The Nigerian National Petroleum Corporation,says it’s planning to secure $2 billion financing to overhaul its Warri and Kaduna refineries by the end of June this year
The Group Managing Director of the corporation,Mele Kyari,also said talks are progressing on financing repairs to the Port Harcourt refinery after a pre-finance bid for more than $1 billion was oversubscribed.
He added that the money will be repaid in profits and fuel cargoes from the refineries, rather than in oil cargoes.
He also said the corporation is renegotiating commercial contract terms with major oil firms with a view to keeping investment flowing into a sector crucial for the nation’s economy.
According to him, the new commercial terms being negotiated would be finalised before the petroleum industry bill (PIB) — a pending long-awaited oil overhaul bill, is passed.
He added that the companies would have the option of the newly negotiated commercial terms or moving to the updated terms outlined under the new law.
Meanwhile,the Major Oil Marketers Association of Nigeria has said emphasized the need to nip in the bud incessant theft, pipeline vandalism and high cost of crude oil production in Nigeria.
Mr Tunji Oyebanji, Chairman, MOMAN,explained that the development could only be addressed if issues between International Oil Companies and their host communities are addressed in the Petroleum Industry Bill currently undergoing public hearing at the National Assembly.
He added: “The PIB is looking at what the share of the host communities will be and if you make a law stating what will be provided for host communities, incidents of pipeline vandalism and oil theft will reduce.The PIB should formalise the relationship between the IOCs and host communities.
“Presently, what we find is that the oil companies, especially IOCs, are taxed with the petroleum profit tax and other royalties which are very substantial. So, when the host communities go and meet them for assistance, they will decline because they feel they are paying so much in royalties and taxes to the government.
“They expect the government to provide infrastructure such as schools and hospitals to these host communities.But the host communities will be confronting the companies because they are the ones on ground, carrying out production activities.’’
He said by the time the burden of taxes, royalties and taking care of the host communities are put on the IOCs, it will drive up the cost of oil production in the country.
Source: Independent