Why refineries were shut down — NNPC

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THE Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari, says the nation’s refineries were deliberately shut down because operations were no longer sustainable.

Kyari stated this when he appeared before the House of Representatives Committee on Petroleum Upstream on Thursday in Abuja.

He disclosed that the NNPC was unable to supply crude oil to the refineries adding that it was only excravos pipeline which the NNPC managed to sustain through contracting process.

According to him, it is practically impossible to run pipeline at their optimum capacity.

“For instance, to run Kaduna and Warri refinery, you need to deliver 170,000 barrel of oil per day so that both will operate at 70 per cent capacity,” he said.

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Kyari said that at the moment, it only had over 5,000 kilometers of pipelines with 13 fuel depots, which according to him must be protected to forestall the activities of vandals.

“And I can tell you today that except the Atlas cove to Ibadan line and also the Portharcourt to Aba line, none of these pipelines is serviced.

“We cannot flow product into these lines, the cheap one is to say they are aged but the real reason is that the level of activities of vandals on these lines is gross, monumental and profound.

“At every point within a month we fix 80 vandal points, the option is to shut them down and the result of having one depot is what we have seen in Lagos,” he said.

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The GMD said that the activities of vandals made it impossible for pipelines to be operated, adding that from January to June it had lost petroleum product close to N43 billion.

Kyari said that to protect the pipelines, the NNPC had to engaged the service of security agencies to curtail the activities of vandals.

He urged the House of Representatives to urgently pass the Petroleum Industry Bill (PIB), as that would encourage investors in the sector.

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