AS federal lawmakers continued their review of activities in the Nigerian oil and gas industry yesterday, the contentious issue of fuel subsidy was again thrown up.

Specifically, the Petroleum Products Pricing Regulation Agency (PPPRA) told the House of Representatives Committee on Finance at the resumed public hearing in Abuja that in the past three years, the Federal Government spent N887 trillion on oil subsidy in the country.

The disclosure came as the committee queried the N1 trillion yearly deduction from the excess crude account for the operations of the agency.

Source:
http://www.guardiannewsngr.com/news/article06//indexn3_html?pdate=180908&ptitle=Govt%20spends%20N887b%20on%20oil%20subsidy,%20says%20PPPRA&cpdate=180908

The rate at which we ship our raw crude product to another country to later on get the refined product is alarming. If we’ve only spent 887b on oil subsidy within the past 3 years, who knows how much more we will spend in the next coming 10 years with global energy rising day in day out. I only hope those people running this sector are paying attention.

Please, anybody with information on below questions to shed more light on them. Thanks

 What is the current state of our three refineries? I heard that they were all recently recommissioned for production. Are they functioning up to their full capacity?
 What is the current state of Amakpe Refinery and when is their commissioning date?
 The Refinery/Refineries that is supposed to be built around Lagos axis, what stage are they at in their design phase?

they won't need to spend that much if they actually thought about repairing their refineries.

FELLOW COUTRYMEN


Our leaders are riding one long gravy train that has no terminus and we just have to stop it.

My question is -- with all this grammar about rising crude oil prices, budgets and benchmarks and so on and so forth,
[b][/b]what does it take to produce 1barrel of oil?
what does it cost to refine 1 lter of PMS/AGO?DPK or whatever?
what is the royalty paid on each barrel by the majors-- SHELL etc?
How long does it take to build a refinery?

To refine 1 barrel of oil, (building a typical refinery)

Goal: Separate Crude into specific products (boiling Points)

Design phases (Putting all these below into consideration)

Process Design Phase (About 6-12 months):
Process the resulting streams to:
 Remove Sulfur
 Remove contaminants
 Improve Characteristics
 Meet specifications
Processes Considered
 Gas Processing – Gases (Butane & Lighter)
 Gasoline Blending (Light Naphtha blended to produce gasoline)
 Catalytic Reforming (Naphtha catalytic reformed to produce gasoline)
 Hydrotreating – to produce Kerosene & Diesel
 Distillate Fuel Blending – Distillate Product
 Fluid Catalytic Cracking – Heavy gas Oil cracked to produce lighter material
 Coking
Blend streams to maximize profit subject to:
 Product demand and shipping time required
 Product specification
Find a home for all streams


Typical Products (refining Output) includes:
Liquefied Petroleum Gas (LPG)
Residual Fuel
Distillate
Kerosene
Diesel
Jet fuel
Asphalt
Gasoline (PMS)

Detail design Phase (6-12 months): Designing all specific piping, equipment and processes to work to properly. Answering all what if situations during this stage including safety issues

Construction Phase (12-18 months): Putting all the necessary piping and equipment on ground.


I hope this help

whats the big deal?
Billions are lost daily to corruption

@[b] @courage89 AND FELLOW COUNTRYMEN[/b][i][/i][color=#990000][/color]


Thank you bros, i appreciate your detailed info but what I want to know is how many (ego,owo,kudi)n naira.

In layman's language if it costs say 118 naira as cost of exploration and exploitation (including those fantastic oil sector wages and fringe benefits    ) per barrel and it is sold at say USD100 per barrel  ,it means the profit is USD99 per barrel . Multiply this by 2.8 million barrels per day you have USD 277,200,000 per day. With a production sharing contract (PSC ) of say 60/40 , we should expect  USD166,320,000.If the oil companies pay royalty  , it is additional income.

Take it from me, our Creator has already subsidised this country and the government has no business claiming this feat. These politicians and technocrats are fooling everyone and sincerely, we should all apologise to the Niger Deltans for the benign neglect inflictred on them by our brothers and sisters greed which to our collective shame , we have not been able to control. SHAME ON ALL OF US, 

I do not need to mention those in this Hall of Shame,  our brothers and sisters from all over the country, Anybody who happened to have entered ASO  Rock, even on a courtesy visit, not to talk of sleeping there,  our legislators and their military forebears,  civil servants/technocrats,  businessman, traditional ruler,  NAME them  including the professional advisers who made sure that the price of petrol per litre is at par with 
Ragolis (APPRPPRIATE PRICING?).

i DO NOT NEED TO SAY MORE,  You all know who is fooling you and you all know who is stealing your money and you all know who is allowing them to remain in power with "designer judgments",  AND YOU AL KNOW WHY THINGS ARE NOT WORKING

SLEEP ON,  TO OUR DETRIMENT