Green Energy International Limited (GEIL), the Operator of the Otakikpo field marginal fields hosted visitors from the Steering Committee on the Establishment of Modular Refinery Intervention Funding (SCEMRIF) and Technical Committee on Crude Oil Domestic Supply Obligation (TCCODSO) on a working visit to Otakikpo on the 24th of May 2021, to assess the establishment of a 5000bpsd modular refinery at the field.
The teams included representatives from the Federal Ministry of Petroleum Resources, Nigerian National Petroleum Company (NNPC) and the Bank of Industry (BOI) with a primary aim of assessing the progress of the refinery project and review the consideration of the Federal government’s assistance, particularly in project funding.
Professor Anthony Adegbulugbe, the CEO of the Company reaffirmed the commitment of the Company in establishing the modular refinery and confirmed that the Company has commenced the renewal process for the License to Establish (LTE) the refinery with the DPR.
He further reiterated that the Company has strategically positioned itself to ensure it does not incur most of the hurdles faced by other refinery license holders which are mostly related to the availability of feedstock, ease of accessibility for product offtake (via road or sea), and other operational logistics. All these together with the dedication of GEIL to promoting indigenous participation in the energy business space distinguishes the company in embarking on a successful petroleum refinery project.
Professor Anthony Adegbulugbe confirmed that GEIL firmly believes that for marginal field operators in Africa to fully achieve their long-term investment and economic potentials, they must become truly integrated energy companies. This translates to using the natural resources in their custody to provide solutions (Gas to Power, LPG, and refinery) for their countries. The economic survival of these operators and indeed of the host countries will depend upon not the traditional production and export of crude oil but on these value additions. The inherent advantage in their small size with the attendant ease in decision making should be deployed to quickly embrace and implement this vision.
The above notwithstanding, the professor cautioned that traditional solutions for survival in current market conditions must not be sacrificed. Meticulous planning, operational excellence, and operating in a lean and efficient manner to avoid unnecessary cash outlays that they simply cannot afford. He stressed that marginal field operators must continue to weigh risks and benefits for new project decisions and maintain enough flexibility in their project plans to make changes.