OPPORTUNITIES TO BE HARNESSED IN NIGERIA'S DOWNSTREAM SECTOR
Originally published on July 5, 2018
At the 17th Nigeria Oil and Gas Conference recently held in Abuja, Engr Henry Ikemefuna Obih, NNPC Chief Operating Officer-Downstream positioned that Nigeria has come a long way, looking back from few years, when there was deregulation in PMS, which is the only product that remain regulated in the downstream.
“Over 50% of demand is PMS on a daily basis, 400, 000barrels are consumed. Also 147 depots in Nigeria while 87 are located mostly in Lagos. Depot utilization today is 25% which 75% is hanging in the box.” He explained.
Also speaking at the conference is Engr Anibor Kragha, NNPC Chief Operating Officer-Refineries. He buttressed that there has been a tremendous progress compared to the previous years. He recalled that 8million barrels were produced in 2015 at 6% while 18% totally 30million barrels were produced in 2017, showing positive and tremendous progress in the sector.
Mr Reginald Stanley, Chairman Petrowest Energy, elucidated the positive side of legislation through the passing of Petroleum Industry Bill (PIB) from the National Assembly which catered for operating guidelines. He commended the current government initiated treasury single account and attributed NNPC non-indebtedness to it.
Kragha expressed that automated modern technology can be initiated in the downstream sector as this will enable self-service without attendants in filling stations. He also noted that practices of this sort are already adopted in developed countries’ international downstream sector. “The development of technology across the value chain and upgrading monitoring devices like CCTV is also an advantage.” He added.
On the role of modular refineries in closing the oilpot gaps in the downstream sector, the Chief operating Officer explained that modular refineries initiative is a good one as PMS is mostly and largely consumed 50% compared to HHK, Diesel etc as a result of lack of capacity in refineries and agro-allied production.