The Ondo State government has partnered with a firm, Crown Refinery and Petrochemical Limited, to establish a modular refinery in the coastal area of the state.
According to the PUNCH, the state would reportedly provide only the land while the company will provide the equipment and the personnel, some of whom would be employed from the state.
The proposed initial design capacity of the modular refinery is about 30,000 barrels per stream day, which is expected to be completed within 36 months. This can be scaled to 60,000 bpsd, the Chief Executive Officer, Crown Refinery and Petrochemical, Mr Kassim Adeleke, stated.
Giving more details to journalists about the project, Adeleke, who led the team to the governor’s office, said $500m would be spent at the initial stage, saying the money would be sourced from the development partners of the company.
Recently, the state government and the company signed a Memorandum of Understanding on the multimillion-dollar project proposed to be sited in Ugbonla and Ogboti coastal towns in the Ilaje Local Government Area of the state.
It was learnt that the project would foster the development of the area and consequently boost the economy of the state, as it was projected to employ over 2,000 people, both directly and indirectly.
This is in line with the Niger Delta New Vision of the Buhari administration for the establishment of modular refineries in the region to spur development and provide more employment opportunities for youths in the region.
The PUNCH reports that the Ondo State Governor, Mr Rotimi Akeredolu, while receiving the MoU from the Secretary to the State Government, Mr Sunday Abegunde, who had earlier signed the document with the representatives of the company, expressed delight over the development and pledged the support for the project.
He said, “Ondo State is safe for investors; we will do everything to ensure that this project is successful. Ondo State is strategically positioned among the Niger Delta States and Lagos State, which is the nation’s economic nerve centre, to make all business-minded investors reap bountifully from their investments in the state.”
Earlier, the Chief Executive Officer, Crown Refinery and Petrochemical, who led the team to the governor’s office, Mr Kassim Adeleke, said the company’s core business is to refine crude oil into petroleum products.
He explained that the refinery would be designed to process both imported paraffin and Nigerian crude into petroleum products, oils and lubricants.
Adeleke said, “We are going into the business of refining crude oil. The government of Ondo State would provide the enabling environment and incentives to support us as we actualise this vital investment. Apart from the project having the capacity to refine crude oil, it will also be producing 120,000 tonnes of base oil and 25,000 tonnes of lubrication oil on a yearly basis.
“The company will also be providing several infrastructural projects in the states and would create about 2,000 direct and indirect employment opportunities for indigenes of the state. It would also give scholarship to indigent students in the host communities.”
He said in Ondo State, he found professionalism, swift decision making, friendly communities and passion, such that in less than one year of opening talks with the state government, the company was set to commence the project.
In line with the Niger Delta New Vision plan of the Federal Government, four modular refineries, which are at different stages of completion, have so far been established in the region. They include: the NDPR Modular Refinery, Ogbele, Rivers State; OPAC Modular Refinery, Delta State; Ikwe-Onna modular refinery, Akwa-Ibom State; and the Walter Smith refinery, in Imo State.