Nigerian develops model to boost fuel supply

A NIGERIAN Petroleum
Engineer, Mr. Chinedu Onyeizu, has developed a three node policy and a
technology-based model aimed at addressing the challenges of fuel supply
 in Nigeria, by empowering Nigerians and the authorities with the
capacity to track supply across all the downstream petroleum sector
value chain.


Addressing newsmen in Abuja, Onyeizu, a graduate student of the
Massachusetts Institute of Technology, MIT, said the model will help
address Nigeria’s fuel challenges in one year.

He also said the model will empower the authorities to allocate and
monitor fuel supply across all the supply chain in real-time, using
sophisticated computer packages as well as enabling Nigerians to track
fuel supply from depots, through transport facilities to petrol
stations.  He said the three-node model focuses on leveraging the
existing Joint Venture, JV, and independent partnership agreements to
make refined products abundant and affordable to Nigerian consumers.

He said the strategy will require unbundling the downstream sector into
three strategic nodes, namely: Downstream-Upstream node,
Downstream-Midstream node and Downstream-Downstream node.

He said: “The Three-node model is policy based and its critical enablers
 include: locating new refineries at operational bases of producing
companies; collaborating with International oil companies and indigenous
 producers to operate the refineries while NNPC positions itself as a
non-operating partner with oversight functions.

“NNPC will provide 100 per cent funding for the construction of these
refineries; align with the producers to allocate a reasonable quota of
crude as constant feed to the refineries; leverage existing ship
berthing facilities in operational bases of producers to load refined
products. It will also work closely with the association of petroleum
products marketers to distribute efficiently; leverage existing tank
farms and fuel stations across the country to ensure products reach
consumers.”

Real-time monitoring

He added that the model has a technology application component,
‘Petrol-Solve 1.3’ that would help in capturing and transforming
in-context data into actionable insights.

He explained that the use of the technology will introduce real-time
monitoring of fuel volumes and for product distribution network
management from point of vessel loading to end-point filling stations.

He added: “We are also introducing a functionality that will enable
real-time prediction and management of related events by exception.”

Onyeizu further argued that the three-node model approach to solving the
 fuel crisis situation in Nigeria will leverage system and predictive
analytics to improve management of fuel product refining and
distribution across the country.

To this end, he expressed willingness to meet with President Muhammadu
Buhari and the Minister of State for Petroleum Resources, Mr. Ibe
Kachikwu, to provide extensive workflow models and design and also make
presentations on the workability of the 3-node approach.