The Bureau of Public Enterprise (BPE) on Friday announced the approval by the President of the privatisation of the nation’s four refineries. The press release signed by the Head of Public Communications of BPE, Mr Chigbo Anichebe quotes the President as saying that privatisation of the refineries was in keeping with the economic reform programme of his administration.
The four refineries are Kaduna Refining and Petrochemical Company Ltd. (KRPC), Port Harcourt Refining Company Ltd. (PHRC) I, Port Harcourt Refining Company Ltd. (PHRC) II and Warri Refining and Petrochemical Company Ltd. (WRPC).
In the same statement, Mr Chigbo Anichebe stated that the president also approved the constitution of a Steering Committee consisting of stakeholders from relevant ministries and agencies for the privatisation process. He explained that the Steering Committee will advise the National Council on Privatisation (NCP), headed by Vice President, Namadi Sambo, on the “best way” to privatise the refineries.
The entire press release is captured below:
Bureau of Public Enterprises
The Secretariat ofNational Council on Privatisation
11, Osun Crescent, Off Ibrahim Babangida Way
Maitama District, P.M.B 442, Garki, Abuja, Nigeria
Telefax (234-9) 4138861
Web Site: http://www.bpeng.org
In furtherance of the economic reform programme of his administration, President Goodluck Jonathan has approved the commencement of the privatization of the nation’s four refineries by the Bureau of Public Enterprises (BPE). This is in keeping with the Transformation Agenda, which seeks to catalyze and provide an enabling environment for the private sector to be the drivers of economic growth in the country.
The four refineries are:
1. Port Harcourt Refining Company Limited (PHRC) I ;
2. Port Harcourt Refining Company Limited (PHRC) II;
3. Kaduna Refining & Petrochemical Company Limited (KRPC) ; and
4. Warri Refining & Petrochemical Company Limited (WRPC)
The President has also approved the constitution of a Steering Committee on the privatization process that involves all relevant stakeholder ministries and agencies.
The Steering Committee which is chaired by the Honorable Minister of Petroleum Resources has the following members:
1) Hon. Minister of Finance/CME Member
2) Hon. Minister of Power Member
3) Hon. Minister of Labour Member
4) Hon. Minister of National Planning Member
5) Hon. Minister of Mines and Steel Development Member
6) Hon. Minister of Justice/AGF Member
7) Chairman of the Extractive Sub Committee of the NCP Member
8) SA to the Vice President on Economy Member
9) Group Managing Director of NNPC Member
10) Director General of BPE Member
11) Group Executive Director (Refineries), NNPC Member
12) MDs of Refineries Scheduled for Privatization Members
13) Director (Oil and Gas), BPE Secretary
The Steering Committee’s Terms of Reference will include among others the following:
(1) Advise the National Council on Privatisation (NCP) on the best way to privatize the refineries in a manner that would enhance the gains of the privatization programme of the FGN;
(2) Review the diagnostic reports and recommendations of the transaction advisors and make recommendations to the NCP;
(3) Propose modalities and make recommendations to NCP on labour matters to ensure the successful privatization of the refineries;
(4) Generally oversee the process and make recommendations to NCP for the successful privatization of the refineries; and
(5) Carry out any other ancillary activities relevant to the attainment of the goals of the Federal Government in the reforms and privatization of the nation’s refineries.
According to the Director General of the BPE, Mr. Benjamin Dikki, “the directives we have is to conduct the privatization process transparently, complying with due process and international best practice. We are expected to improve on the high standards set in the power sector transaction, which has received accolades all over the world as being very transparent.”
He added that further details on the transaction structure and time table will be announced after the meeting of the Steering Committee.
Head, Public Communications
December 20, 2013