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FG to hold National Summit on Modular Refineries – Ita Enang

A national summit on the integration of Artisanal/Modular Petroleum refinery operations in the country will hold next week in Abuja.

This was disclosed at a news conference on Tuesday in Abuja by the Senior Special Assistant (SSA) to the President on Niger Delta Affairs, Sen. Ita Enang.

The summit, which is being organised by the Office of the (SSA) Presidency in collaboration with the Federal Ministry of Finance, Budget, and National Planning, is scheduled to hold on March 16 and 17 at the Sheraton Hotel and Towers, Abuja.

According to the organisers, the main objectives of the summit include to provide a platform for key stakeholders in government, Organised Private sector and development partners for drafting an acceptable template for the operations of local artisinal/modular refining activities in Nigeria.

It also noted that the summit will help highlight “current technologies in modular refineries by local and international fabricators and research institutions, while identifying and documenting Nigeria’s potential in the fabrication of components for modular refineries.

Enang noted that the conference would help to improve the production of refined petroleum products in the country, thereby reducing their prices to Nigerians.

According to the News Agency of Nigeria (NAN), He also said that the urgency of holding the conference was because the National Assembly had promised to pass the Petroleum Industry Bill (PIB) by April.

“Most of the issues that will be addressed at the conference are such issues that will require legislation, so any agreement that will be reached which requires legislature will be accommodated in the Petroleum Industry Bill (PIB),” he said.

Enang, who said that the conference would help to protect the environment, emphasised that the summit was not for the purpose of legitimising illegal refining operations, but integrating the operators into the legitimate modular refining process.

According to him, this will stop all illegalities and create more employment for Nigerians.

He added that the summit will address issues such as the need for the localisation and advancement of home-grown technology in the production of petroluem products, as well as stopping illegal oil activities and mainstreaming artisanal petroleum refiners in the Niger Delta into the national economy.

According to him, the summit will also address the provision of employment opportunities for Niger Delta youths and Nigeria in general, and x-ray post-petroleum deregulation era and its challenges to the petroleum refining sector.

“It will also highlight the economic benefit of the sector, especially in strengthening the Naira, conserving foreign exchange and reducing the prices of petroleum products in the short- and long-term.”

How modular refineries can create over 100,000 indirect jobs – Wabote, NCDMB

*Adds: Modular refineries should refine at least 10% of Nigeria’s oil production

At least 10 per cent of Nigeria’s oil production should be refined through modular refineries as it has the capacity to create about 3,000 direct jobs and 100,000 indirect jobs, according to the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote.

Wabote stated this on Tuesday during the commissioning of the 5,000 barrels per day (bpd) Waltersmith Modular Refinery, developed with 30 percent equity investment by the NCDMB.

President Muhammadu Buhari had on Tuesday performed the virtual commissioning of the Waltersmith Modular Refinery, describing the role played by the Board as novel in concept and superb in delivery.

The President also performed the ground-breaking of the refinery expansion at the Ibigwe field, Ochia Community, Ohaji-Egbema Local Government of Imo State. The new phase will first add 25,000 barrels per day processing capacity, before the final phase of new 20,000 bpd, bringing total capacity to 50,000 bpd.

Delivering his address virtually, President Buhari stated that the deployment of modular refineries was one of the four elements of the Refinery Roadmap introduced the Federal Government in 2018 to meet local needs for petroleum products and eliminate importation.

According to a statement from the NCDMB, Wabote canvassed that at least 10 percent of Nigeria’s oil production should be refined through modular refineries, noting that an average of 10 direct jobs are created for every 1,000barrels/day capacity of modular refinery.

He said, “We believe that about 3,000 direct jobs and over 100,000 indirect and induced jobs can be created if 10 percent of Nigeria’s oil production is refined using modular refineries.”

The NCDMB boss also provided the basis of the Board’s equity investment in the 5,000bpd Waltersmith Modular Refinery. He hinted that Section 70(h) of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act mandates the Board to assist local contractors and Nigerian companies to develop their capabilities and capacities to further the attainment of Nigerian Content in the oil and gas sector of the economy.

According to him, “This refinery creates job opportunities and business prospects, enhances availability of petroleum products, and provides ready market for some of our crude cargo within our shores. At current capacity, this refinery will utilize about 1.8million barrels of crude oil. At the completion of the expansion works, this will increase to more than 16million barrels of crude and condensates every year.”

The Executive Secretary confirmed that NCDMB was also in partnership with other investors for the construction of a 2,500bpd modular refinery in Edo State, which will later be expanded to 10,000bpd and another 12,000bpd hydroskimming refinery in Bayelsa State, that will produce a full slate of petroleum products to serve immediate and nearby markets.

In the same vein, President Buhari assured that Government was making good progress in the Rehabilitation of existing refineries, Co-location of new refineries, and Construction of greenfield refineries, with the firm goal of making Nigeria a net exporter of petroleum products in a few years’ time.

He also commended the expansion plans of Waltersmith Refining & Petrochemical Company and directed the Ministry of Petroleum Resources and other relevant Government Agencies to provide the company all the necessary support with regards to access to crude oil and condensate feedstock for the timely delivery of the additional capacity.

In his speech, Minister of State for Petroleum Resources, Chief Timipre Sylva applauded Waltersmith and NCDMB for embarking on the project in 2018, considering the immaturity and uncertainty in the downstream sector as at that time. ”It is only investors who have faith and believe in Nigeria, with clear delivery strategy that would have had such boldness,” he emphasised.

