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Kalu, Alli Head Panel on Refineries

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Without prejudice to the on-going rehabilitation and turn-around maintenance (TAM) of the Port Harcourt, Warri and Kaduna refineries, as well as the building of Greenfield refineries in the country, the Federal Government Wednesday set up a 22-man National Refineries Special Task Force to make recommendations that will lead to the overhaul of refining operations and output in the country.

The task force, which was set up in Abuja by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, will be chaired by former Minister of Finance, Dr. Kalu Idika Kalu while the former Managing Director of the old Unipetrol, Mallam Yusuf Alli will serve as its alternate chairman.

The task force has been mandated to produce a diagnostic report on the operations, finances and efficiency of Nigeria’s four main refineries situated in Port Harcourt, Warri and Kaduna.

According to a statement signed by the Permanent Secretary in the ministry, Sheikh Goni Musa, the taskforce is also expected to review all licenses issued for new refineries in Nigeria and at the same time assess their operational, technical, and financial readiness.

They will also design investment models with a road map to Nigeria’s self-sufficiency in local production of petroleum products. The timelines and milestones are expected to be ready for consideration within the next 60 working days.

Under its terms of reference, the task force will be expected to:
• Conduct a high level assessment of Port Harcourt, Warri and Kaduna refineries;
• Review all past reports and assessments and produce a diagnostic report complete with a change journey map;

• Review the operations of Port Harcourt, Warri and Kaduna refineries with a view to improving efficiency and commercial viability. The findings of this review would form part of the diagnostic report;
• Work with a world-class firm to audit the finances of Port Harcourt, Warri and Kaduna refineries and produce audited accounts for the companies over the past two years ending December 31, 2011;
• Design a template for key production/management-critical performance indicators to be tracked on a periodic basis for ministerial review;

• Design an automated information work bench, to monitor the performance of Port Harcourt, Warri and Kaduna refineries on an online basis; and
• Review all licenses issued for new refineries in Nigeria and assess their operational, technical, and financial readiness.

The panel will also seek new ideas and design financial models across the value chain for the building of adequate capacity to meet local demand for petroleum production, design a blueprint for public and private partnerships to build small, medium to large-scale Greenfield refineries across Nigeria, as well as investment models and a road map to self-sufficiency in local production of petroleum products in Nigeria.

Other members of the task force are Professor Ayo Ogunye, Mr. Imo Itsueli, M.B. Shehu, Olumuyiwa Ajibola, Dr. N.J.D Erinne, Alex Ogedengbe, Mallam Bello Maccido, Emeka Chikezie Ene, Mr. Stanley Lawson, Mr. Akin Kekere-Ekun, Mrs. Fatima Wali-Abdulrahman, Mallam Abba Dabo and Harcourt Adukeh.

It also has Mrs. Mayen Adetiba, President of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Babatunde Ogun, President of National Union of Petroleum and Natural Gas Workers (NUPENG), Comrade Achese Igwe, and representatives from the Nigerian National Petroleum Corporation (NNPC), Port Harcourt, Warri and Kaduna refineries, as members.
Goni stated that Alison-Madueke had set up the taskforce with a view to transforming the operations in Nigeria’s oil and gas sector.

“In furtherance of her commitment to reform and change the oil and gas industry for the benefit of the people of Nigeria, the Minister of Petroleum Resources, has set up a National Refineries Special Task Force to ensure self-sufficiency of petroleum products in Nigeria within a strong framework in the shortest possible time,” Goni explained.

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