Nigeria's four refineries will
resume production next month, a spokesman for the state-run oil group
said Thursday, raising hope of an end to perennial petrol shortages that
have plagued 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."
