing structure supported by Afreximbank.

    “The bank has promised a 500 million dollars loan in the first instance and additional 500 million dollars making it one billion dollars and the condition is for the loans to be repaid from the operations and proceeds of this plant,” Kyari added.

    He expressed optimism that the refinery would work optimally for the next 15 years after the rehabilitation.

  • NNPC defends decision to spend $1.5bn to rehabilitate Port Harcourt refinery

    NNPC defends decision to spend $1.5bn to rehabilitate Port Harcourt refinery

    The Nigerian National Petroleum Corporation (NNPC) yesterday vigorously defended the approval of a whopping $1.5 billion for the rehabilitation of the Port Harcourt refinery, maintaining that apart from following due process, building a new refinery in the class of the one in Rivers will cost the federal government between $7 billion and $12 billion.

    Group Managing Director of the corporation, Mallam Mele Kyari, who spoke in Abuja, stated that the decision to revamp the old facility was further taken because constructing a new refinery will take a period of four years, during which Nigeria must continue to import products.
    The NNPC helmsman argued that there was no basis for comparison between the Port Harcourt refinery and the one sold by Shell in America for $1.2 billion in terms of capacity, describing the public comments emanating thereof as curious.

    He disclosed that the actual cost of the project is about $1.34 billion, noting that the additional expenses include taxes and other duties that could come up.

    “The real cost is $1.34 billion. Even then you could argue and say why you wouldn’t build a new refinery. We have also seen some curious comparisons that shell sold one of its refineries for $1.2 billion and that it’s even better than our own.

    “This is mundane. Even a Google search will reveal that it was built in 1915 and it’s a 107,000 barrels per day refinery. It has been on shut down by the regulators since early last year. Not only that, when you buy a refinery you buy its assets and the liabilities,” he argued.

    He maintained that many people do not know the financial transactions that go into some negotiations, saying that it is needless to compare a combined refinery of 210, 000 barrels to a much smaller and much older refinery which has many issues with regulators.

    “Simple due diligence was not conducted before those comments were made. They have asked why we don’t just build a new one. What does it take to build a refinery of this status today? It’s anywhere between $7 billion to $12 billion to construct a refinery of this nature. This is what we call battery limit construction. That’s the estimate you see in the public space.

    “There are things you do outside the battery limits like the tank and other utilities that are never accounted for when the estimates of this nature are done. That’s about 25 per cent of the total cost. So, when you say refineries can be built for $6 billion or even $10 billion, you should also think about the 25 per cent you will add to it,” Kyari said.

    He said that another option would have been to scrap the current one and build a new one, but added that the resources are not available while the banking sector is not ready to put in the money because they no longer fund oil projects of that magnitude.

    Kyari said that the refineries are national assets that must be used to ensure energy security for the country, maintaining that if a new refinery is started, it cannot become functional in less than four years, which means Nigeria will keep importing in the next four years.
    According to him, even for national strategic purposes, that would be a wrong decision, with the last turn-around-maintenance of the Port Harcourt having been done 21 years ago.

    The GMD stated that the current huge cost of rehabilitation was because the last turn-around-maintenance was badly carried out.

    He posited that all stakeholders and agencies of the government were involved in the process leading to the award, saying that it wasn’t a TAM that was currently being carried out but total rehabilitation, which means that major components will be replaced, new items will be introduced and an upgrade of the plant.

    Kyari argued that the process went through the Bureau of Public Procurement and other such bodies, saying that he was confident that the best decision was taken after the tender process.

    He stressed that the process was delayed for the past 10 years because of unwarranted interferences and strategy problems, including going to the original refinery builders, which he said was the wrong thing to do.

    Kyari said that the borrowing angle was introduced because typically, lenders will give conditions, one of which is an Operations and Maintenance contract arrangement, meaning that NNPC will not operate the plant, as it will be done in consonance with what he described as the best global practice.

    “More than that, the contractors will give a guarantee that it will work for such a period of time. That’s part of the requirements which was absent in previous ones under the TAM arrangements,” he said.

    He vowed that the plant will work and the loans will be repaid, saying that he was confident that in the next 15 years, the plant will still be running.

    The NNPC helmsman said in 18 months, gas will be obtained from the plant and will eventually, scale up until the contractors leave the site, unlike a new one that will require the whole plant to be completed before it starts functioning.

    According to him, the loan will be repaid from when the refinery becomes functional, adding that a refinery can produce a margin of $4-$7 per barrel which will be used to finance the loan.

