The Minister of State for Petroleum Resources, Doctor Ibe Kachikwu has said that the four refineries belonging to the Federal Government may end up as scrap once the Dangote Group begins processing crude oil at its refinery in Lagos by 2019.
According to him, if the country fails to take urgent steps to revamp the refineries in Port Harcourt, Warri and Kaduna, the facilities may be worthless in three years’ time after the Dangote refinery must have come on stream.
Kachikwu, who spoke at a stakeholders’ consultative forum on the draft National Gas Policy and National Oil Policy in Abuja, stressed that Nigeria had no other option than to ensure that its refineries work in the shortest possible time.
Kachikwu urged stakeholders to work together in bringing down the cost of production in the industry to a reasonable and manageable level, noting that crude oil was still being produced at Twenty-seven Dollars per barrel in Nigeria.
This production cost, according to him, is high as no decent country will produce at that amount at a period when the oil price is unpredictable.