FG to sell crude to ‘integrated’ illegal refiners
The Federal Government has concluded plans to integrate illegal refiners as stakeholders and sell crude directly to them.
A government official told State House reporters yesterday that the plan was part of the present administration’s modular refinery initiative proposed by the Minister of State for Petroleum Resources, Ibe Kachikwu.
The official, who asked not to be named, explained that this was aimed at stopping crude oil theft and vandalism by illegal refiners in the oilproducing communities.
He said a Memorandum of Understanding would be established under the plan with the affected communities determining their share; and the Federal Government supervising the implementation to be driven by industry operators and the communities.
He stated: “Specific consideration on how to integrate local illegal refiners in the oilproducing communities into the Federal Government’s proposed modular refinery concept is now in progress with the Presidency and the Nigeria Sovereign Investment Agency spear-heading the efforts.
“Under the plan being considered in the Presidency, the Federal Government could supply crude to the local refineries at a reasonably considered price as an incentive to stop the current practice whereby the illegal refiners vandalise and steal the crude.
“This concept would also prevent the environment degradation that the spills and damaging the trunklines have been causing. Also, marginal field operators can also supply crude to the new modular refineries that would have the illegal refiners integrated.”