FG Signs TAM Contract with Builders of Refineries

11 Jan 2012
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Minister of Petroleum, Mrs. Diezani Alison-Madueke


By Chineme Okafor

Worried by the frequent demand for functional refineries in the country as a way out of petroleum products’ importation, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has disclosed that Nigeria will this week sign a formal contract for the planned turn-around maintenance (TAM) of all its traditional refineries with their original builders.

She said in a statement in Abuja Tuesday that the contract or agreement for the TAM would be signed by the Ministry of Petroleum Resources, Nigerian National Petroleum Corporation (NNPC) and the original builders of the refineries.

She also said that some other investors from China had also indicated interest to build more refineries in the country.

“In order to ensure that we get our refineries to 90 per cent utilisation and to show Nigerians that we are serious this time around, we actually went back and brought the original contractors that built our refineries in Warri, Port Harcourt and Kaduna.

“Already, they have given us an aggressive timetable and they have assured us that within 24 months all three major refineries will be producing up to 90 per cent capacity utilisation,” she said.

In the statement that was signed by the Group General Manager, Public Affairs Division of NNPC, Dr. Levi Ajuonuma, the minister assured Nigerians that within the next 24 months Nigeria would become a net exporter of petroleum products, adding that with the removal of fuel subsidy, several investors are ready to invest in the nation’s economy.

The four refineries have a combined installed capacity of 445,000 barrels per day (bpd) and a comprehensive network of pipelines and depots are strategically located throughout Nigeria to link them.

“With this policy in place, millions of jobs will be created and the economy will become very viable for investment,” Alison-Madueke stated.

The minister also explained how the removal of fuel subsidy by the Federal Government would help curb the widely reported incidence of corruption in the downstream sector of Nigeria’s oil and gas industry.

She noted that apart from providing the flexibility for re-investment of key funds into the provision of critical social infrastructure, the removal of subsidy on premium motor spirit (PMS) would help erase corruption which has trailed subsidy claims and counter-claims.

According to her, “It is not possible to have petrol at N65 per litre at the pump in Nigeria; in Chad as much as N200, in Ghana at N175 and in Niger at N190 and yet you expect people not to move the product across our borders?

“It is simple economics especially when you consider the nature of our international borders. So in the last 16 months, while we have fought so hard to keep the country wet with petroleum products despite some level of disparity in prices, some people have taken the products to other neighbouring countries where they can sell it for as much as three times the price in Nigeria.”

Alison-Madueke added: “It is a matter of simple economics that when you have this massive differential in price between you and neighbouring countries, nothing can stop the smuggling of the product.”

She noted that it is impracticable for anybody to expect government to stop the incidence of corruption in the downstream sector which is largely due to the subsidy regime and yet expect government to do so without removing the incidence of subsidy which is the biggest incentive for corruption in the sub-sector in the first instance.

“In the bid to sustain the gains of the fuel subsidy removal, a massive transformation and re-organisation is taking place in the Petroleum Products Pricing Regulatory Agency (PPPRA), and Department of Petroleum Resources (DPR) to ensure uniformity of prices of petroleum products in the downstream sector.

“We have put in place a much more robust and aggressive transformation in the regulatory agencies of the downstream sector. PPPRA and DPR are being reformed as we speak. Sweeping changes are beginning to go across them as we speak. We have done this so as to tighten the regulatory indices in the oil and gas sector,” she said.

While suing for understanding from Nigerians, she called on organised labour to reconsider its decision on the strike and return to work.

Alison-Madueke added: “In fact, the policy is a transfer of negativity to positivity in such a way that funds will be put to better use. The subsidy transfer as I choose to call it will lead to a situation where international Trunk A roads will be built for Nigerians.

“Major roads such as Abuja-Abaji, Benin-Ore-Shagamu roads have already been earmarked, major railway lines that will help in the freighting of petroleum products and irrigation projects that will help to supply water to Nigerians have already been pencilled down.”http://www.thisdaylive.com/articles/fg-signs-tam-contract-with-builders-of-refineries/106886/

Eeyah

Blame his media team for under publicity. What were they getting paid for?

Thesame people that have enough years to build refinary in the 36state of the federation, are saying, pmb should not take credit for what has happen to our refinary in just two month in office. God forbid, assuming something went wrong in the last two month, the wailing wailers will not let us to hear word..

God bless GEJ

park well

IbnSultaan:
park well

Are u one of them?

B69U:


Are u one of them?

By his monicker no doubt he is one of them. Islamist brotherhood party.

saTAN is back. Buhari is light!!!

otimize:
saTAN is back. Buhari is light!!!

Deception can only get u so far, before people start to find out that you are a fake. There is no light in lies.

ladyF:
Eeyah

Blame his media team for under publicity. What were they getting paid for?

My sister the thing tire me O. This is how dey lost the election. It is either PDP media team are lazy or novice.


I don't see how Buhari can be getting away with yet another fraud on Nigerians.


That man has not done anything since assuming office. Not even simple declaration of asset as he promised.

Op, why are you swallowing panadol over another's headache?

B69U:


My sister the thing tire me O. This is how dey lost the election. It is either PDP media team are lazy or novice.


I don't see how Buhari can be getting away with yet another fraud on Nigerians.


That man has not done anything since assuming office. Not even simple declaration of asset as he promised.

You mean he really has not had his assets declared?

When something go wrong u will mount d blame on Buhari but when things are changing positively u want to give d credit to Jonathan, u guys should wake-up, our refineries started working on August 2015 and Buhari was/is our president as at dat time so no one can change that fact

coolscott:


You mean he really has not had his assets declared?

