Buhari seeks closer ties between NNPC and local oil producers

According to him, the group is also responsible for over 200,000 barrels of oil production and over 900 million cubic feet of gas production per day in the country.

Nigeria produces some two million barrels of crude a day but despite its huge reserves, the country imports much of its fuel due to a lack of refining capability, a situation blamed on corruption and mismanagement.

Members of the Independent Petroleum Producers Group on Wednesday said they would achieve 1.2 million barrels per day domestic refining capacity of petroleum products by 2020.

Disturbed by the plethora of problems enumerated by the IPPA, President Buhari assured indigenous companies operating in Nigeria’s oil and gas sector of the full support and protection of his administration.

“We think that by 2020, domestic refining capacity should not be less than one million barrel of oil per day in domestic refining”. Some construction is already ongoing by indigenous companies and between some others who are coming in with smaller sized refineries and in partnership with NNPC. The statement which was signed by NNPC’s Group General Manager, Public Affairs, Ohi Alegbe quoted the US Ambassador to Nigeria, James Entwistle to have said that the United States will be willing to provide all necessary support to the new NNPC management to realise the objectives for which the government called them up for.

He further said that the group had, in the past five years, invested $9 billion in the oil and gas sector and also made over $1 billion each year in work-programme investment in the sector.

He explained that the involvement of indigenous companies in the operation of refineries does not mean that they have to take over from the multinational, stressing that they would rather complement each other. Deep offshore, LNG, and whereas the onshore terrain and delivery of gas to domestic market, these have become our frontiers. “We realised we are very critical partners that he needs to know about and to engage with very early in the administration”.

“We have the manpower for a more effective participation in our oil industry”.

Of particular note, NNPC’s inability to meet cash call obligation to JV partners appears to have been exacerbated by the significant fall in oil revenue.

“So it was very useful discussion”.