NNPC to shut down oil refineries ahead of upgrade


The Nigerian National Petroleum Corporation (NNPC) Wednesday, said it has decided to shut down all its oil refineries as it works to secure funding and a model to upgrade them.

Mele Kyari, Group Managing Director of the Corporation, said the decision was reached after consultations and research.

“Today, after proper scoping, which was not done in the past, we know exactly what to do to get them back on stream,”  Kyari said.

Nigeria has just three functioning refineries.

In statements posted on Twitter, Kyari said the oil industry will look to cut costs and extend payments wherever possible to survive oil prices that hit 18-year lows late last month.

He revealed that NNPC was pursuing “a different model” for the refineries, including the type used by Nigeria LNG, which is run by international companies such as Shell, Total and Eni alongside NNPC.

The GMD also expressed optimism that a meeting this week between OPEC and other producers could yield a fresh deal to shore up oil prices. The group is due to hold a video conference on Thursday at 1400 GMT.

“We believe the ongoing engagements between global oil producers will bring back demand and once that happens, the market will balance and fully recover by year-end,” he said.

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