Two modular refineries to start operation in Niger Delta soon—FG

The Federal government said plans are underway to unveil the first modular refineries with 10,000bpd and 7,000bpd in Rivers and Delta states respectively by November and December this year. Mr. Edobor Iyamu, Senior Special Assistant on Niger Delta Matters to  President Mohammadu Buhari made this known in Uyo  during a Workshop for Journalists and Civil Society Organisation(CSOs) organised by Niger Delta New Vision from the Presidency.

He said no fewer than two modular refineries will be inaugurated in November 2018 adding that the Niger Delta Petroleum Resources in Ogbele, Rivers state has already pioneered 1,000bpd. According to him :”Civil works and installations of refinery equipment are on going at Niger Delta Petroleum Resources  and an  establishment of additional 10,000bpd Modular Refinery in Ogbele, Rivers State.The company already has a pioneer 1,000 bpd mini refinery on the same site which has been in operation since 2010. Expected commissioning date of the new refinery is early November.

“Also, civil works, construction and equipment installations are ongoing  at OPAC refineries to establish 7,000bpd refining in Umuseti-Kwale, Delta State (phase one) with expected commissioning date of December 2018. There are Plans to also upgrade the project in two more phases to 21,000 bpsd within one year after commissioning the first phase depending on crude availability with another plan for groundbreaking for  WalterSmith (Petroman) on the 4^th of October that will establish  a 5,000 bpd refinery in Ibigwe, Ohaji, Imo State,” he said.

Speaking further, he said the Federal government envisages amongst others, a model that will be private-sector led partnership from state government, its agencies and other stakeholders and investors. According to him “Federal government envisages amongst others, a model that will be private-sector led partnership with equity participation from state governments or their agencies, registered local cooperative societies and the integration of the regional refinery stakeholders, with the private investor having majority equity as well as operate a Joint Venture.

“State Government contribution could be in the form of land-for-equity and or paid off shares. Participation of credible investors and integration of key stakeholders in the modular Refinery initiative is also key ,’ he stated. He also warned that the intentions of the Federal government was not to encourage or legalise illegal refiners through such opportunities, rather it was to discourage such nefarious practice. “It is not the intention of Federal Government to legalise the illegal refiners.But as a way to encourage investors  MPR engaged Federal Ministry of Finance and secured Presidential approval for Incentives on customs duty waiver/rebate on imported modular refinery equipment/components; contained in the recently approved Fiscal Policy Measures for 2018 consisting National list of items with reduced import duty rates. It is expected that this will encourage investments in the sector, “he revealed.