Department of Petroleum Resources (DPR) has restated the Federal Government’s commitment to finding a lasting solution to Nigeria’s perennial fuel scarcity crisis by fast-tracking the establishment of modular refineries. This is as the nation continues to rely on imported petroleum products as its four refineries continue to under-perform.
Speaking at a day sensitisation programme on the Establishment of Modular Refineries in Nigeria, in Lagos, Tuesday, Alfred Ohiani, head, engineering and standards divisions, DPR, said the Federal Government had decided to once again encourage the establishment of modular refineries across the country due to the urgent need to address the nation’s recurrent fuel scarcity woes within the shortest period of time, and at the most affordable costs.
He said the government was also looking to marginal oil fields and the newly divested assets for investment in the setting up of modular refineries whose timeline and cost held better chance of achievement more quickly than the conventional refineries.
According to Ohiani, who represented George Osahon, director, DPR, at the event, a modular refinery is a crude processing facility with narrow product line limited to kerosene, diesel and low pour fuel oil (LFPO) with a production capacity of between 1 – 30,000 barrels per day or bigger, and a completion period of between 18 – 24 months.
The DPR looks to “squeeze out value from stranded hydrocarbon in remote locations and marginal fields to enhance utilisation and spur economic activities,” as part the agency’s initiative to establish private refineries within the country, Ohiani said.
He also said the DPR would ensure fast-track processing for investors, just as he debunked the allegation that the processing fee of licences was at a high cost of initial $1 million, revealing that the fee had since been cut to $50,000 to encourage interested investors.
He said the agency had “reduced the licensing fee from $1 million to $50,000 for establishment of the modular refineries in the country. We do not think that the amount is too much for any serious investor. Setting up a refinery is a capital intensive project, which demands that all financial related issues are settled before application could be made.”
OLUSEGUN ABISOYE
