Wednesday, 3 May 2017

Nigeria to revoke licenses for private refineries

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The Federal Government on Wednesday said it would revoke licenses given to individuals and corporate organisations for private refineries but were yet to be utilised.
Minister of State for Petroleum Resources, Dr Ibe Kachikwu, said this at a World Press Conference on the sidelines of ongoing annual Offshore Technology Conference in Houston, U.S.

The Federal Government under former President Olusegun Obasanjo had granted licenses to some private concerns to build refineries but only Alhaji Aliko Dangote, put it to use.
His refinery, under construction is nearing completion, and recently, he assured that the 1.3 million metric tonnes per annum petrochemical plant in Lagos would commence operation in the last quarter of 2018.
Kachikwu said that he had had discussions with the Department of Petroleum Resources (DPR), whose statutory functions included processing application for various licenses, permits and approvals across the oil and gas value chain, on the matter.

“I have spoken with DPR on the matter. Those who have not been able to move forward will have their licenses withdrawn,” he said.

He said that the aim of giving licenses was to reduce the huge capital flight to fuel importation, meet local demand and look at possible exports.

The minister explained that the review of the system was necessary as the nation’s existing refineries, which had a combined capacity of 446,000 barrels per day (bpd), were grossly inadequate to meet national daily demand.


Source: Guardian.ng

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