Global Processing

Nigeria Considers Shipping Crude to Refineries

January 25, 2010
According to the Associated Foreign Press, after years of attacks on pipelines by armed militants in southern Niger Delta, Nigeria is considering plans to use light vessels to supply crude oil to its dormant refineries. Reginald Stanley, managing director of the Pipelines and Products Marketing Company (PPMC) said in a radio program, the nation''s two key refineries in Warri (south) and Kaduna (north) had remained "idle" since the trunk supplying them crude was attacked by militants in May last year. The two refineries accounted for about half of the nation''s total refining capacity of 445,000 barrels per day. He said that PPMC engineers have in the past two years repaired more than 500 leaks -- mostly caused by militants -- on two southern oil trunklines. Nigeria, the world''s eighth oil exporter, has been importing most of its refined petroleum products for more than a decade to meet local demand due to the under-performance of its four refineries. Attacks by Niger Delta militants, especially since 2006, have added largely to the woes of the country, forcing it to import about 70 percent of its needed refined petrol. The country has also in the past two months been facing constant fuel scarcity, mainly due to non-payment of arrears of subsidies to importers.