{"id":62956,"date":"2018-07-12T17:33:11","date_gmt":"2018-07-12T16:33:11","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=62956"},"modified":"2018-07-12T17:33:11","modified_gmt":"2018-07-12T16:33:11","slug":"nigeria-niger-joint-refinery-project-another-buharis-greenfield-deceit","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/nigeria-niger-joint-refinery-project-another-buharis-greenfield-deceit\/","title":{"rendered":"Nigeria-Niger Joint Refinery Project: Another Buhari\u2019s Greenfield Deceit"},"content":{"rendered":"<div class=\"msg-body P_wpofO iy_A\" data-test-id=\"message-view-body-content\">\n<div class=\"jb_0 X_6MGW N_6Fd5\">\n<div>\n<div dir=\"ltr\">By: Ifeanyi Izeze<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Barringunforeseen circumstances, President Muhammadu Buhari, and his<\/div>\n<div dir=\"ltr\">Nigeriencounterpart, Mahamadou Issoufou will in few weeks (days) time sign<\/div>\n<div dir=\"ltr\">a Memorandumof Understanding (MoU) on the planned 100,000 barrels per day<\/div>\n<div dir=\"ltr\">(bpd) refinery tobe located on the Katsina border with Niger Republic.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Is it notinteresting that Nigerians would have completely been oblivious<\/div>\n<div dir=\"ltr\">of this jointproject if not that the Minister of State for Petroleum<\/div>\n<div dir=\"ltr\">Resources, IbeKachikwu, made a podcast on \u201cthe refineries and local<\/div>\n<div dir=\"ltr\">production capacity,\u201dwhere he disclosed that the Niger-Nigeria refining<\/div>\n<div dir=\"ltr\">relationship is one projectin Nigeria\u2019s Greenfield Plan being pursued by<\/div>\n<div dir=\"ltr\">the Federal Government.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">As said by theMinister on the podcast, \u201cWe have the private sector<\/div>\n<div dir=\"ltr\">relationship to build100,000bpd refinery there. Both governments have<\/div>\n<div dir=\"ltr\">largely reached a Memorandumof Understanding (MoU). In July, the two<\/div>\n<div dir=\"ltr\">Presidents will be in Nigeria to sign-off on the negotiated basis of this<\/div>\n<div dir=\"ltr\">relationship, and then, the private sectorwill be asked to put in the<\/div>\n<div dir=\"ltr\">funding that they\u2019ve indicated that they have.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">\u201cWe are almostconcluding the MoU to build the pipeline from Niger to<\/div>\n<div dir=\"ltr\">Nigeria since the outfitwould be utilising Niger crude though of slightly<\/div>\n<div dir=\"ltr\">lesser quality thanNigeria\u2019s. So, we have agreed to build the pipeline to<\/div>\n<div dir=\"ltr\">the border town betweenNiger and Nigeria, which is in Katsina State.\u201d<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Is thereanything wrong with the brains of our people in government as<\/div>\n<div dir=\"ltr\">manifested in theway they reason and the decisions they make? If the<\/div>\n<div dir=\"ltr\">Katsina-Niger refinery isgoing to be purely a private-sector initiative,<\/div>\n<div dir=\"ltr\">why is our President who alsodoubles as Nigerian Minister of Petroleum<\/div>\n<div dir=\"ltr\">Resources and the Nigerien Presidentsigning an Agreement on behalf of<\/div>\n<div dir=\"ltr\">their countries? Is the MoU not supposed tobe between the private<\/div>\n<div dir=\"ltr\">investors or between them and Nigerian government on onehand and Nigerien<\/div>\n<div dir=\"ltr\">government on the other?<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Why is our NNPCinvolved in the project? Is the NNPC the technical partner<\/div>\n<div dir=\"ltr\">or a joint venturepartner? So many questions! If the private investors<\/div>\n<div dir=\"ltr\">have agreed that they havethe money for the project, one would have<\/div>\n<div dir=\"ltr\">expected them to be asking Nigeriajust for the license to build the plant<\/div>\n<div dir=\"ltr\">at the Katsina border. Also they shouldon their own work out a crude oil<\/div>\n<div dir=\"ltr\">supply agreement with Niger Republic. Whydrag our president into this<\/div>\n<div dir=\"ltr\">purely private initiative as we were told?