Nigeria eyes investment in oil refinery to create jobs, reduce petrol importation

NIGERIA – Nigeria, through the Nigerian Content Development and Monitoring Board (NCDMB), has expressed interest to develop a US$25 million oil refinery project to reduce importation of petrol and create Jobs for Nigeria.

Guardian Nigeria reported that NCDMB was partnering with private investors to actualize the oil refinery investment project.

According to the report by Guardian Nigeria, the project if successful would lead to creation of 1,500 jobs and limit the importation of Premium Motor Spirit (PMS) also called petrol through a new investment worth N10 billion ($25 million).

With the poor state of the country’s existing refineries, Nigeria has had to rely on importation of PMS despite it being a major producer of crude oil.

Reliance on imported petrol not only denies Nigeria opportunity to create jobs for its people but has also drained government’s revenues with spending on subsidy.

Executive Secretary of the board, Simbi Wabote, said that the agency was working hard to domesticate skills required to run modular refineries in the country.

He further revealed that a 2,500 barrels per day (bpd) modular refinery, 30MMscfd gas processing facility and 2MW power plant are expected from the new investment.

The NCDMB has been part of a 5,000bopd modular refinery being developed by Waltersmith Refining and Petrochemical Company, boasting of a 30 per cent equity financing.

It also, among others, acquired equity in the 12,000bpd Azikel Hydroskimming Modular Refinery being constructed by Azikel Petroleum Limited at Obunagha, Gbarain, Bayelsa State.

Upon completion, the refinery is expected to produce about 1.3million litres of PMS daily as well as diesel, kerosene, mixed liquefied petroleum gas (cooking gas) and a small percentage of heavy fuel oil.

Wabote added that the investments were coming under the Board’s commercial ventures programme, and was in line with the Board’s vision to serve as a catalyst for the industrialisation of the Nigerian oil and gas industry and its linkage sectors.

The secretary of the NCBMB stressed that the recent drastic drop in the prices of oil had made it imperative to have refining capacities to reduce if not eliminate cases of stranded oil cargoes without buyers.

NCDMB has commenced discussions with some Original Equipment Manufacturers on how to domicile the fabrication and assembly of modular refineries in-country.

This according to NCDMB will ensure modular refineries do not fold operations due to lack of key spare parts necessary for their efficient operations.

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