Kachikwu : “Nigeria needs $700 million to upgrade refineries”

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The Minister of State for Petroleum, Ibe Kachikwu, said on Saturday 23rd April 2016 that the Federal Government needed 700 million dollars to upgrade its refineries to produce at full capacities. He spoke when he inaugurated the Bonny–Eleme Refinery crude pipeline to formally bring the refinery on stream.
Inaugurating the crude pipeline on Saturday at the Pig Station of the Port Harcourt Refining Company (PHRC), Alesa-Eleme, Kachikwu noted that there was need to upgrade the refineries to operate at 90 per cent capacity.
He stated that the daily consumption of premium motor spirit (pms) currently stands at about 45 million litres and said the refineries now operating at 60 per cent capacity could only produce 12 million, adding that there was need to upgrade the refineries to produce at 90 per cent minimum to produce about 20 million litres.
He said the corporation was already sourcing for foreign investors to raise the necessary funds.
According to him, “we are not inviting foreign partners to take over the refineries; the total investment for that is up to $700 million and we don’t have that. Let us be honest about it”.
”So, the best thing to do is to find a very creative way to bring in investors, who will come in, work with our team here;
‘’Investors, who have the skills to reactivate and upgrade facilities in this place and help us provide technical support and we will pay through the flow-out of the refined products over time,” he said.
Mr. Kachikwu 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”.

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