2 Modular refineries ready for take off, 10 in Advanced stage

by Tony Ailemen, Abuja

December 30, 2017 | 5:32 pm
  |     |     |   Start Conversation

Baring last minute hitches, there are indications that two out of the 38 licensed privately financed greenfield and mini-modular refineries will soon come on stream

This is just as another ten (10) of such licensed refineries investors have reached  an advanced stage of development, with a total proposed refining capacities of 300,000 barrels.

The ten modular refineries are to be located in five out of the nine states in the Niger Delta region; namely Akwa Ibom, Cross River, Delta, Edo and Imo states.
The refineries were part of those projected to help ease the nation’s fuel supply aimed at making Nigeria self sufficient in meeting local demands for Petroleum products.
The two  refineries include Amakpe  in Akwa Ibom, and OPAC Refinery to be based in Delta State – have their mini-refineries modules already fabricated, assembled and containerized overseas, ready for shipment to Nigeria for installation.

The construction of the refineries follows three stages in the process of  establishment, which include getting the Licence to Establish (LTE), Authority to Construct (ATC) and Licence to Operate (LTO).

Vice President Yemi Osinbajo while speaking on the issue with leaders of the Pan Niger Delta Development Forum, ( PANDEF) , said the Buhari administration is committed to promoting the establishment of privately financed modular refineries so as to increase local refining capacity, create jobs, ensure peace and stability in the Niger delta region,

Government see the projects as strong initiatives to reposition the petroleum industry and ensure self-sufficiency of petroleum products, while also serving as a disincentive for illegal refineries and oil pollution.

BusinessDay gathered that at one of such end-of-the-year review meeting of the Niger Delta Inter-Ministerial Committee at the Presidential Villa, Abuja, before the holidays, Osinbajo had noted that the Federal Government, in line with its Niger Delta New Vision, is targeting measurable objectives in its efforts towards implementing development projects in the region.

The advanced stage of development means that these projects have passed the Licence to Establish (LTE) stage, while some have the Authority to Construct (ATC) licence or close to having it because they have met some critical requirements in the Licensed stage.

Following what investors have described as initial high cost of establishing these refineries, Vice President Osinbajo directed the Federal Ministry of Petroleum Resources to keep providing the necessary support and creating the enabling environment for positive investments in modular refineries by engaging key government agencies.

The directive is to ensure that the  issue of funding which is a major challenge to most of the investors, does not further with hold progress of the refinery projects

Osinbajo directed agencies including the Niger Delta Development Commission, NDDC, Nigerian Content Development & Monitoring Board, NCDMB, and financial institutions, including the International Finance Corporation, African Export-Import Bank (Afreximbank), Nigerian Sovereign Investment Authority, Bank of Industry, to strongly support funding of the refineries

Osibanjo stressed the importance of ensuring that the oil communities have a stake in the modular refineries and directed that an appropriate model be developed to achieve that.

Other issues addressed at the end of the year meeting include the Maritime University, Ogoni Clean-up, and other related issues such as increasing support for Small and Medium-sized Enterprises (SMEs) in the region.

The Vice President while also nothing that the stability of the oil sector remains a priority to the current administration, said more supports will be given for the smooth operation of Maritime University take-off.

On the Ogoni clean-up, the Project Coordinator for the Hydrocarbon Pollution Remediation Project, (HYPREP),  Marvin Dekil briefed the meeting that progress has been made in several areas of the clean-up.

He listed the evaluation of existing water facilities in the four local government areas in Ogoni land in the process of providing clean drinking water, demonstration of remediation technologies at sites in some of the impacted communities; hiring of and the technical training of Ogoni scientists. The Coordinator added that health impact assessment would be conducted in some communities in the coming weeks.


Tony Ailemen, Abuja

by Tony Ailemen, Abuja

December 30, 2017 | 5:32 pm
  |     |     |   Start Conversation

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