Funds Meant for TAM of Nigeria’s Refineries Allegedly Diverted By Top Oil Industry Officials

Oil industry sources have made startling disclosures of how top industry officials ruined Nigeria’s four refineries by diverting huge funds earmarked for their routine comprehensive turnaround maintenance (TAM).

The four refineries located in Port Harcourt (two), Warri and Kaduna have a combined installed capacity to refine 445,000 barrels of crude per day, but have over the years performed abysmally owing to the obsolete state of the facilities.

Oil industry sources familiar with operations of the refineries, stated that contrary to repeated claims by the Nigerian National Petroleum Corporation (NNPC) that the refineries undergo routine TAM, the four refineries might not have undergone comprehensive repairs in the last 18 years or more as contracts awarded by successive governments were either abandoned halfway or not executed at all.

Whereas the NNPC disclosed last week that it spent $396.33million on TAM for the four refineries between 1998 and 2008, an oil industry source stated that the last two comprehensive TAMs of the refineries were in 1995 and 2000. According to checks, failures by successive governments to carry out routine TAM of the refineries have resulted in the colossal damage to their vital units.

Source: Energy Mix Report

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