The Minister of State for Petroleum Resources, Chief Timipre Sylva, has opened up on how the Federal Government is rallying equities in upcoming private petroleum refineries in the country.
In an exclusive interview with Business Hilights Abuja Bureau Chief, the minister revealed that “We have taken 20 per cent equity in the Dangote refinery. We have also taken 20 per cent equity in Azike refinery.
“In the Walter Smith refinery, we took 30 per cent and in Dupaul, we’ve taken more than 20 per cent. Dupaul refinery has already concluded construction and it only remains to start operations. I’m sure within the next one month, and they will start operations.
“We are hoping the Dangote refinery comes on stream this year and once our own rehabilitated refineries start to work, we will be able to get the country wet (with petroleum products).
“These are contractual issues. They need to have fixed stock guarantee…These are commercial considerations between the owner of the modular refinery and the supplier of crude oil. As a ministry, we intervene to ensure that they are able to iron out the issues between the two parties.
“With Dangote, there’s already an agreement and we don’t have any problem. Some of these modular refineries have to get the crude from assets that are near them and they have these contracts with private sector owners of these assets; which we are intervening, to resolve.”
However, he added that some modular refineries had been completed but are still faced with the challenge of crude oil supply.
While assuring that the rehabilitation of 60,000 barrels per day Port Harcourt refinery had been completed, the Minister averred that the refinery would commence production by the first quarter of this year.
