The Chief Executive Officer of the Nigerian National Petroleum Company Limited, NNPCL, Mele Kyari, on Tuesday while addressing a news conference at the State House, Abuja, said that the country will no longer import petroleum products from June 2023.
He also stated that the NNPC has shut some pipelines down for inability to meet production costs, due to losses.
The NNPCL boss further said the phenomenon of oil theft is now very rampant with mosques, churches serving as tapping points by oil thieves.
Commenting on the need to end petroleum products’ importation by middle of 2023, Kyari stressed that with a combination of production from the national refineries, which are currently being refurbished and will be ready by next year, and the products from the Dangote Refinery, in which Nigeria has a 20% stake, Nigeria should meet domestic needs, without any need for importation from mid-2023.
His words: “NNPC owns 20% equity in the Dangote refinery and not only that, and we’re very proud of this. We’re not only owning 20% equity, we have the first right of refusal to supply crude oil to that plant.
“But we saw this energy transition challenge coming we knew at that time will come when you will look for people who will buy your crude oil you will not find and that means that we have locked down ability to sell crude oil for 330,000 barrels minimum by right for the next 20 years.
“Also, by right also we have access to 20% of the production from that plant. That means that whatever it does, you know we have a right to take 20% of that production as part of our equity and this refinery will come on stream by the middle of next year.
“Projection is the first quarter, but we think that it can come up latest by the middle of next year. If it does, this refinery alone, because it has a 650,000 per barrel capacity and a different technology, which means that it can crack the crude in a manner that you can have more gasoline than a typical refinery.
“That means that the refinery has the ability to produce up to 50 million litres of PMS. So, the combination of that and our own ability to bring back our refinery will completely eliminate any potential petroleum product imports into this country next year. You will not see any importation into this country next year. This is very practical. This is possible.
“As a matter of fact, when we’re done with our refineries and the Dangote Refinery, very many small initiatives that we are doing; small, modular, condenser refineries that we’re building, if that happens, and we are very optimistic it will happen.
“You will see that this country will now be a net exporter, we hope to export petroleum products, not just to the west African sub region, but to the rest of the world. This will happen, the flow of supply will change – by the middle of next year it will change. So, you will have no need for importation of petroleum products into this country by the middle of next year”.
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