Business
Warri refinery shut down
The Warri Refineries was on Monday shut down by the Nigerian National Petroleum Corporation (NNPC) over non availability of crude oil in the system.
This was made known on Friday by the Group General Manager, Group Public Affairs Division of the corporation, Mr. Ohi Alegbe.
He however noted, that the refinery is expected to be reopened for operations on Tuesday.
“They are supposed to have at least a 25-day sufficiency in the supply of crude. So because of the depletion in the volume of crude they have had to temporarily shut down.
“It was shut down on Monday. This is a temporary measure and it should be up and running by Tuesday”, he said,
The NNPC, had a few days ago, stated that after proper evaluation and in line with the terms of contract for the delivery of crude oil to the nation’s refineries in Warri, Port Harcourt and Kaduna, the Corporation has cancelled the current contract due to exorbitant cost and inappropriate process of engagement.
Read also: NNPC terminates GEJ’s oil swap contracts
The NNPC had stated that this measure is aimed at reducing cost and strengthening the operational efficiency across its value chain.
As a stop-gap measure, the NNPC said it has engaged NIDAS Marine Limited, a subsidiary of the NNPC, to provide crude delivery service on negotiated industry standard rate pending the establishment of substantive contract.
The NNPC, however, explained that it resorted to the delivery of crude oil to the refineries by marine vessels following incessant attacks on the Bonny-Port Harcourt refinery pipeline and the Escravos crude pipelines by vandals and oil thieves resulting in the complete unavailability of the pipelines in 2013.
The NNPC further disclosed that it had obtained the permission of President Muhammadu Buhari to kick-start the tendering process for the 2015/2016 Crude Oil Term Contract for the evacuation of Nigeria’s crude oil equity from the various crude and condensate production arrangements.
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