The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has explained why several licenses granted to private investors by government for the establishment of refineries could not come to fruition.
Kyari spoke at a virtual conference recently and noted that the licensees could not build the facilities because of issues around the market structure.
He said: “But I’m happy that we have transited into a deregulated market, which means that companies can now predict what will be the price of petroleum and they can now have basis for investment”
He said the country’s three million barrels per day oil production target was attainable, as Nigeria attained about 2.45 million barrels per day sometime in April this year.
Kyari also disclosed that the country’s refineries are currently down, adding that Nigeria was importing every refined petroleum product being consumed therein
He said the corporation was working on fixing the refineries, as well as on establishing condensate refineries in certain areas.
He spoke on the non-passage of the Petroleum Industry Bill and expressed optimism that the bill would become law later this year.
He added: “First of all, let me defer the question about the PIB to the Minister of State for Petroleum Resources, but I’m aware that as we draw to the close of this year, we will be in a position to get through this legislation around the PIB.”
Kyari advocated the need for the enhancement of local skills in the sector, stressing that expatriates were so many in the industry and this often increased running cost.
He said there was a need to create adequate local skills in the Nigerian oil and gas sector.