MORE facts have emerged over implementation inertia trailing the most ambitious
The Group Managaing Director, Nigerian National Petroleum Corpaoration (NNPC) told The Guardian in Uyo, Akwa Ibom state, at the weekend that the pull out of the major partners in the projects had actually affected the progress on construction.
However, he explained that the green field refineries are also on track, but the government is strategising to resolve some technical and financial issues surrounding the implementation.
He explained that the cost analysis of the projects have increased tremendously, thereby affecting the budget, hence the need for further review of the financial implications.
The estimated cost of all four projects was put at
Yakubu said: "The initial estimate is different from the one we have today. We are having a substitution derivation from what we saw and what we thought we will do. We are continuing negotiation on the refineries,"
Besides, he said
"You want to bring private players into the business, there is no private player that will put his money in a business without guarantee on returns. All the other players that are there today are either handling deregulated products or they are candidates for the
This factor has also affected the OKLNG, which was estimated to gulp about
Yakubu said the corporation is also carefully considering a going concept for the LNG projects and ensure that the "parameters are right before investing such huge amount of money on the projects".
"On the LNG, we still have the two projects on our drawing board, but when you are faced with challenges like that, it becomes difficult to take decision. There are so many conditions prior to Final Investment Decisions (FID), and nobody takes a decision on major investment like this, when the factors are not right. We have done the engineering design, the entire package is done, but since one of the major players,
"We were at the point of taking FID when they gave us the notice, so, we cannot just continue and ignore it. Where do you get the money from. When the cost is now over
"We have concluded the tender and in fact we were at the point of taking commercial decision, when this happened. Since last year when they pulled out, we have been discussing.
I don't want to lead the country into a 49 per cent of a multi-million dollar project that will eventually hit the brickwall," he said.
The project was envisaged to add 750,000 barrels per day of extra refining capacity to
Most Popular Stories
- Criminal Investigation Opened Into James Foley's Death
- The Hip New Career? Farming
- McDonald's Names Another U.S. President
- Student Startup Develops Date-rape Detector
- Sahara Casino Rises Anew as SLS Las Vegas
- Chinese Coal Gas Boom Poses Climate Risks
- U.S. Supporters of Islamic State Get Close Scrutiny
- Job Market Shifts Complicate Yellen's Rate Decision
- Dems Losing Fear of Obamacare
- Is Diversity in the Eye of the Beholder?