The Federal Government on Wednesday vowed to revoke the licenses given to individuals and corporate organisations for the establishment of private refineries but were not utilised.
This disclosure was made by the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, while speaking on the sidelines of ongoing annual Offshore Technology Conference in Houston, U.S.
NAN quoted him as saying that he had had discussions with the Department of Petroleum Resources on the matter.
“I have spoken with DPR on the matter. Those who have not been able to move forward will have their licenses withdrawn,” he said.
DPR’s statutory functions included processing application for various licenses, permits and approvals across the oil and gas value chain.
Kachikwu said that the aim of giving licenses was to reduce the huge capital flight to fuel importation, meet local demand and look at possible exports.
The Federal Government under former President Olusegun Obasanjo had granted licenses to some private concerns to build refineries but only Alhaji Aliko Dangote had put it to use.
He said that his outlook for the year for the sector was to “have a robust relation with investors to increase production of crude to 2.5 million bpd and then to 3 million bpd”.
On incentives for modular refineries, he said, “Since they will be located in states, land will be provided and the modular refineries will be peopled around private sector, especially independent producers who already have the crude”.
He explained that investors would leave other countries to do business in Nigeria irrespective of seeming unstable business climate, because “Nigeria has the best returns on any investments in the World. The terrain is good’’.
“A lot of latitudes is given to investors to develop what works for them. Most of them know how to be resilient because they know the returns.
“Our resource base is huge. We have huge gas reserves, huge downstream opportunities.
“I don’t know of any country that has that much resource, that income generation. I think we can favourably compete with Saudi Arabia”.