Multinational down stream operator, Total Nigeria Plc disclosed that the combined effect of Niger Delta crises, low return on investment, global economic meltdown and Nigeria’s economic environment as factors which make investment in building of refineries unattractive for the company.
Managing Director of Total Nigeria Plc, Mr. Dominique Thiolon explained during a media chat recently that building refineries is not a tea party and that such a venture requires proper planning.
“Refining business is a long-term business and return in this kind of investment is quite low. And unfortunately, today, I must say that the economic environment, not only in Nigeria, but also in the world – with this international crisis and also the environment in Nigeria; with the unrest situation in the East (Niger Delta), it is not profitable to take this kind of decision.”
Total is one of Europe’s top rate refiner and marketer owning 13 refineries which it operates directly. Total Nigeria Plc’s parent company, Total SA of France, also has about 16,700 service stations, mainly in Europe and Africa through which it distributes motor fuels, lubricants and Liquefied Petroleum Gas (LPG), otherwise called cooking gas.
About 500 of the 16,700 retail outlets are in Nigeria. It also has five Liquefied Petroleum Gas bottling plants, three lubricant blending plants and four aviation depots.