Alex Otti, governor of Abia State, has reiterated his administration’s commitment to the timely realization of the proposed 10,000 barrel per day modular refinery project in the state.
The modular refinery, which is located inside the Abia Industrial and Innovation Park (AIIP), Owaza, is being undertaken by the HSI Energies Group and is expected to provide 1000 direct jobs and countless indirect jobs to Abians.
Governor Otti stated this when he received in audience, the management of the HSI Energies Group led by Ugwumba Okezie Nwosu, its Group Chief Executive Officer, visited his office to brief him on the update on the activities of the company in preparatory to the commencement of work at the site.
He noted that the Abia Industrial and Innovation Park sitting on about 2000 hectares of land would be capable of accommodating many industrial companies.
Otti stated that his administration has been busy providing a conducive business environment for businesses to thrive.
He noted that the vast area in the AIIP Owaza is designated for a gas-powered industrial ecosystem, including energy, logistics, housing, modular refinery, petrochemical plants, fertiliser companies and clean infrastructure.
He appreciated Nwosu for his wise decision to locate the modular refinery in the State having concluded preliminary works on the site, and noted that it would contribute to the growth of the economy of Abia State.
“Thank you for the work that you have done so far, bringing the HSI Energies into Abia state to build a modular refinery.
“Of course, we are not oblivious to the kind of time this takes.
“So, I think you have moved very well. Thank you very much. And it is because of the experience that you have,” Otti stated.
Nwosu, earlier while briefing the governor on the activities of the company, said that the project had reached an advanced stage while equity sourcing, debt financing among others were in progress.
He disclosed that the refinery would be developed in phases, and would be expected to generate direct and indirect employment opportunities, boost the State’s Internally Generated Revenue and attract foreign direct investment.
Nwosu stressed that the socio-economic impact of the refinery would be immense, ranging from training opportunities for Abians in the refining, oil and gas business to local access to petroleum products.
He further informed the Government team that the output of the refinery would be 10,000 barrels of oil per day, as stipulated in the licence.
He disclosed that for each 10,000 barrels per day, there would be about 1,000 direct jobs created in Abia State.
“We intend to get to 30,000 barrels per day.
“The only thing stopping us from going to 30,000 immediately is that we have to source the crude oil that we will refine. So, by the time we get to 30,000, that means 3,000 direct jobs and many indirect jobs.
“For each 10,000 barrels of oil per day refinery, the tax that will come to the Government’s internally generated revenue from tax will be about $68 million per annum.
“It will also bring in foreign direct investment of $300 million by the time we get to 30,000 barrels per day,” Nwosu stated.
He appreciated Governor Otti for the construction of the access road leading to the refinery and assured that construction would commence in the first quarter of 2026.