    “What we have done is to put in place a transparent process. This has not always been done. The EPC contract was thrown open. It has never been done. We have invited McKenzie to support us. We have taken the control from the NNPC, including the selection of EPC contractors,” he said.

  • Nigeria doesn’t have resources to build new refineries – Kyari

    Nigeria doesn’t have resources to build new refineries – Kyari

    The Nigerian National Petroleum Corporation (NNPC) has said that the country does not have the financial muscle now to build a new refinery going by the economic situation of the country.

    Mele Kyari, NNPC Group Managing Director, disclosed this on Monday in Abuja while engaging newsmen on issues emanating from the proposed rehabilitation of the Port Harcourt refinery approved by the Federal Government last week.

    Kyari said building a new refinery now would cost the country about 10 billion dollars which was far beyond the 1.5 billion dollars earmarked for the rehabilitation of Port Harcourt refinery.

    He also said that the country would have to live with importation of petroleum product, especially Premium Motor Spirit (PMS), for another four years if the country ventures into building a new refinery.

    “We have people saying why not build a new one; why will you repair an old refinery with 1.5 billion dollars?”

    He continued: “The fact is available even by Google search, what it takes to build a refinery of this status today.

    “It will be difficult for the country to build a new refinery as it will take four years for it to commence production.

    “It is around 7 billion dollars and 12 billion dollars to construct a refinery of this nature (Port Harcourt refinery).

    “This is the estimate you see in public space and there are things you do outside the construction battle-limits like the utilities that are never accounted for when estimates of this nature are done.

    “Typically, there is an additional 25 per cent cost for construction battle-limits, so, when you say a refinery can be built at 7 billion dollars or even 10 billion dollars, also think of that 25 per cent.

    “With today’s estimate, you cannot build a refinery at any cost below these amounts, that means that the option you have is to scrap this and build a new one, and we all know that we don’t have that resource.

    “If we start a new refinery of this nature today, it can’t work in less than four years, therefore, it means we will continue to import petroleum products in the next four years or more,” Kyari said.

    According to him, the country did not do well in maintaining the refineries in the past 25 years as the last turnaround maintenance of the Port Harcourt refinery happened 21 years ago.

    He noted that the huge cost of rehabilitation of the refinery witnessed in this present time was as a result of poor maintenance of the plant over a period of time

    “What we are seeing today is the cumulative effect of our lack of doing proper maintenance over a period of time but something has changed today and this is why we are proud to tell Nigerians that we have done something different in the background.

    “This is because we have a government that allowed us to play our role without interference in terms of our procurement exercises and this made the process go unhindered.

    “This has also allowed us to involve every stakeholder including NUPENG and NEITI, to ensure openness and accountability of the process.”

  • BREAKING: FEC approves repair of Port Harcourt refinery

    BREAKING: FEC approves repair of Port Harcourt refinery

    The Federal Executive Council (FEC) presided over by President Muhammadu Buhari on Wednesday approved 1.5billion dollars for the rehabilitation of the Port Harcourt Refinery in Rivers State.

    Minister of State for Petroleum Resources, Timipre Sylva, made this known when he briefed State House correspondents on the outcome of the Council meeting held at the Presidential Villa, Abuja.

    According to him, the rehabilitation will be done in three phases of 18, 24 and 44 months.

    The minister stated that the rehabilitation was in fulfilment of Federal Government’s desire to resuscitate the country’s refineries to reduce the cost of processing petroleum products as well as boost the economy.

    He said: “The Ministry of Petroleum Resources presented a memo on the rehabilitation of Port Harcourt Refinery for the sum of 1.5 billion dollars, and that memo was 1.5 billion dollars and it was approved by council today.

    “So, we are happy to announce that the rehabilitation of Port Harcourt refinery will commence forthwith. It is in three phases.

    “The first phase is to be completed in 18 months, which will take the refinery to a production of 90 per cent of its nameplate capacity.

    “The second phase is completed in 24 months and all the final stages will be completed in 44 months and consultations are approved.

    “I believe that this is good news for Nigerians. The rehabilitation of refineries have commenced.”

    The minister also disclosed that an Italian company would undertake the repairs and a maintenance company would also be put in place, to ensure effective maintenance culture.

    “The contractor that was approved by council today is Tecnimont, SPA of Italy.

