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‘NNPC selling products at a discount’ — Wale Tinubu on why refineries under-perform

Wale Tinubu, the chief executive officer of Oando Plc, says the nation’s refineries have not been repaired because the Nigerian National Petroleum Corporation (NNPC) does not have the cash to carry out repair works.

In an interview with Bloomberg, he said the company is looking to expand operations by increasing the number of its rigs and reopen oil fields.

“It’s not popular to increase petrol prices The reason we don’t have a country that is exporting petroleum products is subsidies,” he said.

“Our refineries were never repaired because they never had enough cash flow to fix them. That’s because they were always selling products at a discount.”

Tinubu said paying back the $2.5 billion debt owed to ConocoPhillips came at the expense of growth.

“We are focused on developing that side of our business, which is really to export Nigerian crude and brings in products wholesale,” he said.

“We have purchased enough reserves and our job should really be to exploit those reserves.”

At present, Oando has stakes in 14 oil exploration licenses and an estimated 450 million barrels of reserve.

In 2016, the company disposed of its stake in a gas distribution and power unit to Helios for $115.8 million in 2016.

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