The Nigerian National Petroleum Corporation, NNPC, said it has finalized plans to get external funds of $500 million to fix its refineries as it expects to invest about $20 billion in its operations in 2016.
The Group Managing Director, Dr. Ibe Kachikwu, stated this at a luncheon organised by the Petroleum Club, Lagos. The $500 million, Kachikwu said, will bring the refineries back on course to give the required capacity output, adding that the funds would be repaid over the next seven to nine years.
He said the two of the refineries would be shut down for eight to nine months for quick repairs, while the remaining, which are better in shape would be used to supplement imports. They would be shut down after the other two are back on stream.
He reiterated his commitment to making NNPC a profitable company, and to accomplish this target, he has adopted some measures including the unbundling of the corporation, cancellation of offshore processing agreement (OPA), crude swap and other unprofitable business models.
The GMD also said that the fiscal regime of the petroleum industry bill, PIB, will be removed so as to address other salient issues in the contentious bill.
According to him, NNPC will experience structural and cultural shift in its management, as its targets 3 million barrels production for 2016, while complete unbundling of the Corporation will be effected. The GMD also said that the complete forensic audit of the NNPC will be ready in December.
