Why We Suspended Investment In Refinery In Nigeria – Petrocam
Petrocam Nigeria Limited, an arm of Petroleum International, a South African based oil trading firm, is putting its intend to build refinery in Nigeria on hold because the environment is not profitable enough to guarantee it requisite return on investment.
Patrick Ilo, its Chief Executive Officer, who disclosed this in Lagos recently, said his company would only reconsider its suspension on the refinery project if the federal government deregulates the downstream subsector of the oil industry.
He added: “We at Petrocam Nigeria are presently not engaging in the building of refinery in the country. We are looking forward to a situation when the subsector would be fully deregulated since the industry is partially deregulated now.
“Deregulation is key to establishment of refineries in Nigeria because it would open up the space wider for operators wishing to invest in crude refining with a view to ending importation of petroleum products such as premium motor spirit (PMS), diesel and kerosene. What operators are advocating is a system, which would allow open entry and open exit and that can only be achieved when the subsector is fully and not partially deregulated as currently practised in Nigeria.”
Explaining the import of deregulation of the downstream sector, the company’s boss said the issue of allowing the federal government to fix the pump price of fuel at N145 per litre would be jettisoned once the policy is fully adopted, adding that marketers would be free to determine the cost of their products
The firm’s outlet, Ilo said, is increasing by the day, ditto the consumers of petroleum products in the country, adding that the development informed the decision of the company to continue to spread across the country.
He disclosed that his company opened its 10th retail outlet in Abule Ado, Lagos-Badagry Expressway, as part of its strategic plans in the country would leave a footprint in the retail and refining segments of the petroleum industry.
He said the supply of electricity is falling, adding that the development made Petrocam to build solar power to operate its outlets and also provide power to the communities where the stations are built, adding that the company is customer- driven , which among others are the firm’s selling points.
SOURCE: oglinks.news
