The Nigerian National Petroleum Corporation, NNPC, has shut down the Warri Refineries due to operational challenges.
Group General Manager, Group Public Affairs Division of the NNPC, Ohi Alegbe, who disclosed this, noted, however, that the refinery is expected to be reopened for operations on Tuesday.
According to him, the decision to shut down the Warri refinery was taken because there was insufficient crude oil in the system.
“They are supposed to have at least a 25-day sufficiency in the supply of crude. So because of the depletion in the volume of crude they have had to temporarily shut down.
“It was shut down on Monday. This is a temporary measure and it should be up and running by Tuesday.”
It would be recalled the Shell Petroleum Development Company, SPDC JV has declared force majeure on Bonny Light exports effective August 27, 2015, following the shutdown of both the Trans Niger Pipeline (TNP) and Nembe Creek Trunkline (NCTL).
The NNPC, had a few days ago, stated that after proper evaluation and in line with the terms of contract for the delivery of crude oil to the nation’s refineries in Warri, Port Harcourt and Kaduna, the Corporation has cancelled the current contract due to exorbitant cost and inappropriate process of engagement.
The NNPC had stated that this measure is aimed at reducing cost and strengthening the operational efficiency across its value chain.
As a stop-gap measure, the NNPC said it has engaged NIDAS Marine Limited, a subsidiary of the NNPC, to provide crude delivery service on negotiated industry standard rate pending the establishment of substantive contract.
The NNPC, however, explained that it resorted to the delivery of crude oil to the refineries by marine vessels following incessant attacks on the Bonny-Port Harcourt refinery pipeline and the Escravos crude pipelines by vandals and oil thieves resulting in the complete unavailability of the …Read More
Source:: New Mail
