An apparent inter-ministerial rivalry is threatening to derail a move to establish six new refineries that would help reduce fuel importation in the country, Daily Trust has learnt.The Ministry of Trade and Investment had last July signed a Memorandum of Understanding with two firms'one American and one Nigerian'to construct six modular refineries with a combined capacity of refining 180,000 barrels of crude oil per day.The project is estimated to gulp $4.5 billion (about N697.5 billion) and the first two of the refineries are expected to be completed within 12 months.However, a disagreement between the trade ministry, on one hand, and the Ministry of Petroleum Resources and Nigerian National Petroleum Corporation (NNPC), on the other, is threatening to cripple the project.They are giving conflicting accounts of their involvement, or non-involvement, in the project, even as their individual actions further reinforce the dispute.{loadposition user30}Daily Trust learnt that while the trade ministry has failed to get both the petroleum ministry and the NNPC fully involved in the deal from the onset, the NNPC is showing lukewarm attitude towards the project even after receiving an official notification about it.When the MOU was signed in July between the Minister of Trade and Investment Olusegun Aganga and the two firms, the US-based Vulcan Petroleum Resources Limited (PRSR Ltd) and Abuja-based Petroleum Refining and Strategic Reserve Limited, none of the NNPC's top management staff was there.During the signing ceremony the minister did say that his ministry would work with the Ministry of Petroleum Resources and the NNPC to ensure the actualization of the project.Mr Aganga signed on behalf of the Federal Government while the Vice-President of Vulcan Petroleum Resources Limited Jim Mansfield and the Chairman of Petroleum Refining and Strategic Reserve Limited Chief Edozie Njoku signed on behalf of their respective companies.The NNPC, which controls the petroleum assets in the country, was not represented at the signing ceremony; and it later claimed ignorance about the project.When contacted by Daily Trust on the issue, the Acting Group General Manager (Group Public Affairs) of the corporation, Mr Fidel Pepple, said he cannot say much because the 'NNPC is not involved in that project.'However, Daily Trust learnt that the Trade and Investment Ministry did write a letter to the corporation informing them of the project.The ministry, in the letter, dated 12 April 2012, with the Reference No: PSTI/GEN/2012/294/Vol 1, introduced the firms, particularly the American partner, Vulcan Petroleum Resources, to the NNPC.The ministry informed NNPC of the request of the American company to sign a Memorandum of Understanding with the government for the construction of the six modular refineries in partnership with the Nigerian firm (Petroleum Refining and Strategic Reserve Limited).It was gathered that the NNPC did send a response to the trade ministry's letter, indicating its willingness to cooperate in the arrangement.The letter, dated 11 June 2012, with Reference No: BD/GMD/06.12 and signed by Aminu Baba-Kusa, on behalf of the then Group Managing Director, NNPC, Mr. Austin Oniwon, commented 'on the feasibility of the venture and a confirmation for the guarantee of crude oil supply to the proposed refineries'.It said the 'establishment of modular refineries is practicable and is desirable to increase local refining capacity'.The letter further assured that the corporation will 'make utmost endeavour to ensure crude oil supply to the planned six modular refineries.'However, it said, the crude supply will be 'subject to availability and location of the refineries'.When contacted on the said letter, a source at the NNPC, who pleaded for anonymity, said the letter was the only correspondence they received from the trade ministry on the refinery deal.'The NNPC management expected the ministry to get back to them for detailed discussion after that letter but they did not, only for us to hear about the MoU signing,' the source said.Some sources said the misunderstanding was a result of communication gap while others said it emanated from an apparent power play between the two sides.
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