OrderPaperToday – Minister of State for Petroleum Resources, Ibe Kachukwu, has disclosed that between $300 million and $500 million will be required to fix the nation’s four refineries in Warri, Port Harcourt and Kaduna for effective service delivery.
Kachukwu who doubles as Group Managing Director of Nigerian National Petroleum Corporation (NNPC) also conceded that he did not make adequate consultations before announcing his wide-ranging but controversial reforms in the corporation.
Kachikwu made these known while interfacing with the joint House of Representatives Committee on Gas Resources, Petroleum (Downstream), Petroleum (Upstream) and Local Content, over the crisis trailing the ‘unbundling.’
The lawmakers and the minister however resolved to work harmoniously towards the timely passage of the Petroleum Industry Bill (PIB) as a permanent measure to reforming the NNPC and the oil and gas industry in general.
Kachikwu told the lawmakers that “unbundling was used to qualify the sub-sects” otherwise called ‘Divisions’, and not companies as would have been applicable to the actual unbundling of the Corporation as stipulated in the PIB.
He also said the restructuring at NNPC will contribute towards achieving 16 to 18 month self-sufficiency of supply of petroleum products as well as the establishment of the modular type refineries by investors.
He further explained that 17 subsidiaries of NNPC have been identified and that additional four were created, adding that the administrative restructuring would help in generating more jobs, profitability and efficiency of various sub-sects of the corporation.
Kachikwu also assured that government has no plan to disengage the 10,000 workers on the corporation’s payroll.