Dangote In Trouble As Govt Approves N.5 Trillion TAM For Moribund Refinery

<p>&nbsp&semi;<&sol;p>&NewLine;<p><em>Dangote in trouble as stiff competition sets into oil production<&sol;em><&sol;p>&NewLine;<p><strong><a href&equals;"https&colon;&sol;&sol;openlife&period;ng&sol;">OpenLife Nigeria<&sol;a><&sol;strong> reports that the Federal Executive Council &lpar;FEC&rpar; has approved the sum of &dollar;1&period;5 billion for the rehabilitation of Port Harcourt Refinery in Rivers state&period; The Turn Around Maintenance&comma; TAM&comma; when completed&comma; would change the oil and gas narrative in Nigeria&period;<br &sol;>&NewLine;The development&comma; insider confides&comma; would provoke healthy competition for Alhaji Aliko Dangote who is spending humongous sum to build a world class refinery in Lagos&period;<br &sol;>&NewLine;Dangote’s refinery is expected to be producing a 650&comma;000 barrels per day&period;<br &sol;>&NewLine;It is the Africa&&num;8217&semi;s biggest oil refinery and the world&&num;8217&semi;s biggest single-train facility&comma; upon completion&period;<br &sol;>&NewLine;Those close to the Africa’s richest man say he is of the belief that Nigerian refineries would not work again&comma; thereby creating a monopoly pathway for production and sale&period;<&sol;p>&NewLine;<p>The approval was announced on Wednesday&comma; at the 38th virtual FEC meeting presided over by President Muhammadu Buhari in Abuja&period;<br &sol;>&NewLine;Timipre Sylva&comma; minister of state for petroleum&comma; said the rehabilitation will be done in three phases of 18&comma; 24 and 44 months&period;<br &sol;>&NewLine;He said the contract was awarded to an Italian company&comma; Technimount SPA&comma; who are experts in refinery maintenance&period;<br &sol;>&NewLine;Silva said the funding has three components from Nigerian National Petroleum Corporation &lpar;NNPC&rpar; Internally Generated Revenue &lpar;IGR&rpar;&comma; budgetary allocations provisions and <a href&equals;"https&colon;&sol;&sol;openlife&period;ng&sol;">Afreximbank<&sol;a>&period;<br &sol;>&NewLine;&OpenCurlyDoubleQuote;The Ministry of Petroleum Resources presented a memo on the rehabilitation of Port Harcourt refinery for the sum of 1&period;5 billion&comma; and that memo was &dollar;1&period;5 billion and it was approved by council today&comma;” he said&period;<br &sol;>&NewLine;&OpenCurlyDoubleQuote;So we are happy to announce that the rehabilitation of productivity refinery will commence in three phases&period; The first phase is to be completed in 18 months&comma; which will take the refinery to a production of 90 percent of its nameplate capacity&period;<br &sol;>&NewLine;&OpenCurlyDoubleQuote;The second phase is to be completed in 24 months and all the final stage will be completed in 44 months and consultations are approved&period;<br &sol;>&NewLine;&OpenCurlyDoubleQuote;And I believe that this is good news for Nigeria&period;”<br &sol;>&NewLine;<strong>Source&colon; The Cable News<&sol;strong><&sol;p>&NewLine;