BUSI­NESS Inse­cu­rity, pol­icy som­er­sault de­prive Nige­ria of $300bn oil in­vest­ment – Kachikwu

Daily Trust - - NEWS - From Kay­ode Ekun­dayo, Lagos

Min­is­ter of state for Petroleum Re­courses, Ibe Kachikwu has said that in­vest­ments worth over $300 bil­lion have dis­ap­peared in the na­tion’s oil sec­tor in the last five years due to low oil prices and inse­cu­rity as well as in­con­sis­tent poli­cies.

Speak­ing at this year’s in­ter­na­tional con­fer­ence of the So­ci­ety of Petroleum En­gi­neers, Kachikwu said in­vest­ment is fast dis­ap­pear­ing in the sec­tor while other African crude oil pro­duc­ing state are tak­ing over such in­vest­ments.

Kachikwu who also vis­ited the $17 bil­lion Dan­gote Re­fin­ery yes­ter­day said the project would put an end to $28 bil­lion an­nual ex­pen­di­ture on petroleum prod­ucts im­por­ta­tion into the coun­try.

He said the Dan­gote re­fin­ery would set the pace for the pri­vate sec­tor to solve Nige­ria’s prob­lem of petroleum prod­ucts.

The min­is­ter who said he was im­pressed by what he has seen said Nige­ria would stop im­port of petroleum prod­ucts in 2019.

“I am not go­ing to im­port petroleum prod­ucts in 2019 and I am go­ing to stick to this po­si­tion and so must do ev­ery­thing to make sure that the re­fin­ery is ready as sched­uled”, he said

He said one of the rea­sons why Nige­rian re­fin­ery has failed was due to bad mar­ket sys­tem but that gov­ern­ment to­gether with other stake­hold­ers in­clud­ing MOMAN must col­lab­o­rate to en­sure the re­moval of mar­ket dis­tor­tions.

“I am happy to see what is re­ally go­ing on here. we are mo­ti­vated with what is on ground”, he said

Earlier, Pres­i­dent and chief ex­ec­u­tive, the Dan­gote group, Al­haji Aliko Dan­gote had com­mended the min­is­ter for his ef­fort in en­sur­ing avail­abil­ity of petroleum prod­ucts in the coun­try, as well as his present on­go­ing ef­forts at re­vamp­ing our ail­ing re­finer­ies.

Dan­gote said cur­rently the re­fin­ery when com­pleted would be the world’s largest sin­gle line Re­fin­ery, Petro­chem­i­cal Com­plex and the world’s sec­ond largest Urea Fer­tiliser plant.

“The Re­fin­ery will have the ca­pac­ity to re­fine 650,000 bar­rels of crude oil per day. The Petro­chem­i­cal Plant will pro­duce 780 KTPA Polypropy­lene, 500 KTPA of Poly­eth­yl­ene while the Fer­tiliser project will pro­duce 3.0 mil­lion met­ric tonnes per an­num (mmtpa) of Urea”

“We are also build­ing the largest sub­sea pipe­line in­fra­struc­ture in any coun­try in the world, with a length of 1,100km, to han­dle 3 bil­lion SCF of gas per day. We also plan to con­struct a 570 MW power plant in this com­plex. As a mat­ter of fact, gas from our gas pipe­line will aug­ment the nat­u­ral do­mes­tic gas sup­ply and we es­ti­mate an ad­di­tional 12,000MW of power gen­er­a­tion can be added to the grid with the ad­di­tional gas from our sys­tem”

“We will be adding value to our econ­omy as all these projects will be cre­at­ing about 4,000 di­rect and 145,000 in­di­rect jobs. We will also save over $7.5bil­lion for Nige­ria an­nu­ally, through im­port sub­sti­tu­tion and gen­er­ate an ad­di­tional $5.5bil­lion per an­num through ex­ports of the re­fined petroleum prod­ucts, fer­til­izer and petro chem­i­cals. We en­vis­age that these projects, which would cost over $18bil­lion, would be com­pleted in 2019”, he said

“There is also in­fras­truc­tural gap. Un­like most coun­tries in the world, Nige­ria as a coun­try has not fo­cus on oil in­fra­struc­ture. There is huge in­fras­tru­ral deficit in the sec­tor. When I went to China last year, we took a doc­u­ment that shows us we have about $50 bil­lion in­fra­struc­ture gap. This In­clude pipe­line fa­cil­ity to crude oil pro­duc­tion and un­til gov­ern­ment hand off the busi­ness. Most of the in­fra­struc­ture were pro­vided by gov­ern­ment . In my view, this is not the right process. We have not en­gaged the pri­vate sec­tor suf­fi­ciently . Now that we need to bring them in, it is now a win/win for every­body. One of my strate­gies is to move di­a­logue from pub­lic sec­tor to pri­vate sec­tor sup­port in­fra­struc­ture and that is ex­actly what we are try­ing to do with the re­fin­ery, pro­vid­ing pri­vate sec­tor fund­ing to fi­nance the re­fin­ery”, he said

From left: Min­is­ter of State for Petroleum Re­sources, Ibe Kachikwu; Group Ex­ec­u­tive Di­rec­tor, Strat­egy, Cap­i­tal Projects & Port­fo­lio De­vel­op­ment, Dan­gote In­dus­tries Lim­ited, De­vaku­mar Ed­win; and Pres­i­dent/CE, Dan­gote In­dus­tries Lim­ited, Aliko Dan­gote, dur­ing the min­is­ter’s visit to Dan­gote Oil Re­fin­ery, Petro­chem­i­cal and Fer­til­izer Projects in Lekki, Lagos yes­ter­day. ARIK AIR

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