Why Port Harcourt refinery is yet to start production—Soneye, NNPCL Chief Comm Officer

TRIBUNE ONLINE NG

Mr Femi Soneye is the Chief Corporate Communications Officer (CCCO) of the Nigerian National Petroleum Corporation Limited (NNPCL). In this interview, he speaks on the challenges confronting the rehabilitation of the country’s refineries, and distribution of petroleum products nationwide, among others.

IN view of the ongoing rehabilitation of refineries, tell us about the efforts so far made by NNPC and other oil firms to protect pipelines and tackle oil theft in Nigeria?

The security and maintenance of our product and crude transfer pipelines to terminals and refineries will fall under the purview of Build, Operate, and Transfer (BOT) concessionaires. This strategic arrangement aims to mitigate third-party incursions and sabotage, ensuring the integrity of the pipelines. We have also enhanced the security architecture by working with all branches of the military, from the Navy to the Army, the Air Force, the police, the Department of State Service (DSS), and the Nigeria Security and Civil Defence Corps (NSCDC).

The NNPCL is also actively combating oil theft in Nigeria through collaborative efforts with private security firms and oil-producing communities. This strategic partnership aims to enhance surveillance and security measures to curb illicit activities. By engaging local communities and leveraging private security expertise, NNPC reinforces its commitment to safeguarding national resources and preventing unauthorised activities in the oil sector.

Are there ongoing efforts to rehabilitate pipelines and other assets to enhance the distribution of petroleum products nationwide?

The Nigerian Pipelines & Storage Company (NPSC), a subsidiary of NNPCL, is actively engaged in the rehabilitation of pipelines and storage terminals across the country. In 2021, the Group Chief Executive Officer of NNPCL emphasised the adoption of the Build, Operate, and Transfer (BOT) model for this initiative.

The competent project companies would be selected through an open competitive bidding process. The chosen BOT contractor will be responsible for financing the project, operating it, and, after recovering the investment and achieving the targeted profit, transferring the asset back to NNPC/NPSC. Revenue for the BOT contractor’s recovery and returns will be generated through tariffs during the asset’s operation.

NPSC is currently in the final stages of concluding contractual arrangements with the BOT concessionaires. The implementation and execution of these contracts are anticipated to significantly improve the reliable distribution of petroleum products nationwide.

With vandalism and oil theft, do you think Nigeria can still meet its oil generation quota and distribution target?

What I can tell you is that the NNPCL has been involved in various initiatives to increase oil and gas production in Nigeria. These efforts typically include collaborations with international oil companies, investment in exploration and drilling activities, and implementing technology upgrades to enhance efficiency. We are also investing in new assets and enhancing idle ones.