Conoil Nigeria Plc, is planning to spend about N400m to upgrade facilities and equipment inherited from former National Oil.
Disclosing this recentl, Managing Director, Mr, John Basikaran, told visiting committee from the House of Representatives,that the company is the downstream marketing arm of Conoil group, adding that the facility upgrade has scaled the approval of the board of the publicly quoted company.
According tom him, the company will in the facility upgrade program not only rehabilitate and upgrade old inherited facility, it would acquire new ones to boost its throughput capacity in servicing the domestic market in a safe and environmentally friendly manner.
He told the lawmakers that the management and board of the company considered it necessary to shore up the integrity rating of the company’s facilities depot facilities after some 50 years of operation to meet the increasing demand in the domestic fuel market and exceed the expectation of her customers.
According to Mr. Basikaran, plans were also on to immediately auction off empty drums used by the progenitors of the company in packaging products as part of the company’s efforts to decongest the premises and create space for health, safety and environment standards.
He told the law makers that facility upgrade and turn around in the company was a huge project for the company given its size and dominance of specific niches in the domestic retail and fuel services market.
He pointed out that the company was the biggest service provider in the aviation industry with over 35 percent of the national market share and solid presence in Kano, Abuja, Kano, Warri, Ibadan and Maidugri.
On the company’s safety and environmental integrity, Mr. Basikaran said the company has commissioned a safety audit on its facilities with the approval of the Department of Petroleum Resources (DPR) the Ministry of Environment to guide the company on best standards to adopt.
He explained that the environmental audit would turn up product of studies on the integrity profile of all installations in the company’s operational facilities and equipment.
According to him, the audit was not to initial health, safety and environment measures, but to launch the company miles ahead of the expectations as more challenges evolve with urbanization and encroachment of oil installations in Lagos area.
Mr. Basikaran maintained that Conoil had always met all existing requirements on health, safety and environment; having installed facilities that afford the company unlimited source of water, foam, hoses et cetera for fire fighting.
He also pointed out to the legislators that all the company’s loading gantries were installed with water and foam sprinklers for immediate response to unlikely fire incidents.
On the contributions of Conoil in assiting government meet the fuel requirement of the domestic economy, Mr. Basikaran said the company was also upgrading its Lagos throughput capacity from existing 75 metric tones of products to 100 metric tones while a similar capacity was being planned for development in Port Harcourt.