The new Group Managing Director of Nigeria National Petroleum Corporation (NNPC), Mallam Mele Kyari, has promised to fix the country’s refining challenges.
Speaking at the opening of the 2019 annual conference and exhibition organised by the Society of Petroleum Engineers on Monday in Lagos, Kyari said: “It is a shame that Nigeria remains a net importer of petroleum products in spite of being the sixth largest oil producer in the world.”
The theme of the conference is “Artificial Intelligence, Big Data and Mobile Technology: Changing the Future of the Energy Industry”.
According to NNPC boss, NNPC is challenged by the reality of its environment as the refineries are not operating optimally.
“Today, we are net importer of petroleum products, which is a very big shame for us as a nation. And as for professionals, we can give any excuses, but today it’s a shame that this country is net importer of petroleum, but we are going to change that.
“NNPC is going to get its house together to fix the refineries. We want to make the refineries functional with at least 90 percent capacity. Also, we want to support those who have the initiatives on refinery, and providing fiscal regime,’’ he said.
Kyari vowed to reverse the trend of petroleum products importation in the country by rehabilitating the existing refineries and encouraging private sector investment in the sub-sector.
“We must end the trend of fuel importation as an oil producing country. We will deliver on the rehabilitation of the four refineries within the life of this administration and support the private sector to build refineries.
“We will support the Dangote Refinery to come on stream on schedule. We will transform Nigeria into a net exporter of petroleum products,’’ he said.
He said the age-old Federal Government’s target of raising crude oil production and reserves to three million barrels per day and 40 billion barrels, respectively was possible.
Kyari also said he would galvanise the corporation to achieve the target by 2023.
“As you all know that since 1999 till date, effort to get the Petroleum Industry Bill (PIB) passed into law has not worked and this is a big challenge and disappointment for all of us,’’ Kyari said.
In his remarks, Mr. Ahmad Shakur, the Acting Director, Department of Petroleum Resources, (DPR), said the agency had launched automation initiatives.
Shakur listed this to include Crude Oil and LNG Tracking (COLT), Automatic Downstream System (ADS), Accelerated Lease Renewal Program (ALRP) and others.
With these enhanced automation, Shakur said “the DPR can be able to track production, track the movement of that production and the series of I.T based platforms and interventions can conveniently take the agency into the next foray of how oil companies and oil operations in the country should run.’’
He said there were few interventions like the National Production Monitoring System (NPMS), whose focus included using online to gather data.
The director said the DPR was now able to track online/real time data of what the country’s productions.
“The fields are largely tracked online and now the agency can actually feed the nation on what is actual production and from which fields and what is the volume and also identify if there are leakages.
“The COLT, which is basically tracking of crude oil and LNG and not just to produce, but to know where it is going to,” he said.
MM/GIK/APA