Mohammed Shosanya
The Petroleum and Natural Gas Senior Staff Association of Nigeria,PENGASSAN says the proposed tax reform bills will stifle explorative activities in the country’s oil and gas sector.
It also said that Nigeria Upstream Regulatory Commission (NUPRC) and the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA) would be negatively impacted if the bill sails through.
President of PENGASSAN,Festus Osifo spoke while addressing members of the National Executive Council (NEC) on Tuesday in Abuja.
He said:”The Association notes the ongoing tax reforms and wish to demand that the tax relief exemptions that is given to those earning minimum wage and business should be expanded to accommodate more people and companies in that category.
“Clarity must be provided regarding revenue collection processes from oil and gas companies as some provisions in the bill have the likelihood of negatively impacting our members in some of our major branches like Nigeria Upstream Regulatory Commission (NUPRC) and the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA).
“We shall be participating actively in the public hearing where our position will be well articulated. We hereby call on the National Assembly to conduct a proper public hearing session where different views will be collated to amend the provisions in the bill and not just to tick the box”.
Meanwhile,Osifo confirmed the functionality of the Port Harcourt Refinery, insisting that PENGASSAN members were part of the team that ensured it came on stream this time around.
His reaction follows insinuations that the refinery had gone comatose again, a few days after its much-celebrated commencement of production.
Osifo,who doubles as President of the Trade Union Congress(TUC) revealed that the management of Nigeria National Petroleum Corporation Limited (NNPCL) pulled the feat because there was a dedicated Escrol account for the revival of the refinery, as against the previous system where funds were domiciled in the Central Bank of Nigeria (CBN).
He,however,gave a few limitations in the production processes which he said may have forced the refinery to slow down operations.
According to him,the blending process was normal globally, as no refinery can produce with a single Crude Distillation Unit (CDU), noting that the coming on stream of Warri and Kaduna refineries would bring the much needed relief to the country.
He said Nigerians,including the media had every reason to doubt and question the government,considering what they had suffered at the hands of past governments.
He added:”Nigerians, we have every reason to doubt the government. We have every reason to question assertions from governments because over the years, they have actually let us down.
Explaining the production processes in the refinery, he said, “Really, from our checks, the Port Harcourt refinery is actually working.
“But let me explain this. In petroleum product production, you take the crude and you pass the crude into what they call the CDU (Crude Distillation Unit).So, it is actually that unit that is going to bring different products. That unit today, as we speak, is working.
“When you pass the crude into CDU, it is going to give you what we call Kerosene (DPK), it is going to give you what we call ATK (Aviation fuel), and it’s going to give you DPO (Diesel).
“It’s also going to give you naphtha. That is that distillation unit. That unit is working.What that means is that when you pass crude into that unit, you will have these products, but the old Port Harcourt refinery was not designed to produce aviation fuel.
“So, you are going to have these three principal products: the Naphtha, the AGO, as well as the DPK. So normally, that Naphtha, you are going to pass it to this unit called the Reformat Unit.As we speak today, that reformat unit is not actually working. We must disclose this to Nigerians.
“What is now happening at the moment is that you are going to take that Naphtha and merge it with Crack-C5. It will now be blended with Naphtha, and some other processes take place, and now it gives us PMS.
“What Nigerians should be interested in today is that: is the Port Harcourt refinery producing AGO? The answer is yes. Is the old Port Harcourt refinery producing kerosene? The answer is yes. Is it producing PMS today? The answer is yes.
“We should reduce the concentration on what the processes are but look at the products that come out.”
He added: “There is no refinery in the world that has a CDU that produces PMS in a single tranche. No one produces PMS, even Dangote Refinery.
“Their CDU doesn’t just produce PMS. But there is a product that comes out that is close to PMS. The requirement and the specification – what we call the Octane number in PMS – is very high.
“You have to produce it to spec or it damages vehicles. That Naphtha is further treated, and treating that Naphtha using the Crack-C4 from Indorama is what they now call blending.
“But in all honesty, the refinery is working, and these products are all there and coming out.We must congratulate NNPCL for the rehabilitation and successful startup of the old Port Harcourt refinery.
“Over the years, PENGASSAN has been at the forefront for demanding that these refineries must be rehabilitated and brought back to operations. This we will not stop until the remaining three refineries are successfully rehabilitated and resume operations. Afterwards, we will mount a vanguard for the refineries to be privatized using the NLNG model that has worked efficiently over the year”.
