The Nigerian National Petroleum Corporation
will spend N152bn on the repair of three of the nation’s
refineries in 2013.
The amount is contained in the budget
document submitted to the National Assembly Joint Committee on Petroleum
(Downstream) last week.
Details of the budget show that the total
maintenance cost for the Port Harcourt Refinery by its original
builders, basic engineering design for the Fluid Catalytic Cracking Unit
and RFCC plant project is estimated at N76.779bn.
A breakdown of the N76.779bn
indicates that N43.5bn will be spent on the refinery’s
rehabilitation, N32.646bn on the plant project and N636m on basic
engineering design.
The total estimated expenditure for the
maintenance of the Warri Refining and Petrochemical Company is put
at N43.12bn.
The NNPC is planning to spend N41.879bn on
the refinery’s rehabilitation; N159m on fire detection alarm
systems; N286.2m on replacement of the HP BFW Pumps and Driver
101-P-02B; and N79.5m on the upgrade of the co-boiler
instrumentation and burner management system.
The corporation will spend N32.106bn on the
Kaduna Refining and Petrochemical Company. The breakdown of the
N32.106bn shows that N31.441bn will go into its
rehabilitation and N317.38m for the reconstruction of
FCCU, gasoline tank (51TK14B) and purchase of accessories.
Rehabilitation of raw water intake road will gulp
N178.12m, while new maintenance office building will cost N170m.
The corporation, in 2012, budgeted
N154.48bn for capital expenditure, but spent N23.1bn only.
In the budget statement, which was obtained
by our correspondent on Monday, the NNPC said that the
Federal Government had yet to pay it N217bn kerosene subsidy.
It added that non-payment of the
claims was hindering the execution of its capital projects.
The corporation stated “Budget performance
is hampered by lack of funding resulting from non-payment of kerosene subsidy
(N217bn) and other outstanding claims from the Federal Government.”
The NNPC also plans to move
42.3 milion barrels of crude oil to the domestic refineries for processing in
2013.
As a result, a total of 18.64 billion
litres of products are expected to be derived from local refining during the
period.
The document says the corporation is
optimistic about ensuring 100 per cent products evacuation from the
refineries, including reducing operational and demurrage costs by 10 per cent
each on the 2012 levels.
NNPC also promised to achieve a 10 per cent
growth in internally-generated revenue in 2013.
On projections for the refineries, the
corporation said it intended to “transform the refineries into stand alone
profitable business units; continue integrity type maintenance project; build
capabilities and improve on refinery operation and continue to utilise
alternative crude supply routes to the refineries as a secondary supply
strategy.”
The National Assembly had queried the NNPC for
spending more than it earned in 2012. It consequently requested details
from where it got the extra money to fund its activities.
The corporation had said it had a total receipt
of N2.36tn by the end of September 2012, but had an operational expenditure of
N2.84tn.
The Minister of Petroluem Resources, Mrs. Diezani
Alison-Madueke, had in October said that the Federal Government planned to
spend N250bn on the Turn-Around Maintenance of the Port Harcourt, Warri
and Kaduna refineries.
She said the government would spend $146m
out of which $32m (75 per cent) had already been paid for the materials needed.
Several TAMs had been performed on the
refineries in the past without visible results.
A newspaper had in November 2011 reported
that $1.78bn was spent on TAMs of the four refineries in the
last 12 years.
Quoting the NNPC Annual Statistical
Bulletin for 2010, it stated that the Kaduna refinery operated at 31.39 per
cent capacity utilisation in 2001; 34.95 per cent in 2002; 15.96 per cent
in 2003; 26 per cent in 2004; 33.08 per cent in 2005; 8.34 per cent
in 2006; 0.00 per cent in 2007; 19.56 per cent in 2008; 20.02 per cent in
2009; and 20.46 per cent in 2010.
The Port Harcourt refinery performed at
60.73 per cent in 2001; 52.17 per cent in 2002; 41.88 per cent in
2003; 31.04 per cent in 2004; 42.18 per cent in 2005; 50.26 per
cent in 2006; 24.87 per cent in 2007; 17.84 per cent in 2008;
9.08 per cent in 2009; and 9.17 per cent in 2010.
The Warri refinery operated at 48.29 per
cent in 2001; 55.53 per cent in 2002; 14.27 per cent in 2003; 9.10 per
cent in 2004; 54.85 per cent in 2005; 3.85 per cent in 2006; 0.00
per cent in 2007; 38.52 per cent in 2008; 43.01 per cent in
2009; and 43.36 per cent in 2010.
Punch
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