The Nigerian National Petroleum Corporation, NNPC, yesterday, stated
that it has shut down the Warri Refineries due to operational
challenges.
Group General Manager, Group Public Affairs Division of
the NNPC, Mr. Ohi Alegbe, who disclosed this, noted, however, that the
refinery is expected to be reopened for operations on Tuesday.
According to him, the decision to shut down the Warri refinery was taken because there was insufficient crude oil in the system.
“They
are supposed to have at least a 25-day sufficiency in the supply of
crude. So because of the depletion in the volume of crude they have had
to temporarily shut down.
“It was shut down on Monday. This is a temporary measure and it should be up and running by
Tuesday.”
The
NNPC, had a few days ago, stated that after proper evaluation and in
line with the terms of contract for the delivery of crude oil to the
nation’s refineries in Warri, Port Harcourt and Kaduna, the Corporation
has cancelled the current contract due to exorbitant cost and
inappropriate process of engagement.
The NNPC had stated that
this measure is aimed at reducing cost and strengthening the operational
efficiency across its value chain.
As a stop-gap measure, the NNPC
said it has engaged NIDAS Marine Limited, a subsidiary of the NNPC, to
provide crude delivery service on negotiated industry standard rate
pending the establishment of substantive contract.
The NNPC, however,
explained that it resorted to the delivery of crude oil to the
refineries by marine vessels following incessant attacks on the
Bonny-Port Harcourt refinery pipeline and the Escravos crude pipelines
by vandals and oil thieves resulting in the complete unavailability of
the pipelines in 2013.
“We have also commenced a rigorous and
transparent process of securing capable and competitive contractors for
the delivery of crude oil by marine vessels to Port Harcourt and
Warri/Kaduna Refineries pending the restoration of the crude pipeline
infrastructure,’’ the corporation added.
The NNPC further disclosed
that it had obtained the permission of President Muhammadu Buhari to
kick-start the tendering process for the 2015/2016 Crude Oil Term
Contract for the evacuation of Nigeria’s crude oil equity from the
various crude and condensate production arrangements.
According to
the NNPC, the process which would commence with the advertisement of the
Crude Oil Term contract in both National and International print media
for a period of one month has been carefully structured to weed out
‘briefcase companies’ and rent seekers.
Source: Vanguard
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