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FG to hands-off majority stakes in 4 refineries

Emeka Okoroanyanwu

The Federal Government said it would give up majority stakes in government’s four refineries across the country.

Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, disclosed this during a discussion programme on Channels Television.

He said that the Federal Government wanted to implement an operating model in which the government-owned NNPC would be a minority shareholder in the assets and noted that the government wanted the LNG model for the refineries, where the private investors would operate and manage the refineries.

The NNPC boss, however, did not specify how the government planned to transfer ownership, or who they hoped to transfer it to.

READ ALSO: https://www.thexpressng.com/2020/09/15/discos-to-pay-for-rejecting-load-allocation-nerc/

He also explained that plans were underway to rehabilitate the four major refineries to start producing at maximum capacity. This plan is expected to place Nigeria as one of the world’s biggest exporter of petroleum products within the next 3 years.

Kyari disclosed that the refineries, which have only worked sporadically for years due to severe underinvestment, would need serious repairs and refurbishment as against the routine Turn Around Maintenance (TAM).

NNPC in April shut down all its four refineries to secure funding for their refurbishment, saying it would no longer manage them when they reopened.

He said that the pipelines which supplied crude oil to the refineries in Kaduna, Warri and Port Harcourt were badly damaged.

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