Federal Government need $700 million to upgrade its refineries to produce at maximum capacities.
Minister of State for Petroleum, Ibe Kachikwu, on Saturday, made this disclosure while speaking with newsmen during the re-inauguration of the Port Harcourt/Bonny Crude Supply Line at the Port Harcourt Refining Company (PHRC), Eleme.
Kachikwu said because Nigeria currently does not have that type of money, the Federal Government has signed for investors to come in for the upgrading exercise of the refineries.
The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) advised that there should be no confusion about what the mission of the investors will be, since they would not come to run the refinery.
The Minister emphasised that there should be no confusion about what the investors would be coming to do, since they would not come to run the refinery.
”They are coming to provide funds to take our performance on these refineries to 90 percent and to provide us with technical skills.
So, the areas of intervention will be funding and technical support,”
Kachikwu announced that the pipelines that were down for six to seven years but had been repaired and were working and supplying crude to the refineries.
”For the first time, the refineries will get their crude, pay for it; they will sell their products and they will earn the income from that product.
”And then, they can develop and continue to maintain the refineries even after this intervention is over.
”Port Harcourt is back in production, Warri is back in production; Kaduna today is receiving and will soon be back in production. It is something of joy,”