The Petroleum Industry Bill (PIB) has been in the making for over 20 years. a first attempt at passing a new bill took place in 2008 when former president Umar Yar’Adua sent it to the national assembly. ever since there has been tussles here and there in the oil and gas industry concerning the passage of the bill.
With the Rehabilitatation of a 32 year old Port-harcourt refinery and the new privately own refinery what is the fate of the oil and gas industry in Nigeria? Reactions have continued to trail the federal executive council recently approved $1.5billion (about n575b) for rehabilitation of the 32-year-old refinery.
some stakeholders have urged federal government to suspend its plan to spend about $1.5 billion on rehabilitation of the 210,000 barrels per day (bpd) port Harcourt refinery.
Minister of state for petroleum resources, Timipre Sylva, had explained, that contract for the rehabilitation was awarded to an Italian firm, and would be executed in three phases.
Experts preferred that the refinery is sold by bureau of public enterprises (bpe) to core-investors with proven capacity to repair it with their own funds.
the $26.5billion spent altogether in trying to fix three refineries over the years have not yielded any results as they lament the length of deplorable state the refineries in Warri, Kaduna and Portharcourt.
The Port Harcourt refining company limited came into business to process hydrocarbon into petroleum products for the benefit of all stakeholders. the company’s vision is to be an innovative international hydrocarbon processing company of choice.
The old refinery commissioned in 1965 with current nameplate capacity of 60,000 barrels per stream day (bpsd) and the other refinery commissioned in 1989 with an installed capacity of 150,000 bpsd bringing a combined crude processing capacity of the Port Harcourt refinery to 210,000 bpsd, but today that vision has fallen so short.
Dangote refinery significance for Nigeria
with the new kid on the block, estimated to hold 37 billion barrels of proven oil reserves, the Dangote refinery will increase Nigeria’s refining capacity two-fold and help meet the increasing domestic fuel demand, while generating foreign exchange through exports.
Dangote refinery is a 650,000 barrels per day (bpd) integrated refinery and petrochemical project under construction in the Lekki free zone near Lagos, South West Nigeria. it is expected to be the Africa’s biggest oil refinery and the world’s biggest single-train facility, upon completion in 2020. as federal government’s officials toute the project as they anticipate to learn what is needed to be captured in the petroleum industry bill.
A document expected to provide a framework to boost oil and gas output while enhancing the sector attractiveness for international investors, thus increasing foreign direct investment, has been on the pipeline for decades as the latest oil and gas code, passed in 1969, still governs the petroleum sector in Nigeria.
Whatever, the case may be, the new oil refinery seen as a game changer, owned by a single individual is developing a project with an estimated investment of $12bn.
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