He has, but not publicly as we all expected. He will declare it publicly before 2019 elections...that I am sure of.

ladyF:

He has, but not publicly as we all expected . He will declare it publicly before 2019 elections...that I am sure of.

This is a joke right? Nigerians don enter one chance.

B69U:


My sister the thing tire me O. This is how dey lost the election. It is either PDP media team are lazy or novice.


I don't see how Buhari can be getting away with yet another fraud on Nigerians.


That man has not done anything since assuming office. Not even simple declaration of asset as he promised.

You are telling Nigerians PGEJ was incompetent if he paid Abati,Okupe and information minister tax payers' money ,yet no one knew what he was doing.

That said, Governance is about continuity and you can't deny the fact that PGEJ also took credit for some of OBJ's unfinished projects.

The truth remains that a project isn't worth it until completion. It takes hardwork and discipline to bring projects to fruition especially in Nigeria where corruption can extend a project from 2 years to 7years or even abandoned. That PMB has achieved!!!

Does that mean PGEJ was a failure? No!!!

To be fair,he tried his best but unfortunately, it wasn't enough to get him a second term.

Get over wailing my dear and let's join hands to make Nigeria greater.

Nigeria doesn't belong to PGEJ or PMB, it belongs to us.

B69U:
Today one yoruba man was insisting that Buhari had already started to deliver on promises.


Specifically, he insisted that Buhari repaired the refineries. I couldn't help but laugh at the delusion of this person.


How can a man without minister fix refineries that take years to repair in two months.


Giving Buhari credit for GEJ works shows the delusion of APC supporters, their misguided grievances and personal vendetta against GEJ.


Mad Bunch!

I give that to u, I mean your last statement.

Petrol is 110 naira per litre in Port Harcourt, are those refineries really working? What is the daily consumption of petrol in Port Harcourt in litres? Buhari should do well to sell those things off to investors who will make them work 100% and expand them within 2 years to 200%.

Buhari should also remove the subsidy because its not getting to end users. People buy black market here in Port Harcourt for 150 naira per litre and they have not died.

God bless Nigeria.

This is the point: while the refineries were ready to work, they were denied the raw material I.e crude oil. The crude oil was taken out of the country and refined then brought back and sold to us. If you look at it, it would sound better if the refineries weren't working in the first place.
Now when they bring in the refined petrol after ignoring our refineries, they do so tru phantom companies which then collect subsidy payments again. Men!!!!!! Naija was just being raped.

jonathan ended polio,, but buhari takes credit.. Mumu man..dis buhari na scam

the way we reason sha!!! are we expecting buhari to cancel the past administrations projects or what?

yoji:
This is the point: while the refineries were ready to work, they were denied the raw material I.e crude oil. The crude oil was taken out of the country and refined then brought back and sold to us. If you look at it, it would sound better if the refineries weren't working in the first place.
Now when they bring in the refined petrol after ignoring our refineries, they do so tru phantom companies which then collect subsidy payments again. Men!!!!!! Naija was just being raped.

Bubu has also stated it that they will continue paying the same fuel subsidy which he claimed to be scam later before election. Now who is fooling who?

Buhari Administration may not have started the repairs of the Refiniries, buy there is no doubt that change of leadership is strongly connected to the reason why the refiniries have started functioning

If GEJ had been returned as the President, Diezani will still be Petroleum Minister, and NNPC will still be the same old corrupt NNPC, and the Nigerian PFP hawks will still be intact to continue to rape the nation; THEREFORE YOU CAN BE 100% SURE THAT IF GEJ WAS STILL IN POWER, THE REFINIRIES WILL NOT PRODUCE ANY PETROL. O TI SURE JU

They will not produce because they were deliberately denied crude oil.

This @op's post has been destroyed already by another on front page.

GEJ and his cronies only used refinery repair tales to rob Nigeria.

yemaldo:
When something go wrong u will mount d blame on Buhari but when things are changing positively u want to give d credit to Jonathan, u guys should wake-up, our refineries started working on August 2015 and Buhari was/is our president as at dat time so no one can change that fact

But was he the one that fixed the refinery? Y cnt we tell ourselves d simple truth. I keep saying it that d fundamental ignorant of a Black Man is deeply rooted in the truth. The problem of Nigeria is Nigerians

It is not that start a race that did well but he that finish it

tunshe:


You are telling Nigerians PGEJ was incompetent if he paid Abati,Okupe and information minister tax payers' money ,yet no one knew what he was doing.

That said, Governance is about continuity and you can't deny the fact that PGEJ also took credit for some of OBJ's unfinished projects.

The truth remains that a project isn't worth it until completion. It takes hardwork and discipline to bring projects to fruition especially in Nigeria where corruption can extend a project from 2 years to 7years or even abandoned. That PMB has achieved!!!

Does that mean PGEJ was a failure? No!!!

To be fair,he tried his best but unfortunately, it wasn't enough to get him a second term.

Get over wailing my dear and let's join hands to make Nigeria greater.

Nigeria doesn't belong to PGEJ or PMB, it belongs to us.

Can we learn 2 tell the simple truth, was Buhari d one that fixed the refinery?

If jonathan was the one that fix the refinery, why didnt it work during his tenure?

What does "fixed" the refinery mean? The refineries have capacity for 450 thousand barrels per day, are they anywhere near those figures now that they have been "fixed"? If fixed the refinery means that refineries have increased production, how is that different from all the increases in production we have been told about in the past years?

TruthisGOD:
Can we learn 2 tell the simple truth, was Buhari d one that fixed the refinery?

Let's drop who did what and stop comparing 2 leaders who have both strengths and weaknesses.

Our focus is results,that's what will benefit Nigerians.