NNPC’s Chief Operating Officer (COO), Refineries, Mustapha Yakubu, said investors were yet to conclude with the corporation on the procurement of feedstock for the refineries.
Speaking as a panelist at the ongoing Nigerian Oil and Gas (NOG) conference in Abuja on Wednesday, Mustaphasaid ordinarily crude oil is sold in foreign currency, but owing to the volatility of foreign exchange, NNPC has arranged to sell crude to private refineries in naira.
He said: “Today, they have a challenge. Some of them constructed refineries today they cannot start because we are discussing how to allocate crude to them.
“We are asking them to pay in foreign exchange. You know what is happening to foreign exchange: volatility. So, we have to find a common ground so there is a discussion in that regard to allow them pay in local currency.”
Earlier, the COO noted that NNPC was collaborating with the private investors to encourage them.
He said the partnership has become necessary because it is possible for the investors to build refineries without having feedstock: crude or condensate to refine.
Mustapha said: “Whatever they do, they have to work within certain regulations. Refineries are not bakeries. I can go to Wuse Market and buy flours. But for those refineries, you need feedstock whether crude or condensate.’’
“This crude belongs to the government so there is a need for collaboration. We need to support them. Because you can build refinery and there is no crude. What happens? The partners will be running after them.
“Government needs to make money from this crude oil. A lot of sectors need money. The health sector needs money. There should be that assurance if I give you crude you have to pay for it and you need to also deliver the balance.
“ The investors that are building refineries today we have to collaborate that is the way we can encourage them.”