    “Talking about operations and maintenance, that has been a big problem for our refineries and that was also exhaustively discussed in council and the agreement is that we are going to appoint a professional operations and maintenance and operations company to manage the refinery when it is finally rehabilitated.

    “It is actually one of the conditions presented by the lenders, because the lenders said they can give us the money if we have a professional operations and maintenance company and that already is embedded in our discussions with the lenders. We’re not going back on that,” he said.

    According to Sylva, the needed fund for the rehabilitation work has been earmarked, saying the funding will be shouldered by the federal government, Nigeria National Petroleum Corporation (NNPC) and Africa Export-Import Bank AFREXIM.

    The minister assured that rehabilitation works on Kaduna and Warri refineries would also be carried out on or before May 2023.

  • Dangote to start crude oil production in July

    The President, Dangote Industries Limited, Aliko Dangote, will begin oil production in July from two assets he acquired from Royal Dutch Shell Plc.

    Dangote, Africa’s richest man, is working with Chinese and Malaysian contractors and has completed a development plan for the Kalaekule field on its Oil Mining Lease 72 asset.

    The Group Executive Director, Dangote Industries Limited, Devakumar Edwin, was quoted by Bloomberg as saying these in an interview.

    He said work would then move to an undeveloped KI discovery on Block 71, a small shallow water asset in southeastern Niger River Delta.

  • State of the nation: Urhobo nation takes stand with PANDEF, present demands [Statement]

    Gentlemen of the press, I welcome you all to this briefing to discuss with you issues pertaining to the welfare of the Urhobo People in the context of the progress of Nigeria.

    First, however, let me introduce to you the Urhobo Nation and its principal cultural agency, Urhobo Progress Union, which I currently head as President-General.

    Founded in 1931 to meet the development needs of the Urhobo people, who represent the fourth (4th) largest ethnic nationality of our country, Urhobo Progress Union is arguably the oldest socio-cultural organization in Nigeria. UPU has spearheaded the campaign for the progress of the Urhobo people from British Colonial Times to the present time, including the founding of the famous Urhobo College, Effurun, in 1948. That campaign for progress has continued to the present time as my administration of the UPU strives to build an Urhobo University and introduce a micro-finance bank into Urhoboland.

    We are aware that there are aspects of the welfare needs of the Nigerian People that can only be handled by Constitutional changes. However, we are equally aware that the President of Nigeria is empowered by the Constitution to make necessary changes and introduce policies for the welfare and good governance of our beloved Country. It is in the context of that awareness that we address the following issues to your attention in respect of the Urhobo people:

    1. Restructuring of Nigeria

    There has been a great deal of discussions and contributions by various Nigerian Communities to the need to restructure our constitutional form of governance. What the Urhobo Nation, like the rest of the South South is asking for is restructuring, politically and economically to have a true federation. I stand with PANDEF on the implementation of the 16 point demand of the Niger Delta people, which was presented to President Buhari in 2016. Wealsotold President Buharithis muchwhen he granted audience to the Urhobo Progress Union and Urhobo Traditional Rulers last month. The Urhobo people have on their own prepared a paper titled “Urhobo Positon on Restructuring Nigeria” on this subject. We attach it to this address.

    Meanwhile, we urge the Federal Government to honour the principle of Federal Character, which respects the unique needs of Nigerian Peoples. We fear that the principle of federal character has not been fairly applied to the Urhobo people. For instance, we think it is wholly unfair that in the Government of more than 30 Ministers there is not a single Urhobo appointee as a Minister – despite the fact that Urhobo must be counted as one of the principal ethnic nationalities of Nigeria, in terms of its contributions in scholarship, commerce, industry, sports and entertainment. We believe we have excellent candidates who will serve faithfully and competently in the Government as Ministers. We urge the government to consider this matter urgently.

    2. Oil Industry

    There is little doubt whatsoever that Urhoboland has been one of the major contributors to Nigeria’s oil wealth. Urhobo is the largest onshore producer of Oil and Gas in the Nation. Despite that fact, it is distressing that no Urhobo person owns a marginal field, or has been appointed into the Board of NNPC. We ask the President to use his good offices in appointing an Urhobo man to the Board of NNPC, as well as allocating marginal fields to competent Urhobo oil businessmen.

    3. Federal University of Petroleum Resources (FUPRE)

    We believe that the establishment of FUPRE in Uvwie in Urhoboland is a wise venture. It is the only Petroleum University in the whole of Africa. We thank the Federal Government of Nigeria for locating it in our land.