He clarified that efforts to achieve sufficiency of locally refined petroleum products “has to be a combination of large-scale processing plants as well as small to medium modular processors which will be enabled by our progressive policies and regulations.”

He challenged other investors to take a cue from Waltersmith and speed up action on similar development efforts to jointly grow the nation’s economy.

The Governor of Imo State, Senator Hope Uzodinma while delivering a goodwill message lauded President Buhari for providing purposeful leadership and conducive investment climate that enabled the establishment of the Waltersmith Modular Refinery within two years of conception. He recalled that successive administrations had awarded licenses for similar projects, with none of them coming to fruition.

He assured that the Imo State Government will partner with the host communities to protect the investment, while charging the company to discharge its statutory obligations to government and perform its corporate social responsibility to the communities.

Modular Refineries will eliminate importation, make petroleum products available – President Buhari at commissioning of Waltersmith refinery

The establishment of modular refineries in the country will make petroleum products available in the country and eliminate importation, President Muhammadu Buhari stated on Tuesday.

According to a statement by the Special Adviser to the President, Media & Publicity, Mr. Femi Adesina, the President spoke at the virtual inauguration of the 5,000 barrels per day Waltersmith modular refinery in Ibigwe, Imo State, as well as the Ground-Breaking Ceremony for the Phase-2 works to expand the capacity of the refinery to 50,000 barrels/day.

President Buhari said the deployment of modular refineries was one of the four key elements of his administration’s Refinery Roadmap rolled out in 2018, adding that its implementation will make Nigeria a net exporter of petroleum products.

He expressed delight that Waltersmith refinery in Ohaji Egbema Local Government Area of Imo State was coming on stream within two years of the commencement of the Roadmap, after many years of granting licenses for the establishment of modular refineries with nothing to show for it.

”Furthermore, there is increased momentum in the other three focus areas under the Roadmap covering the Rehabilitation of existing refineries, Co-location of new refineries, and Construction of greenfield refineries.

”The realization of the Refinery Roadmap will ultimately lead us to becoming a net exporter of petroleum products not only to our neighbouring countries but to the worldwide market.

”This modular refinery is the largest commissioned modular refinery in the country today.

”The role played by the Federal Government through the Nigerian Content Development and Monitoring Board (NCDMB) in going into collaboration with Waltersmith Refining and Petrochemical Company is novel in concept and superb in delivery,” he said.

The President described plans to commence the expansion of the capacity of the refinery to 50,000 barrels per day to refine crude oil and condensates as an important part of economic reforms the country is undergoing.

”I look forward to seeing this new phase completed within the target timeframe,” he said.

President Buhari, therefore, directed the Ministry of Petroleum Resources, Department of Petroleum Resources (DPR), NNPC, as well as all relevant Government Agencies to provide Waltersmith Company all the necessary support to access crude oil and condensate feedstock for the timely delivery of the additional capacity.

In line with his administration’s agenda on jobs creation, the President said he was pleased to note that hundreds of direct and indirect jobs were created during the construction of the first phase of the project in addition to the various business opportunities.

Equally, he expressed hope that the construction of the second phase of the project will create bigger additional employment opportunities.

President Buhari thanked the local community and the people of Imo State for hosting the refinery, which, he stressed, will bring prosperity and economic development to the area.

The President commended the Ministry of Petroleum Resources, the Honourable Minister of State for Petroleum Resources, Timipre Sylva, the Chairman and members of the Governing Council, and the management and staff of the Nigerian Content Development Board for making the public-private partnership a success.

He also commended the Chairman, Board, Management and Staff of Waltersmith Refining and Petrochemical Limited for their professionalism and focus in getting the project completed.

Governor Hope Uzodinma of Imo State and the Minister of State, Petroleum, cut the tape on behalf of the President, at the event which was also attended by the Group Managing Director of NNPC, Mele Kyari, the Executive Secretary, NCDMB, Engr. Simbi Wabote and the Chairman of WalterSmith, Abdulrazaq Isa.

$500m modular refinery to be established in Ondo

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.

#NDNewVision: PHOTOS of Modular refineries in Niger Delta

As part of the Niger Delta New Vision of President Muhammadu Buhari administration, two modular refineries in Niger Delta region are expected to be inaugurated by the end of this year.

OPAC Refinery, Umuseti, Delta State

Two modular refinery projects have commenced construction out of the 10 licensed projects identified for possible groundbreaking. They are the: Niger Delta Petroleum Resources – Establishment of additional 10,000bpd Modular Refinery in Ogbele, Rivers State; OPAC Refineries – to establish 7,000bpd refinery in Umuseti-Kwale, Delta State (phase one). Another refinery, WalterSmith (Petroman) – to Establish 5,000bpd refinery in Ibigwe, Ohaji, Imo State – is expected to come on board in the near future.

 

 

Niger Delta Petroleum Resources (NDPR) Refinery, Ogbele, Rivers State

The key objectives of establishing modular refineries in the Niger Delta region include the following:

  • To promote availability of petroleum products in the country and boost economic development nationwide,
  • To promote socio-economic development and  provide jobs for unemployed youths in the region, thereby sustaining peaceful coexistence in the Niger Delta,
  • To increase local content in Region,
  • To mitigate and eliminate negative environmental degradation associated with illegal refinery activities, crude oil theft and pipelines vandalism.