April 3, 2012:

ABUJA—Acting Managing Director of Warri Refining and Petrochemicals Company, WRPC, Engr. Samuel Babatunde, disclosed yesterday that the Federal Government had budgeted N94.2 billion for the Turn Around Maintenance, TAM, of the refinery.  Speaking to the Senator Magnus Abe-led Senate Committee on Petroleum Resources, Downstream, during an oversight tour of the facility , weekend, Engr.  Babatunde, who noted that the move will help address importation of petroleum products, stressed that the proposed TAM was expected to last between 24 to 36 months, with an upgrade for long term operative plan of 50 years.

Meanwhile, a similar TAM is being planned for the Port Harcourt refinery, with the cost put at $463 million and is expected to commence in October, while the date for the commissioning is slated for December 2012.  Babatunde explained that Saipem, the original builder of Warri refinery, had been selected as the contractor to handle the rehabilitation of the refinery.

He said: ‘’The $600 million figure is not sacrosanct; it’s a rough estimate. It’s just an estimated value. There is a “two to three year programme to rehabilitate  refineries in the country.”

He told the Senate Committee that vandalisation of its pipelines and crude oil theft from Escravos had been one of the major challenges facing  the refinery, saying ‘’we are victims of pipeline vandalisation and disruptions. “There is a running battle to keep our plants running at even 25 percent; it’s a directive from Abuja.”  Speaking on the disruptions of crude oil supply to the WRPC, he said ‘’only 40-50 percent crude pumped from Escravos gets to the WRPC. The remaining are vandalized.

‘’In fact, in less than 30 minutes of pumping crude from Escravos, there is disruption in the system. The state of refineries are in terrible state of disrepair but some works are in progress.”

In his remarks after inspection, Senator Magnus Abe, who called on the management of WRPC to ensure that Nigerians got petroleum products at cheaper rate as well as end importation of the products, said ‘’Nigerians believe that as an oil-producing country, we shouldn’t be importing fuel. Nigerians don’t want to know about the mathematics of oil; all they are concerned with and all they are saying is that Nigeria has no business importing refined products.

‘’There are lots of expectations from Nigerians on these refineries and they are not being met. Any investment in the downstream sector will be a drain if the twin challenges are not quickly tackled. ’Taking fuel from Warri to Maiduguri by trucks is akin to taking them by ‘buckets.’ no economy can grow that way. We cannot do without the pipelines; this has nothing to do with oil. It has to do with our own survival as a country. A lot still has to be done with the challenges of our pipelines and crude oil theft.” Senator Abe was accompanied on the visit by his deputy, Senator Danjuma Goje; Senators Abdulmumuni Hassan and Ibrahim Musa.

By Vanguard News