PUBLIC outburst against the controversial sale of the Kaduna and Port Harcourt refineries by the administration of President Olusegun Obasanjo may have yielded results.


The new owners of the two plants, Bluestar Oil Services Consortium, owned by businessmen, Alhaji Aliko Dangote and Mr. Femi Otedola, has reportedly bowed out of the deal.

Dangote Group of Companies and Zenon Petroleum, owned by Otedola formed the consortium to manage the plants. They staked about N92.3 billion ($721 million) to get the nod of the Bureau of Public Enterprises (BPE) to run the refineries.

Soon after the deal was sealed, eminent Nigerians and organised Labour faulted the exercise, alleging that it was not transparent.

In fact, the sale of Kaduna Refinery was greeted with a wild protest in the state while employees of the two plants resorted to prayers for the arrangement

It was also learnt that the consortium was pulling out of the refineries due to the outcome of its due diligence on the plants. The firm reportedly discovered that the amount it offered for the refineries was far above their real value.

But the opponents of the transaction said that besides the fact that the exercise was not transparent, the plants were under-valued.

Bluestar acquired 51 per cent in Port Harcourt Refinery for N71.8 billion ($561 million) and Kaduna Refining and Petrochemicals at N20.5 billion ($160 million).

Some say under valued, others say over valued But the summary it that they are begining to bow out of the 'deal'. They may claim they overpaid to try and save their FaCeS. They said they are coming back after 12 months if NNPC doesn't redeem their pledge of making the refineries functional soon.

I wonder the impact of this on the proposed Dangote Floor PO.

Lets see the  magic NNPC will perform with these scraps called refineries @ the present pump price of PMS.
Honestly,this is a one two step backward for the nation at this time.
We are watching.

Lets see the  magic NNPC will perform with these scraps called refineries @ the present pump price of PMS.
Honestly,this is a one two step backward for the nation at this time.
We are watching.

iyken, u have said it all. but the other question is, is NNPC trying to save the refinary or their jobs.

Well since we all know that NNPC can't manage these Refineries, look at their record to date.

All said and done at least Dangote & Co will get them working, so I don't understand this attitude of "why should the man make money"