Simbi Wabote, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), has disclosed that the agency was providing equity investment for the establishment of two modular refineries in Imo and Bayelsa states.
Wabote said the refineries would produce a total of 17,000 barrels of crude oil on a daily basis.
“Another major achievement under our technical capability pillar is the provision of equity investment to catalyse the establishment of 5,000 barrels per day modular refinery by Waltersmith Refining and Petrochemical Company Limited in Ibigwe, Imo State, and in the 12,000 barrels per day Hydroskimming modular refinery by Azikel Petroleum Limited at Obunagha, Gbarain, Bayelsa State.”
According to Wabote, while the Waltersmith refinery is on track for completion in May 2020, the Azikel refinery would be completed in 2021.
[READ MORE: NNPC and China Oil Corporation seek to expand $16 billion trade investment]
“We expect about 300,000 litres of diesel daily in addition to various volumes of naphtha, kerosene, and fuel oil from Waltersmith, while Azikel will produce about 1.5 million litres or 50 trucks of petrol daily, including 170,000 litres of diesel and other products.”
Why this matters: The 17,000 barrels of crude oil have huge prospects for jobs creation, value retention, petroleum products availability and the development of in-country capability. With these refineries, local availability of petroleum products will be boosted, and the country can also leverage on the refineries for exportation of crude oil products.
What you should know: The Nigerian government through its state oil company, Nigerian National Petroleum Corporation (NNPC), had expressed commitment to fix some refineries before 2023.
NNPC boss, Mele Kyari disclosed that the Corporation would ensure that the country achieves its production target of 3 million barrel per day and grow its reserves.
Importance of having functional refineries: The refineries across the country are either non-functioning or underperforming. The Port Harcourt, Warri and Kaduna plants have been almost non-functional due to poor maintenance culture and a profound difficulty for the country to sustain the industrial ethics needed for large-scale refining.
[READ ALSO: Competition heightens for Dangote as FG commissions two modular refineries]
While Dangote Refinery is poised to alleviate the national and regional shortages of petroleum products, it should be of common knowledge that there is a need for more functional refineries to serve the general public.
Nairametrics understands that some government policies and strategies put in place might have influenced the decline the country experienced in the importation of refined petroleum products, even as Nigerians consume an average of 53.2m litres of PMS daily.