    However, this institution is facingfundingproblems that only theFederal Government can resolve. The underfunding of FUPRE is crippling the development of the University. We strongly urge His Excellency to quickly intervene in this matter so that this vital institution will rise to its mission. Any considerations for including the financial needs of FUPRE in a Supplementary Budget will be most welcome and appreciated by the Urhobo people. This issue was raised with the President during our courtesy visit to the Villa, last month.

    4. Representation in the Federal House of Representatives

    We wish to bring to the attention of the President the disturbing fact that Urhobo is under-represented at the Federal House of Representatives. In comparison with other Constituencies in Eastern and Western Niger Delta, Urhobo’s representation by three members is unfair. In terms of population per constituency, Urhobo should be represented by not less than six members of the House of Representatives.

    We understand that the President cannot change this by himself; but we urge that the President should take this imbalance into account in addressing the ills against the Urhobo Nation, and in allocating resources.

    5. Proposed Riverine Bill

    Urhobo Progress Union understands that there is a Riverine Bill that is being consideredintheParliament. Wewish toemphasiseto thePresident that manyNiger Delta Rivers flow through Urhoboland into the Atlantic Ocean. Any riverine policies on Nigeria’s Upland Rivers will ultimately affect the well-being of our people.

    We, therefore, ask that our leaders should be closely consulted on any bill that will affect the waterways flowing through Urhoboland. We ask that the President and Parliament should note our interest in this matter.

    6. Unused Military Lands in Urhoboland

    Urhobo people have been generous in allocating lands for use by the Nigeria Armed Forces, particularly in Uvwie Okpe and Oghara Kingdoms. A good amount of lands that were so allocated have not been used by the Armed Forces.We understand that in many instances parcels of lands allocated for use of the Armed Forces have now been converted for private and commercial use.

    Urhobo Progress Union believes that this is wrong practice. We urge thatany unused land should be returned to the Community which donated it to the Armed Forces. We await the immediate intervention of the President in this matter; as he promised us last month, at the Villa visit.

    7. Herdsmen Menace

    This thorny issue of herdsmen’s cattle grazing on farmlands – especially in Uwheru, Avwraka (Abraka), Ughelli and Eku Communities; has become a matter of major concern to Urhobo Progress Union and Urhobo Leadership, in large part because it has resulted in many instances of the killing of innocent farmers. This is of course a broader problem affectingmany communities inSouthern Nigeria. SomeStates have enacted their own Legislation against uncontrolled grazing in farmlands.

    While it is true that the livelihood of the herdsmen should be a factorto be considered by theFederalGovernment, wewish to makeit clear that thelivelihoodof our farmers are now under threat from this uncontrolled grazing that has involved the deliberate killings of farmers who have done nothing wrong but to go to their farms. We believe that it is the obligation of the Federal Government to protect farmers who ply their livelihood in their farms from armed killers, whether they are from inside or outside Nigeria. In the long run, uncontrolled grazing in farmlands is unsustainable. We urge the Federal Government to find a solution to this problem.

    Meanwhile, as a matter of urgency, we ask that these Urhobo farmers and their farmlands should be protected from the ravages of uncontrolled grazing and its associated violence. As a consequence, in many of these Urhobo communities,

    villagers now live in hunger, fear and total intimidation — leading to unnecessary food crisis.

    8. UPU TAKE ON THE PROPOSED REFINERY IN KATSINA

    I do not grudge the president or the government for proposing a refinery in Katsina or any other place forthat matter. Butthe Urhobo Nation wants the Refinery in Ekpan to function optimally. We also want modular refineries to come on stream in Urhobo land. We want the gas plant and other companies located in Urhobo and environs to function to improve the local economy. Also, other existing refineries should be made to function optimally before government thinks of building new ones. But ideally, I feel the government should such huge projects to the private sector and only act as an enabler, especially in this era of privatization and private sector-driven economy.

    9. THE LOCK DOWN OF LAGOS

    During our visit to the president, we requested for the Nigerian Navy to surrender nine-tenth of the Sapele Port, which is currently idle for commercial activities. The Sapele Port was handed over to the Nigerian Navy some time ago, it is currently using only 10 percent of the Port. If the Sapele, Warri and Koko are made functional, the pressure on Lagos ports will be less. The economy of Delta State will also be boosted with employment being generated for thousands of our people. The chain impact will be much.

