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Market Digest Nigeria

Economy

NNPC seeks Chevron’s partnership to build condensate refinery

NNPC

The Nigerian National Petroleum Corporation (NNPC) says it is seeking partnership with Chevron Nigeria Limited (CNL) to establish a condensate splinter refinery. The corporation disclosed this in a statement signed by Mr Ndu Ughamadu, the Group General Manager, Group Public  Affairs Division in Abuja.

A Condensate splinter Refinery is a simple refinery designed to handle light Crude. The corporation said that its Group Managing Director, Malam Mele Kyari, made the request when the management of Chevron Nigeria Limited  led by its Managing Director, Jeff Ewing, was on a business visit to the NNPC Towers. Kyari said that setting up refineries to end the shame of fuel importation was not just a responsibility for NNPC alone, but also for its Joint Venture (JV) partners.

The GMD also urged CNL to work closely with the corporation to evolve modalities for a downward review of the cost structure of crude oil production in Nigeria in order to boost profit and revenue for the country. “We hold Chevron Nigeria Limited (CNL) in a very high esteem for her efficiency and cost optimization. We look more up to the company to increase production and reserve, reduce cost and increase local refining capacity,” Kyari said.

On cash call, the GMD explained that NNPC had done very well in meeting its financial obligations to the company in the last three years, adding that the move was expected to boost the confidence of JV partners to commit to further investment in the upstream. He urged the company to further collaborate with NNPC to increase crude oil production and grow reserves in the country. “NNPC is ready to work with Chevron to ensure that the Final Investment Decision (FID) on NLNG Train 7 was taken soonest for the benefits of all the investors. “Efforts were on top gear by the government and security agencies to secure all the oil and gas pipelines across the country and the reinvigorating security architecture to provide safe working environment for all operators,”  Kyari said.

Earlier, Ewing, said his company was prepared to work with the new management of NNPC to grow production. He applauded the NNPC for the prompt payment of the cash calls arrears, noting that the gesture has further bolstered the activities of the rigs and the entire operations of the company.

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