Published: October 13, 2011

The federal Government is said to be
negotiating an investment of N428.8 billion
($2.68bn) in three refineries deal in Indonesia,
South East Asia. The deal if sealed will see the
federal government part-owning three refineries in
the Far East. The Indonesia Post quoted a top
government official as giving the hint of the planned
investment by the federal government.
This development is coming at a time when
government is planning to remove subsidy from
petrol and, more so, at a time it is talking about
economic transformation and diversification.
According to the report, the Indonesia Industry
ministry’s director general for manufacturing,
Pangah Susanto was quoted by Kompas.com, an
online publication in Indonesia as saying that both
countries have agreed to build the refineries in
Indonesia. Details of the agreement were not
released. Nigeria which at the moment produces 2.6
million barrels of crude per day was said to be
looking for a partner to refine its crude oil Panggah
was quoted as saying. He said that previously,
Nigeria wanted the refineries to be built in Nigeria.
However, as Indonesia is currently improving its
down stream industry, it wanted the refineries built
in Indonesia instead of Nigeria. The three refineries
are being projected to produce 300 barrel per day
and will be used to process crude oil from Nigeria.
Indonesia oil firm PT Pertamina will buy the crude
oil from Nigeria and process it in Indonesia.
Nigeria currently imports most of its petrol as all the
local refineries are working far below capacity.
Nigeria has an installed crude refining capacity of
445,000 barrels per day but the refining output is
insignificant when compared to the national 32
million litres per day consumption. According to the
pricing template of the Petroleum Product Pricing
Regulatory Agency as at August 15, 2011, the
landing cost of a litre of petrol is N129.21; the
margin for transporters and marketers is N15.49;
the expected pump price is N144.70; while the
official pump price is N65. This means that the FG
pays N79.70 as subsidy on each litre of petrol
consumed in the country. With about 32 million litres
of petrol consumed daily across the country, it also
means the government is paying about N2.6bn as
subsidy every day, which translates into N18.2bn
per week and N72.8bn per month. Importation of
petroleum products has been the source of subsidy
that has generated controversy over its plan
removal by the federal government.
Nigerian exports its crude oil and imports finished
products. Its crude oil differentials were steady on
Tuesday as prices found a temporary floor due to
supply glitches in key grades in a market
characterised by fading demand. Shell, one of the
majors said its force majeure on Nigerian Forcados
crude oil exports would be lifted by late October or
November if all repair works went to plan. Traders
said they expected the force majeure on Forcados
to affect no more than 1-2 cargoes, or around
30,000-60,000 bpd. Shell has lifted the force
majeure on its Bonny stream, declared on August
23.
“On the back of waning demand from the U.S.,
which saw total crude imports drop by almost
300,000 b/d month-on-month in September, less
supply of Forcados may provide a floor, even
though a steep drop in Bonny Light shippings was
unable to prevent differentials from sliding,” said
JBC Energy’s David Wech. Traders said that around
15 tankers for November loading were still reported
to be available.
They are not really moving. Differentials are
suffering a lot because of the weak margins and
increasing freight. Also, buyers like Conoco are
taking less,” said a West African oil trader.


http://www.vanguardngr.com/2011/10/nigeria-to-invest-n428-8bn-2-68bn-in-3-refineries-in-indonesia/

why not nigeria

I believe this is a joke!!!!

If not, then this is the pinnacle of cluelessness

More reasons more Niggas are swapping party...... What the hell is wrong with Jonathan, don't let me change my mind, because if I do? 1million less vote.... Instead of voting for Buhari I kokoma de my house the sleep

Vote GEJ if you want to retain this vicious cycle of deception and cluelessness.

We want to build in another country what we can't build in our country. This type of nonsense is what Mr. Clueless is known for.
You can't give what you don't have.

This sound more like the story of Obama daughter being pregnant.

Caseless:
We want to build in another country what we can't build in our country. This type of nonsense is what Mr. Clueless is known for.
You can't give what you don't have.

GEJ AND CLUELESSNESS TWO SIDE OF THESAME COIN.