Petroleum Minister Timipre Sylva was cited by Agence France-Presse (AFP) as saying that Italian firm Maire Tecnimont has already been selected by the government to undertake the repair work at the Port Harcourt refinery, which has a refining capacity of about 210,000bpd.
Due to the lack of domestic refining capacity, the country relies on imported petroleum products despite being Africa’s top oil producer, reported AFP.
Crude oil almost always needs to be processed (refined) prior to consumption. The process of refining separates crude oil into useable finished products for transportation, residential and commercial heating, power generation, petrochemical production and asphalt formation. It is refining that gives oil its value to end-customers. Marketing refers simply to the distribution and sale of refined products, from bulk distribution to retailing. Integrated oil companies tend to report refining and marketing earnings together.
The refining industry is a global, highly cyclical commodity business in which profitability is sensitive to marginal changes in product supply or demand. Marketing, on the other hand, is more regional in nature, and earnings are more stable. The volatility of refining and marketing, or ‘downstream’ earnings, arises primarily because of the cyclicality of refining margins.
Limult Group provide a refinery project management service, providing our clients with expert consultation on refinery construction projects and new proposals, oil refinery plant optimization and the development of new strategies for the marketing of crude oil products.
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