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| Kachikwu, NNPC GMD |
Amidst the controversy surrounding the crude swap cancellation,
the Group Managing Director of Nigerian National Petroleum Company
(NNPC), Dr. Emmanuel Kachikwu explains that the action was implemented
to ensure transparency and recover millions of dollars looted through the swap deals .
” We have saved 200 million dollars by virtue of doing that”. he revealled
Kachikwu who was speaking during an official tourof Kaduna Refinery and Petrochemical Company, KRPC said it obvious
that the old refineries are wearing out and can no longer meet up the
demands and supply of products across the country.
He added that it is only when new refineries are built
that the problems of fuel scarcity and other
problems associated with the inability of NNPC and its subsidiary to
deliver will be resolved.
According to NNPC boss said it is considering the option of building
new refineries to support the old ones as soon as possible.
Fielding questions from journalists on assessment of Kaduna Refinery
after the tour, Kachikwu said there is need for a new model if it
must work optimally.
He also said because the refinery is very key to survival of the
economy of Kaduna State and other states in the north, the management
is working hard to make KRPC work to full capacity .
While noting that three out of the six units of Kaduna refinery are
working , he reiterated the commitment of the management to ensure
that within the stipulated 90 days time frame , some elements of
Kaduna plant would work as planed.
On the issue of pipeline security against vandalism after the tour of
the plant in Kaduna , Kachikwu said the new management has already
measure taken by the current management to deploy strategic military
approach to safeguard the pipelines and block leakages arising from
pipelines breaks and product loss .
“We have been sending a body language message that the business of
messing around with our pipelines are over”. He stated.
Meanwhile, he gave assurance that NNPC will soon start pumping crude
oil from Warri to Kaduna once the problems on pipelines are
rectified .
“My impression is that there are alot of works to be done,
and like I saw in Port Harcourt and Warri, there is
alot of resilient and determination by engineers and people who run
these plants, Obviously, we need new modules because with this
modules it won't get us to where we need to be very rapidly. Three
out of the six units of the plants were down, some of them for a very
long gestation periods, we need to sit down and see what modules,
how do you turn around the new refinery. How do you work on
emergency basis components of the ones that are there?.
“Kaduna has a very unique place in my heart like I said because I
grew up in Kano and I used to come here
often. It is so key for the survival of the economy of Kaduna state
and the rest of the North that we really focused on getting these
things work and getting it to expand. Without them we are not going
to get out of problems of fuel supply, power supply and all that. So
we are going to have a gone whole commercial structure, gone whole
engineering structure a lot needs to be done
different from models we are pursuing right now. For me, it is truth time.
“ What really is the truth about refineries? A lot need to be
required of different model of development. So we are going to be
working to clarify those solutions. Still committed as the 90 days
time frame some element of this plant would work the
way we want it.
“But never will we got it to where I will loved it to be. So
simultaneous reserved will enhance process to see the rest of the
units getting to get to sort of level of maintenance and repair.
On security of the pipelines he said " we are doing quite a lot on
security as you are aware the working with the security
forces to enhance the Warri to Kaduna point has been tested now for
integrity and I think by my understanding for the last testing is
that is fairly ok now to take control if the FCC units are working.
“So on a short term basis we have been able to deal with that. Medium
term basis we are going to work with the security agencies to ensure
that the sort of destruction you find on pipelines not just from Warri to Kaduna but the whole country become a thing of the past.“We working on a very enhanced, very robust, very accelerated program
to deal with that working with the security forces. We are
trying everything that we can and we are sending a body language that
the business of messing around with the pipelines is over and I
think the message is going round as loud as ever”.
“In term of how to get the refinery work, like I said, new business
module, new commercial module, new approach to how we have to get to
where we should be but what is obtainable is that most of our
refineries are close to 30-40 years old we need to begin to look at
building new refineries in the same land space where they can share
facilities, so that you will have something to lean on when these
old ones are beginning to kick out, It is as simple as dealing
with an old dilapidated car, if you don't maintain it, it breaks
down.
“Deal of sufficiency and issue of efficiency, it has nothing to do
with of crude swap cancellation is that straight away you are
servings over 200 million plus dollars by virtue of doing that. You
have transparency in the deal per month and you have transparency
that embedded in those processes, the new processes.
“ We have less discretion by whoever is making decision in terms of
allocation. We can leave trading and focus on what is more
important in the oil industry. I can assure you that there are
structures put in place. You will get product the way you need it,
we are working on that. Even though we have canceled swap you are
going to have replacement swap contract that are lined along very
efficient and very transparent processes. That will save us a lot of
money.
The Refineries are not working to global best practice right now they
are all down so what when we are talking about global practices, we
are dealing with major situation where pipelines have perpetually
tools for destructions. That stuff of killing NNPC was historical
before I came in, but we are working hard to justify why it shouldn’t
be killed, but I am a business man, if we get to a point where we are
not doing well enough, and it needs to be killed, we look at what
alternatives are. Today, whether we like,
“It or not, lets be realistic here, irrespective of the fact that
negative gets alot of more publicity than the positives, this
organization has kept this country going for the last 30-40 years, it
has built and sustained the refineries, it has delivered fuel the
moment our refineries don’t work, it has delivered retails in a very
difficult terrain. So what I am trying to say is that you don’t throw
away the baby with the bath water, there is bath water that need to
be thrown away, and we are doing that, but there is a healthy baby
sitting there that we are going to nurture it”.
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