The Nigerian National Petroleum Corporation (NNPC) has inaugurated eight committees charged with returning the refineries to their nameplate capacities by the year 2019.
The Group Managing Director of the NNPC, Dr. Maikanti Baru, while inaugurating the committees on Tuesday, charged them to deploy “out of the box solutions” to ensure that the refineries return to their good old days of top class performance.
“I am convinced that the teams we have selected here today will give the necessary direction towards returning the refineries back to their optimal levels of performance,” the GMD told members of the Committees.
According to a statement by NNPC spokesman Ndu Ughamadu, the GMD explained that in executing the assignment, the Committees were expected to deliver well and within schedule.
Although the target for the refineries rehab was to return them to 90%capacity utilization before the end of 2019, Baru stressed that with more commitment from the committees, 100% capacity utilization was achievable.
“We want to show everyone that we can fully run the refineries. You must all work together to operate them at 100% capacity as this was the only way to ensure profitability,” Dr. Baru stated.
During his introductory speech, the Chief Operating Officer (COO), Refineries and Petrochemicals, Engr. Anibor Kragha, said that for the first time in 20 years there was both the political will and the economic climate to ensure effective retrofitting of the refineries.
He further said that over 28 Expressions of Interest had been received so far for the financing of the rehabilitation project and that the goal was to get more by the end of the year.
Assuring everyone that the nation would not suffer financially from the project, the COO explained that the approved financial model would guarantee payment to partners only from incremental profits.
“Payment is therefore hinged on performance, ensuring a win-win situation for Nigeria”, Engr Kragha said.
Speaking on behalf of the committees, the Chief Financial Officer of the Corporation, Mr. Isiaka Abdulrazaq, reminded members of the newly inaugurated Committees that the rehabilitation of the refineries was one of the targets of the President Buhari administration.
Mr. Abdulrazaq expressed his confidence in every member of the committees to deliver on their various tasks.
The Committees inaugurated for the rehabilitation of the refineries would be be headed by a Steering Committee, chaired by the GMD.
Other Committees are: Rehabilitation; Stakeholder Management; Financing; Legal; Procurement; Pipeline and Crude Oil Supply and Security as well as Staffing and Succession Planning.