…Seeks Investment Partners in Power Projects
The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Kacalla Baru has expressed optimism in achieving the country’s target of ending the importation of Premium Motor Spirit (PMS) by 2019.
Dr. Baru made this known while fielding questions from journalists on the sidelines of the ongoing Offshore Technology Conference (OTC) in Houston, United States, yesterday.
The GMD, who was represented by the Chief Operating Officer, Gas & Power, Engr. Saidu Mohammed told journalists that as at today, all the nation’s three refineries were producing petroleum products.
“We load out at least 5 to 6 million litres of PMS daily and about that same quantity of AGO daily from the three refineries. That is part of what is making the PMS market in Nigeria stable today. We believe that the set target of exiting PMS importation in 2019 is achievable,” he stated.
He maintained that because rehabilitation of the refineries has been hampered by lack of regular Turn Around Maintenance (TAM) over the years, it would take more years to get the refineries fully back to their nameplate capacities.
“Don’t forget also that for us to exit PMS importation in 2019, we have to also bring in new refineries that will co-locate with existing ones together with the new ones that will be built. Then, we see ourselves as a net exporter of products. On this, I can tell you that we are on course,” he added.
He observed that following NNPC’s foray into the energy sector through electricity generation and other renewables, Nigeria’s perennial power sector woes may soon be over.
“Essentially NNPC has been there. Many people don’t know that the NNPC has been part of the power sector. We supply steadily about 1,000mw from Afam and Okpai, two of Nigeria’s most reliable power plants serving as one of the cheapest sources of power today in the country,” he noted.
According to the GMD, the NNPC engaged its Joint venture partners, Chevron and Total, towards building similar power plants at Obite and Agura.
He said the Corporation was also looking at bringing in new investors. “We have advertised and are currently evaluating potential partners in this regard,” he said.
The GMD further observed that beginning from the power that the NNPC has been supplying through Afam and Okpai, going to its refineries where there is excess power to the completion of the power plants that it has started and most especially to the three mega power plants in Abuja-Kaduna-Kaduna (with combined capacity of 3000mw), the Corporation was fulfilling parts of its commercial obligations to Nigeria’s energy sector.
He said the NNPC was attending the OTC 2017 in order to attract potential investors and most significantly, to showcase its efforts of transforming into full-fledged energy company.
“We are here to showcase to people who have the capacity, competence and technology to invest in Nigeria and help us increase our reserves and enhance the capacity of especially our Exploration & Production subsidiary, the Nigerian Petroleum Development Company (NPDC).
According to him, although NPDC’s production has been hampered by security challenges in recent times, Management has made strategic interventions to ramp up the company’s production within the next few years.
“Essentially we want to raise NPDC’s entire production capacity by about 700kpd and by other partners to about 300kpd so that ultimately, we’ll raise Nigeria’s production to about 3mbpd,” he noted.
He noted that in line with its transformation agenda, the Corporation was aligning its 12 Business Focus Areas with Federal Government’s 7-Big Wins as championed by the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu.