President of Independent Petroleum Marketers Association of Nigeria, Mr. Chinedu Okonkwo, has called on the Federal Government to refurbish the country’s old refineries to increase production output and quality.
The association also denied allegations that it wanted President Muhammadu Buhari to sell off existing refineries as scrap.
Speaking in an interview, Okonkwo stated that instead of calling on the Federal Government to sell the refineries, IPMAN was encouraging the Buhari-led administration to allow more refineries to be built.
He said, “We in IPMAN will like a situation where the refineries work to its full capacity. That is what we want. The issue of scrapping (of existing refineries) is very inappropriate.
I do not think it is the best option for now given the recent statement of the Minister of State for Petroleum Resources, Mr. Ibe Kachikwu that anyone who wants to build refineries can leverage on what is currently on ground by building their refineries close to the existing ones.
“There is need for government to open the system to private entrepreneurs who may also come with their idea of how to make the refineries work better.
While we are not supporting the idea of scrapping and selling the existing refineries if they are operating as they should, we should encourage the building of new refineries.”
The IPMAN president noted that for the production of oil to be cost-effective and profitable, new refineries, equipped with latest technology, were needed.
He said, “We have new refineries which are equipped with the latest technology. That is why you will see in advanced countries that the emission level is very low – about two to five per cent emission and with high yields.
For instance, with these new refineries with latest technology you can get 100 per cent of by-products of what is refined.”(Punch)
