Mr. Chikezie Nwosu, Chief Executive Officer of WalterSmith Petroman Oil Limited, the operator of the new refinery, has disclosed that the newly commissioned 5,000 BPD Refinery will produce 271 million liters of petroleum product annually.
This information was disclosed by Nwosu in his address during the commissioning ceremony of the 5,000 BPD Modular Refinery, in the Ibigwe Field, Imo State.
Mr. Nwosu disclosed that the refinery will refine 5,000 barrels per day of crude oil, and produce 271 million liters of petroleum product annually.
He added that since it commenced the evacuation of products in November 2020, it has already delivered 5 million liters of product into the Nigerian market.
While speaking at the ceremony, the Executive Secretary of the Nigerian Content Development and Monitoring Board, Engr. Simbi Wabote explained that the next phase of the project will be a 45,000 BPD Refinery, with a completion timeline of 24-30months. When completed, the Refinery will utilize 16 million barrels of crude oil annually.
He stressed that this is an impressive and avid step towards the board’s mandates of developing in-country capacities/capabilities to add value to Nigeria’s hydrocarbon resources.
The ES of NCDMB disclosed that the Federal Government’s target is that at least 10% of Nigeria’s crude and condensate production should be refined through modular refineries.
What you should know
The refinery is one of the government’s investments in the oil industry, as FG’s investments in ongoing modular refinery projects so far amount to 80,000 BPD of combined modular refining capacity.
WalterSmith Petroman Oil Limited owns 70% of the Refinery being commissioned today, while the Nigerian Content Development and Monitoring Board on behalf of the Federal Government of Nigeria hold 30% equity of the refinery.
However, it is important to note that the Federal Government of Nigeria signed a Memorandum of Understanding (MoU) with the Niger Republic on the transportation and storage of petroleum products.
Why this matters
The refinery is a giant step towards the development of capacities and capabilities in the oil industry, especially in terms of local production of refined petroleum products.
The Refinery will strengthen local and indigenous investment in the oil industry and boost the production capacity of refined crude products in the country.
According to OPEC, Nigeria’s petroleum products import of $58.75 billion, outstrips the country’s crude oil export of $45.12 billion, at the end of 2019. This development is expected to reduce the importation of petroleum products in Nigeria.