Nigeria's refineries which are four in number will resume production by next month, a
spokesman for the state-run oil group said on Thursday, raising hope of an
end to perennial petrol shortages that have plagued Nigeria, Africa's largest
crude producer.
"The refineries at Warri, Port Harcourt and Kaduna
will resume next month after a successful turn-around-maintenance
(overhaul) of their facilities," Ohi Alegbe of the Nigerian National
Petroleum Corporation (NNPC) told AFP.
"The
turn-around-maintenance has been on for some time. We did not just want
to make any noise about it. The refineries will start production as soon
as they have delivery of crude oil for refining," he said.
The
NNPC has four refineries, two in Port Harcourt in the south, one in
northern Kaduna and another in southern Warri, with a combined installed
capacity of 445,000 barrels per day.
A network of pipelines and depots located throughout the country link these refineries.
Nigeria
produces a massive two million barrels of crude oil a day, but has to
export it due to a lack of working refineries. It then imports fuel back
into the country at international market prices, a situation blamed on
corruption and mismanagement.
To cushion the blow on the general
population, the government sells fuel on the streets at subsidised
prices, and makes up for the higher amounts spent by importers by
reimbursing them the difference, a system seen as rife with false claims
and overpayments.
Last month, a crippling fuel shortage almost
grounded Nigeria to a halt, as fuel importers and marketers shut their
depots to protest some $1 billion (900 million euros) in unpaid
reimbursements.
Black market and legitimate petrol vendors did a
brisk trade, selling at around 300 naira ($1.5; 1.3 euros) a litre --
well above the officially-set price of 87 naira.
In January 2012,
the government tried to end the subsidies, causing petrol prices to more
than double. It was ultimately forced to reinstate the payments after
tens of thousands of people took to the streets in violent protests that
left more than a dozen dead.
Alegbe said the resumption of refinery activity "will significantly improve the supply of petroleum products in the country."
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