    Finally, we do want to subscribe to the President’s higher principles of governance that involve fighting corruption and terrorism in our Country. Both of these vices eat up the fabric of public morality and eventually weaken a nation’s capability to survive major crises in its history.

    We understand that the business of government is hard. We pledge that the Urhobo people and their cultural agency, Urhobo Progress Union, will assist any government of Nigeria that upholds the higher these principles. We pray that God will protect the country.

    Long Live the Federal Republic of Nigeria! Long Live Urhobo Progress Union!!

    OLOROGUN (DR.) MOSES OGHENERUME TAIGA, JP

    President-General, Urhobo Progress Union, UPU

  • Nigeria, Niger sign MOU on $2bn Hydrocarbon Pipeline, Refinery projects

    Nigeria and the Republic of Niger on Tuesday in Abuja signed Memorandum of Understanding (Mou) on the construction of two billion dollars Hydrocarbon Pipeline and Refinery in Nigeria.

    The signing of the MoU was witnessed by President Muhammadu Buhari and his Nigerien counterpart Mahammadou Issoufou at the new Banquet Hall, Aso Rock, Abuja.

    Speaking at the event, President Buhari described the cooperation on crude oil export from the Republic of Niger to Nigeria and construction of refinery facilities in Katsina State as a “win-win” for both nations.

    He noted that the initiative would not only provide a reliable market for the stranded crude from the Niger Republic but would also provide petroleum products for Nigeria.

    “Nigeria sees this cooperation on crude oil export from the Republic of Niger and construction of refinery facilities in Katsina State as a “win-win” for both nations.

    “The initiative will not only provide a reliable market for the stranded crude from the Niger Republic but will also provide petroleum products for Nigeria, as it aggressively pursues its aspiration on petroleum product self-sufficiency.

    “In addition, it is my hope that the current frontier exploration efforts in the Northern part of the country (Chad Basin, Gongola Basin, Sokoto Basin, Bida Basin and Benue trough) will also result in the provision of additional hydrocarbon inflow to the corridors of the proposed pipeline and a potential refinery around Kaduna axis.

    “I am happy that several productive engagements held between the Nigerian and Nigerien authorities have resulted in the positive agreements to progress with activities on this important project.”

    According to him, the project will be private sector driven with the full support of the governments of both countries.

    President Buhari expressed delight that already several expressions of interest from prospective investors were being received.

    President Buhari who inaugurated Steering and Technical Committee on the construction of the Hydrocarbon Pipeline and Refinery projects, said the committee would provide strategic leadership, direction and governance oversight for the project.

    “In this regard, a Steering Committee has been set up to be chaired by the Nigerian Minister of State for Petroleum Resources and the alternate chairman is the Nigerien Minister of Petroleum, to provide strategic leadership, direction and governance oversight for the project.

    “Further to this, a Senior level Joint Technical Team is carefully selected based on competence to develop the implementation roadmap and strategy on both the refinery and pipeline projects.

    “This team will be led by Nigeria’s Engineer Rabiu Suleiman supported by the DG Hydrocarbons of Niger Republic.’’

    The President, therefore, challenged members of the committee to come up with a detailed roadmap and guideline leading to actual execution of the projects by December.

    He stated that the detailed roadmap should cover the following: Bankable feasibility studies for both the Refinery and pipeline projects; Optimal project site, pipeline routes and details as well as security plan.

    The President also enjoined the committee to come up with selected consortia of investors for both the refinery and pipeline projects.

    President Buhari assured that Nigeria was committed to pursuing the partnership with vigour and determination, adding that Nigeria and Niger had “excellent relations for several decades, as neighbours sharing a long border with common cultural and historical ties.’’

    In his remarks, President Mahammadou Issoufou of Republic of Niger, who spoke in French, noted the signing of the MoU had constituted the basis for the mutually beneficial cooperation between the two countries.

    “We share common problems and should also share solutions.

    “Africa will only to develop if we work together and know what to do.

    “We only need to move into taking meaningful actions we are trying to develop the value chain for our mineral resources and product.

    “We will be happy to see barrels of crude oil refined in Niger and exported to Nigeria,’’ he said.

    One of the co-investors of the project and founder of Blak Oil Energy Refinery, Alhaji Ibrahim Zakari, disclosed that the refinery project would be sited at Mashi in Katsina state was worth two billion dollars.

    Zakari revealed that the project was projected to provide 2,500 direct and another 10,000 indirect employment opportunities to Nigerians.