<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">What does itmean for the Nigerian president and his Nigerien counterpart<\/div>\n<div dir=\"ltr\">to sign an MoU ona refinery project, is it not that the two countries are<\/div>\n<div dir=\"ltr\">jointly executing theproject? You see where the deceit lies!<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Simply becausewe could no longer take the Nigerien crude into our own<\/div>\n<div dir=\"ltr\">refineries as wassecretly pushed for the Kaduna Refinery by the operators<\/div>\n<div dir=\"ltr\">of NNPC, so we willbuild a 100, 000 barrels per stream day refinery near<\/div>\n<div dir=\"ltr\">them. Is it not clearthat there is an outright conflict of interests in<\/div>\n<div dir=\"ltr\">this arrangement with NigerRepublic? Why is it that people in<\/div>\n<div dir=\"ltr\">leadershipposition in this country find it very difficult to learn and<\/div>\n<div dir=\"ltr\">correctthemselves?<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Availability ofcrude oil feedstock to our three refineries as result of<\/div>\n<div dir=\"ltr\">breaches on the supplylines is only a meagre part of the problem why our<\/div>\n<div dir=\"ltr\">refineries have remainedcomatose all these years. From all indications<\/div>\n<div dir=\"ltr\">now, there are people bothinside and outside the NNPC who are working<\/div>\n<div dir=\"ltr\">assiduously to ensure therefineries don\u2019t work at all. Ofcourse how do you<\/div>\n<div dir=\"ltr\">expect them to allow therefineries work when few people are raking \u2013in<\/div>\n<div dir=\"ltr\">billions of dollars on monthlybasis from the crude-for-product swap<\/div>\n<div dir=\"ltr\">arrangement that has forced the countryto depend almost 100 percent on<\/div>\n<div dir=\"ltr\">imported fuel?<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Severally it hasbeen said that the security agencies may not be telling us<\/div>\n<div dir=\"ltr\">all they know aboutbreaches on our crude oil supply lines which has been<\/div>\n<div dir=\"ltr\">alleged to be sponsoredmost times by different interest groups including<\/div>\n<div dir=\"ltr\">people in the NNPC, oilmajors, crude-for-product contractors, and then<\/div>\n<div dir=\"ltr\">buyers of stolen Nigeriancrude.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">The question is:whose responsibility is it to thoroughly investigate the<\/div>\n<div dir=\"ltr\">allegations ofsabotage by people in and around government and put measures<\/div>\n<div dir=\"ltr\">to checkmate them?Is it not these same people who are going to Niger to<\/div>\n<div dir=\"ltr\">build refinery under thepretence of finding solutions to the perennial<\/div>\n<div dir=\"ltr\">scarcity of petroleum productsin the country?<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">If the Presidentand his NNPC can hurriedly package this Niger Republic<\/div>\n<div dir=\"ltr\">deal, why has it becomeimpossible to also get the same private sector<\/div>\n<div dir=\"ltr\">investors to cite refineries inareas within Nigeria where they may not<\/div>\n<div dir=\"ltr\">even need over 1000 kilometres of crudeoil pipelines? You see that there<\/div>\n<div dir=\"ltr\">is something not very straight in NigerRefinery deal!<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">By the way, youare citing a 100, 000 barrels per day refinery with the<\/div>\n<div dir=\"ltr\">hope of collectingcrude oil feedstock from Agadem Oilfield in Niger<\/div>\n<div dir=\"ltr\">Republic that as at todayrecords only 20, 000 barrels per day as its peak<\/div>\n<div dir=\"ltr\">production with the hope oframping it up to 60, 000 barrels per day (this<\/div>\n<div dir=\"ltr\">is hopefully and with hugeinvestment in further development of the<\/div>\n<div dir=\"ltr\">oilfield). At present, the entirety ofoil extracted from the Nigerien<\/div>\n<div dir=\"ltr\">Agadem field is sent to the Chinese-runrefinery in Zinder which has not<\/div>\n<div dir=\"ltr\">been able to even run at 70 percent of the 20,000 barrels per day<\/div>\n<div dir=\"ltr\">installed capacity because of availability of crudefeedstock and other<\/div>\n<div dir=\"ltr\">technical and economic issues.