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Thursday, May 19, 2022

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Nigeria set up new firm to manage investment in petroleum refineries

State-oil firm, the Nigerian National Petroleum Corporation (NNPC) has inaugurated the board of Nigeria Greenfield Refinery Limited (NGRL), a subsidiary of the corporation to oversee the establishment and operation of new refineries.

Group Managing Director of the corporation, Mele Kyari, at the inauguration of the board charged them to explore all options to bring an end to the current challenge of petroleum products importation.

In a statement by the NNPC spokesman, Garba Muhammad, the GMD said members of the board should focus on profitability in order to remain afloat and avoid liquidation.

“As a business, this is a big opportunity for us and this company’s balance sheet must change positively. Going forward, with the Petroleum Industry Act (PIA), I can tell you that if you continue to post negative for three years, you are out. “So, there is really no excuse,” Kyari stated.
He urged the board and management team of the new company to set up a proper structure with the required skills, technology and finance to drive the company’s operations, adding that he is optimistic that the company would be able to achieve its mandate.

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“Our company must grow and we can’t do well except we are able to process our production, whether it is the liquid or gas.

“If we don’t monetise it then we have done nothing. This is really a new chapter and we are committed to making it work,” Kyari was quoted as saying.

He said that all the corporation’s initiatives in the areas of new refineries, condensate refineries and equity acquisition in credible private refineries were geared towards ensuring energy and security for the country.
In his remarks, Alternate Chairman of the board and Group Executive Director, Refinery and Petrochemicals, Mustapha Yakubu, declared that the operations of the company would be guided by the principles of cost effectiveness in line with the new Act, noting that profitability would be the key focus.

Speaking also, Group General Manager, Greenfield Refineries and Project Division (GRPD) and Managing Director of the NGRL, Mr. Bege Talson, disclosed that the division was working with third party investors to establish greenfield, modular and condensate refineries with a combined capacity of 250,000 barrels per stream day.

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