The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu, on Friday disclosed that the four refineries now have 60 per cent refining capacity utilization.
Yakubu who spoke at the capacity building workshop for media practitioners themed: “The role of NNPC in the Nigerian economy,” held in Uyo, Akwa Ibom State, explained that refineries have capacity to refine more crude but there is currently limited supply due to pipeline vandalism.
He said that the process of rehabilitation of the three refineries is underway, adding that there has been a procurement of long lead items, noting that the rehabilitation of Port Harcourt refinery has begun while awaiting the commencement of the entire rehabilitation programme.
He explained that major works have been carried out to ensure continued operations of the refineries, stressing that “The capacity utilization of the refineries as we speak today is 60 per cent of their nameplate. The 60 per cent nameplate capacity is not because the plants cannot take more but because we have this challenge with crude oil supply.”
He noted that the corporation has had recourse to the original builders of the refineries for benefits of their experience and expertise in terms of rehabilitation and equipment provision for the entities to derive maximum value from the money to be spent.
Yakubu also said that oil production has increased from 2.3 million barrels per day (mbpd) to 2.5 mbpd. He said the production feat was attained despite challenges of illegal oil bunkering and theft in the sector.
“In line with Federal Government’s aspiration to transform the industry and especially NNPC into a competitive oil and gas company, on assumption of office, we met and set up strategies to improve oil and gas production. On the average today, we are able to maintain 2.5 million barrels per day production.
“Although we have serious challenges with crude oil theft and bunkering from our major trunk lines, we have been able to maintain 2.5 million barrels per day production.” And these strong lines are mainly in the west, east and the centre of the country.”
He also noted that gas flaring has been reduced to 10 per cent from 30 per cent a few years ago. He noted that the period within which he has served as group managing director, has witnessed improvement in the performance of the company.
He said: “As at today, NPDC is proudly the fifth largest producer of crude oil as well the leading gas supplier in the country. Its production increased from 70,000 barrel per day when we came in and as at today we have about 170,000 barrel per day production and aspire to increase to 250,000 bpd by 2020. It has reserves of 2.1million barrel also.”
He also said that the company has increased its gas contribution to the domestic market to over 570 million standard cubic feet per day.
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