By Obinna Ezeobi, Abuja, Published: Tuesday, 6 Apr 2010
The Kaduna Refinery and Petrochemical Company will make a profit of N297m per day if all the units are operational and are able to perform at 90 per cent capacity, the Group Executive Director, Nigerian National Petroleum Corporation, Mr. Austin Oniwon has said.
A document obtained by our correspondent in Abuja on Monday quoted Oniwon as saying that the refinery was currently operating at 60 per cent capacity, but must improve its performance to 90 per cent capacity.
Underlying the necessity for improvement, Oniwon said the KRPC was losing N26.52k from each litre it refined, saying that would make the plant unprofitable.
He said, “The FCC is not on and the lube plant is not on. Every litre we process, KRPC is losing N26.52k. This situation is not sustainable. We cannot afford to lose N26.52k.
Running KRPC at 90 per cent, with all the plants running, everyday that we run at 90 per cents we make operations margin of N297m.”
On the strategies to make KPRC profitable, Oniwon said the refinery would be allowed to buy its own crude, process and sell to anybody who wants to buy.
He added that KRPC would also move from depending on one source of crude oil and would be free to sell refined products to anybody.
The GED further explained that NNPC needed to expand the refinery industry and could not do it alone.
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