The Group Managing Director, Nigerian National Petroleum Corporation, Mr. Abubakar Yar’Adua, said on Monday, that the Kaduna Refinery and Petrochemical Company would resume production this week.


Acting Group Managing Director, NNPC, Engr. Abubakar Yar’Adua

Speaking in Abuja at the opening ceremony of the Chief Officers management development programme, batches 048, 049 and 040, Yar’Adua, who was represented by the Group Executive Director, Corporate Services, NNPC, Mr. Ibrahim Waziri, said crude oil had been delivered to the refinery.

The GMD had indicated at the inauguration of the Warri Refinery and Petrochemical Company on February 6, that crude oil had got to Izom, after Suleja, Niger State and would reach Kaduna Refinery soonest.
He had said, “I will give Kaduna another two weeks so that it will build stock. By the 28th of this month, Kaduna will be on and ready.”

The Kaduna and Warri refineries were operational before the Channomi pipelines, which supplies crude oil to the two were vandalised in February 2006, and for one year, the host communities refused to allow government officials or any contractor access to the pipelines.

Yar’ Adua explained that the hurdle was eventually crossed in early 2007 through an expatriate company, Zachem International, which won the contract to repair some sections of the pipeline at the cost of $13m.
But after carrying out the first round of repairs, the communities fell out with Zachem and again, the locals blocked access to the pipelines.

The GMD had explained that after he was appointed, Zachem made another proposal to repair the outstanding parts of the Channomi crude pipeline for $107m, but he decided to deal directly with the community and encouraged them to put forward a company owned by the indigenes to carry out the work.
He added that a company from the community agreed to do the job in four months for $50m, but he convinced the firm to do it within three months and get a bonus, which they achieved.

Following the success of the repair, Yar’ Adua said he was encouraged to give the community the contract of securing the pipelines and in return, they will get several community based projects.
“The President approved $7.5m and we did several projects. The projects are very good. I believe we are going to make new commitment this year, may be build schools, clinics, or any other project.”
He also explained that the President had also given approval for Turn Around Maintenance on Kaduna Refinery.

He added, “Once approval is given, you give three months for mobilisation by the contractor. I want to use these three months to run Kaduna Refinery, so that we can build stock. After that I hand over the plant for TAM, which will last 45 days. All the materials for TAM are now 100 per cent on ground at Kaduna warehouse. We would make sure that Kaduna TAM does not take more the normal 45 days.”

Speaking on Organisational Restructuring and Renewal as a Strategy for improved business performance at the event, the Country Chairman, Shell Nigeria, Mr. Basil Omiyi, said managers of organisations must design it in such a way that it would be attractive to the best graduates in the country. He added that well managed companies must provide incentive for the retention for their best staff as a means of ensuring that the company’s progress was sustainable.

He said that restructuring in a company may either be smooth or rancorous depending on how well the management engages the staff on the change.