The Nigeria Content Development and Monitoring Board (NCDMB) has revealed that three more Modular refineries will start operation in the country by 2024.
The executive secretary of the board, Engr. Simbi Wabote, stated this on Tuesday during the opening ceremony of the 12th edition of practical Nigerian Content Forum held at the Nigeria Content Tower in Yenagoa, the Bayelsa State capital.
With the theme, ‘Deepening Nigerian Content Amidst Divestment, Domestication and Decarbonisation’, Wabote noted that the board had already partnered with a local refinery known as Waltersmith to establish a 5,000bpd modular refinery in Ibigwe, Imo State.
He also disclosed that one modular refinery has already started production, adding that the refinery has produced and sold over 170 million litres or about 3,000 trucks of petroleum products this year alone which would have been imported using scarce forex.
The three other modular refineries which he said are nearing completion are Azikel Refinery with support from AFREXIM bank, Dupont Refinery in Edo State and the jetty and FAT for the Inside Battery Limit (ISBL) of the Atlantic Refinery modular refinery.
Wabote said that in the area of gas utilisation, one of the partnerships has enabled the utilisation of part of the OB-3 pipeline with the commissioning of NEDO Gas plant currently injecting lean gas into the gas pipeline infrastructure adding that the partnership has also opened export outlets for other gas operators within the Kwale axis thus eliminating the need for gas flaring.
He said, “While Dupont Refinery in Edo State is essentially complete, we are looking at the various options and offers before us to bring closure to the partnership in line with our Investment Policy. The jetty and the FAT for the Inside Battery Limit (ISBL) of the Atlantic Refinery modular refinery have been completed. We are now focused on taking delivery of the ISBL while exploring all the options open to address the funding challenges hindering the completion of the project.
“In the area of gas utilisation, one of our partnerships has enabled the utilisation of part of the OB-3 pipeline with the commissioning of the NEDO Gas plant currently injecting lean gas into the gas pipeline infrastructure. The partnership has also opened export outlets for other gas operators within the Kwale axis thus eliminating the need for gas flaring.
“Other active sites under our partnerships with local businesses include Butane Energy for LPG storage and distribution in 10 northern states, Bunorr for the production of base oil, Eraskon for lube oil blending plant, and Triansel for construction of LPG Terminal and 5,000MT storage tank.
“We have commenced discussions on key steps required to cure the issues around the partnerships. Under the roadmap initiatives, we challenged ourselves to move from the 27th position in 2019 on the ease of doing business ranking from MDAs to the 1st position last year and still maintained this position this year.
“The portfolio of Nigerian Content Intervention Funds being managed by BOI and NEXIM Bank has grown to $500 million) with various product offerings for assets acquisition, project finance, manufacturing, and others.
“On the construction of additional NOGAPS industrial parks, we currently have eight in our portfolio including the two planned to commence operations next year. The other six are in Akwa Ibom, Imo, Ondo, Delta, Edo, and Abia states which are at various stages of engineering design and site preparation works.”
Also speaking through zoom, the chief executive officer of Nigeria National Petroleum Corporation limited (NNPC) Mele Kyari commended NCDMB for organising the event yearly, stating that there is no other way to build local capacity than what NCDMB is doing currently.
He said, “We need to build our local capacity by organising seminars, workshops and to encourage the local industry to build local capacity.”
Also, the minister of State for Petroleum (Oil), Heineken Lokpobiri represented by the permanent secretary of the ministry,
Gabriel Aduda, who also spoke through zoom thanked NCBMB for organising the event but regretted that Africa has been muddled up in the politics of climate change.
He said that divestment is not something that people should run away from and thanked NCDMB for bringing together stakeholders to brainstorm.
The governor of Bayelsa State, Douye Diri represented by the secretary to the state government, Gideon Ekeowie, thanked Simbi Wabote for building a fora where those in the oil and gas industry gather to discuss the way forward.
“Thank you for bringing stakeholders to come and discuss and implement local contents in Nigeria to provide an avenue for knowledge sharing, collaboration and partnership between key players.
“This emphasises the need for Nigerians to take advantage and maximise the benefits in the industry”, Diri said.
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