We need $700m to upgrade refineries – Kachikwu

                                                                 Dr. Ibe Kachikwu

The Federal Government has said that it would need the sum of $700 million to upgrade the nation’s refineries to be able to perform up to 90 per cent capacity.

The Minister of State for Petroleum, Dr. Ibe Kachikwu, disclosed this on Saturday when he visited Eleme Local Government Area of River State for the re-commissioning of the crude line from Bonny to the Port Harcourt refinery.

 Kachikwu explained that though Nigeria was currently not having such amount to upgrade the facilities, the country was embracing a creative way of bringing in investors.

 “We are not inviting foreign partners to take over the refineries; we do not have the funds. Even now that they (refineries) are working, they are probably working at about 60 per cent capacity. We need to upgrade these refineries and let them develop to the point where they can perform up to 90 per cent capacity. Total investment for that is up to $700 million and we don’t have that (money). 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, who have the skills, reactivate and upgrade facilities in this place and help us provide technical support and they would be paid through the flow-out of the refined products over time. There is no confusion about what they are coming to do; they are not coming 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. So, the areas of intervention will be funding and technical support.”

Kachikwu apologised to Nigerians for the challenge being faced due to scarcity of fuel.

Explaining that the Federal Government was putting measures in place to tackle the problem of fuel scarcity, Kachikwu stated that the government was not going to give up on the issue.