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Although this may sound like aconspiracy theory, from all indications,<\/div>\n<div dir=\"ltr\">what is unfolding may be part of theinitial plan by those that built the<\/div>\n<div dir=\"ltr\">Kaduna refinery in 1985 to run on importedcrude oil grades for its<\/div>\n<div dir=\"ltr\">processes. Those who know would confirm that in thefirst instance and for<\/div>\n<div dir=\"ltr\">whatever reasons, the Kaduna Refinery was not even designedto process<\/div>\n<div dir=\"ltr\">crude oil from the Niger Delta. On the orders from those who were incharge<\/div>\n<div dir=\"ltr\">then, Chiyoda Chemical Engineering and Construction Company (now<\/div>\n<div dir=\"ltr\">ChiyodaCorporation) of Japan designed the Kaduna refinery to process<\/div>\n<div dir=\"ltr\">heavy\/paraffiniccrude oil grades alien to the light and sweet grades that<\/div>\n<div dir=\"ltr\">abound in ourcountry.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Is it not clearer why the NNPCrecently proposed\u00a0 an almost 2000kilometre-<\/div>\n<div dir=\"ltr\">pipeline to collect crude oil feedstock from the Agadem oilfield inNiger<\/div>\n<div dir=\"ltr\">Republic for the Kaduna Refinery that has at best remained a<\/div>\n<div dir=\"ltr\">mere\u201ckporfire\u201d cooking stove?<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Except the federalgovernment convinces Nigerians that the \u201cNigerien<\/div>\n<div dir=\"ltr\">alternative\u201d represents thefirst phase of similar Greenfield<\/div>\n<div dir=\"ltr\">consideration, it will be very difficult totell anyone that such<\/div>\n<div dir=\"ltr\">initiative is not clannish and with some clandestinemotives.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Shamefully, ourgovernment and our NNPC are going to build a refinery at<\/div>\n<div dir=\"ltr\">the Katsina Border forNiger Republic justas Nigeria\u2019s existing \u00a0three<\/div>\n<div dir=\"ltr\">refineriesare performing at a combined installed capacity utilisation of<\/div>\n<div dir=\"ltr\">less than 10percent. Up Nigeria!<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">The country\u2019srefineries recorded an operating deficit of N11.89 billion,<\/div>\n<div dir=\"ltr\">in the firstquarter of this year according to the NNPC March 2018<\/div>\n<div dir=\"ltr\">report.\u00a0The reportattributed the loss to \u201cthe refineries\u2019 downturn with<\/div>\n<div dir=\"ltr\">high cost of operations.\u201d<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">How can our leadersbe making pronouncements and taking decisions that give<\/div>\n<div dir=\"ltr\">credence to allegationsby some disgruntled Nigerians that certain people<\/div>\n<div dir=\"ltr\">in government came to pushclannish agenda? Am just wondering! God help<\/div>\n<div dir=\"ltr\">Nigeria o!<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">(IFEANYI IZEZE writes from Abuja:\u00a0<a href=\"mailto:iizeze@yahoo.com\">iizeze@yahoo.com<\/a>; 234-8033043009)<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"jb_0 X_6MGW N_6Fd5\">\n<div class=\"P_0 je_fq7\">\n<ul class=\"hd_n D_F eo_HB M_gQyVX P_0\">\n<li class=\"E_6Fd5 Y_6LEV\" data-test-id=\"attachment-tray-list-item\">\n<div class=\"W_3n93F p_R\" data-test-id=\"attachment-item\">\n<div class=\"I_2iedTo k_w H_7yHc p_R o_h\" data-test-id=\"attachment-container\">\n<div class=\"D_F ab_C gl_C H_6D6F\"><\/div>\n<\/div>\n<div class=\"A_6Eb4 i_6FIA J_x D_F r_P\">\n<div class=\"en_0\">\n<div class=\"D_F u_e69\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>By: Ifeanyi Izeze Barringunforeseen circumstances, President Muhammadu Buhari, and his Nigeriencounterpart, Mahamadou Issoufou will in few weeks (days) time sign a Memorandumof Understanding (MoU) on the planned 100,000 barrels per&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":62810,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-62956","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-opinions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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