……as NNPC opens discussions with investors……..,.
There are strong indications that petroleum products marketers are weighing the options of taking over the federal government equities in the nation’s four Refineries that have 445 barrels per day capacity.
The Group Managing Director (GMD), Nigeria National Petroleum Corporation ((NNPC) Engr. Mele Kyari said recently that Nigeria is holding talks to give up majority stakes in all four of its moribund oil refineries.
According to Kyari, discussions were taking place on an operating model in which the NNPC or the government would be a minority shareholder in the assets.
He explained that there will be more scrutiny of shareholders to ensure that the Refineries would become more efficient to operate. “That conversation is on the table” he said.
Though the NNPC boss did not specify how the government planned to transfer ownership, or to whom.
An official of Major Oil Marketers Association of Nigeria (MOMAN) said that an investment decision of that magnitude needs proper thought.
“Many of us are publicly quoted companies so shareholder approval would be necessary” he said
On the need for the marketers to take over these government stake to enable them go into backward integration for easy sourcing of petroleum products, they maintain that there is the need to know the actual state of the refineries.
“What is the current state of the refineries, how much would they be sold?” he said.
According him should such opportunity arise there would be the need to be careful in taking up such investment.
A source from Hyde Enetgy, an independent marketer said that they cannot have anything to do with government refinery as long as the government still have a stake in the asset.