Two Modular Refineries Will Be Ready In N/Delta By December – Kachikwu

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said that two of the 38 Federal Government approved modular refineries which had been granted licences to construct and operate in the Niger Delta region would soon be completed for commissioning by December this year.

Kachikwu disclosed this when he led a joint team from the ministry, office of the Vice President and the Department of Petroleum Resources (DPR) to inspect ongoing construction of a modular refinery by Omsa Pillar Astex Company Limited (OPAC Modular Refinery) in Kwale, Delta State.

The Minister said that the President Muhammadu Buhari-led administration’s resolve to establish the modular refineries as part of the long term plan by the government to end importation of petroleum products from other countries as well as to discourage illegal oil bunkering activities in the region.

Kachikwu, represented by his Senior Technical Adviser (Refineries and Downstream Infrastructure), Engr. Rabiu Suleiman, said the two modular refineries which will be commission by the end of the year are located in Rivers and Delta States.

The minister who was conducted round the site by the Chief Engineer from Russia, Elberd Bilanich, expressed joy at the pace of construction work at the OPAC Modular Refinery, saying that upon completion, the two refineries would refine 7, 000 barrels of crude oil each daily.

“We are here to provide support as government and also evaluate performance of what this company is doing which is in alignment with the vision of this government. And how we as a government can encourage local production of petroleum product and to see to the establishment of many modular refineries as indicated by government to provide such support.

“If you recall, sometime last year, the Vice President visited the Niger Delta and made a policy statement that will encourage the establishment of modular refineries. We are happy that we are here today. This is one of the first few that have meant to that promise to deliver on what they have promised to do and today we are happy to see the installation of 7,000-barrel capacity modular refinery. As you can see, Russian Technology is being installed.

“The commitment we hear is that within six months from now, the refinery would be completed and we are looking forward to seeing that. In my side talks with the chairman of the company, he is expecting another 45 tonnage of materials arriving on site and that is significant portion.

“If that arrives in the next few weeks; and construction continues and the weather being a good friend, six months will be made and that is going to be a promise fulfilled. By that, we can say by end of the year, we’ll be coming to witness the commissioning of yet another refinery in Nigeria.

“A total of 38 licences have been issued ranging from high scale refineries of 100, 000 to 50,000 barrels had been issued. Out of these 38, about 10 of the modular refineries have advanced and they have all secured what we call permit to construct just as it is here. So, with the license to construct the LTA, it means that 10 as at today, are ready to go. This is just one of the ten.

“We have visited others which are also under construction in similar stages as this one. They also gave us six months from last month. Going together, we can see two being commissioned in the next five to six months; and others are on the sea being imported and we look forward to see many more.  The first one that will be commission will be remarkable encouragement on those others who are slowing their feet”, Kachikwu added.

Speaking in the same vein, the Senior Special Adviser to the Vice President on Niger Delta Matter, Edobor Iyamu, said that the President Buhari-led government would continue to give entrepreneurs all necessary support for quick completion of all ongoing modular refineries in the region.

Iyamu said, “From the inspection, we understand that they will begin with Diesel and Kerosene production, but down the line, they will venture into the refining of PMS. This refinery is meant to be a 7,000 barrel per day refinery. We are excited as a government that things are coming to fruition.

“This is another promise that is being kept by the President Buhari-led administration upon completion. All those who are interested in sitting up modular refinery, this clear shows that the government is committed and they should believe what the administration and they should be ready to put their money into this project.”

In his brief remark, the Warri Zonal Operations Controller, Department of Petroleum Resources, Mr Antai Asuquo, who was represented by the Zonal Head of Gas, Engr. Ignatius Anyanwu, said DPR has deployed representatives to the site to ensure they meet FG standards and industry regulations.

Responding, the Chairman of OPAC Refineries, Momoh Jimah-Oyarekhua, confirmed the minister’s position that refinery would come on stream by December this year, disclosing that the company’s production target is 60,000 barrels but decided to started 7,000 from where it would expand in phases.

Oyarekhua noted, “Generally, our plan is to actually to install 60, 000 barrels’ refinery eventually in Delta State and this is our first phase of the refinery. We decided to start from the 7,000 barrels modular and in no time after commissioning -maybe a year, we planning to expand to about 13,000 and 20, 000 to follow and eventually to install 40, 000 before reaching our desire peak of 60, 000 barrels’ refinery.