A total of 35 firms expressed interest to establish
modular refineries in Nigeria
- Less than half got the approvals from the
department of petroleum resources as only 13 were
given licenses
- The government hopes to use the modular refineries
to stop illegal refining of crude and also create
employment in the Niger Delta region
Out of the 35 firms that expressed interest to
establish modular refineries, 13 have been given
licenses by the Nigerian government.
Maikanti Baru, the group managing director of
the Nigerian National Petroleum Corporation
(NNPC) made the announcement at the Offshore
Technology Conference 2018 Nigeria Oil Industry
Award Dinner in the United States, where he was
the special guest of honour and received an
award.
According to him, the corporation and the
Ministry of Petroleum Resources were
collaborating to encourage the establishment of
modular refineries in the Niger Delta to
encourage job creation.
Baru stated that in the months ahead, the dream
of transforming Nigeria from a net exporter of
crude oil to a net exporter of petroleum products
would become a reality.
He said he was committed to achieving the
December 2019 target set by the federal
government to end the importation of petroleum
products into the country.
On efforts being made to refurbish Nigeria’s four
existing refineries in Warri, Port Harcourt and
Kaduna, the NNPC GMD said there is an ongoing
arrangement with the original builders of the
refineries to return them to at least 90% capacity
utilisation before the 2019 deadline.
He stated that the process for companies
interested in the rehabilitation of the refineries
using a contractor-financing model had been
completed and successful and the companies for
the different projects would be announced soon.
“ This model is expected to be a self-sustaining financial
model with near zero reliance on the federal government
funds. For smooth running and implementation, we are also
changing the operating and commercial framework of the
refineries to make them work efficiently and be
commercially viable ,’’ he said.
In an earlier report by NAIJ.com , the the minister
of petroleum resources, Ibe Kachikwu, said that
the proposed modular refineries for Delta and
Rivers states were not meant to address the
current refining challenge faced by Nigeria.
He said the modular refineries are expected to
only produce an average 2,000 and 10,000 at
most capacity per refinery while the average
consumption of fuel by Nigeria stands at 630,000
barrels per day.
“ On modular refineries; modular wasn’t supposed to
provide a sufficient solution to your product needs, modular
are on the average between 2,000 and 5,000 maybe 10,000
at most capacity per refinery.
"Your consumption is about 630,000 barrels per day, that is
not the essence of modular, what modular was supposed to
do for us is provide work within some of these communities
where people are busy doing illegal refining," he said
modular refineries in Nigeria
- Less than half got the approvals from the
department of petroleum resources as only 13 were
given licenses
- The government hopes to use the modular refineries
to stop illegal refining of crude and also create
employment in the Niger Delta region
Out of the 35 firms that expressed interest to
establish modular refineries, 13 have been given
licenses by the Nigerian government.
Maikanti Baru, the group managing director of
the Nigerian National Petroleum Corporation
(NNPC) made the announcement at the Offshore
Technology Conference 2018 Nigeria Oil Industry
Award Dinner in the United States, where he was
the special guest of honour and received an
award.
According to him, the corporation and the
Ministry of Petroleum Resources were
collaborating to encourage the establishment of
modular refineries in the Niger Delta to
encourage job creation.
Baru stated that in the months ahead, the dream
of transforming Nigeria from a net exporter of
crude oil to a net exporter of petroleum products
would become a reality.
He said he was committed to achieving the
December 2019 target set by the federal
government to end the importation of petroleum
products into the country.
On efforts being made to refurbish Nigeria’s four
existing refineries in Warri, Port Harcourt and
Kaduna, the NNPC GMD said there is an ongoing
arrangement with the original builders of the
refineries to return them to at least 90% capacity
utilisation before the 2019 deadline.
He stated that the process for companies
interested in the rehabilitation of the refineries
using a contractor-financing model had been
completed and successful and the companies for
the different projects would be announced soon.
“ This model is expected to be a self-sustaining financial
model with near zero reliance on the federal government
funds. For smooth running and implementation, we are also
changing the operating and commercial framework of the
refineries to make them work efficiently and be
commercially viable ,’’ he said.
In an earlier report by NAIJ.com , the the minister
of petroleum resources, Ibe Kachikwu, said that
the proposed modular refineries for Delta and
Rivers states were not meant to address the
current refining challenge faced by Nigeria.
He said the modular refineries are expected to
only produce an average 2,000 and 10,000 at
most capacity per refinery while the average
consumption of fuel by Nigeria stands at 630,000
barrels per day.
“ On modular refineries; modular wasn’t supposed to
provide a sufficient solution to your product needs, modular
are on the average between 2,000 and 5,000 maybe 10,000
at most capacity per refinery.
"Your consumption is about 630,000 barrels per day, that is
not the essence of modular, what modular was supposed to
do for us is provide work within some of these communities
where people are busy doing illegal refining," he said
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