Swedish Investors Set To Partner With Gbaramatu Kingdom On $400mn Modular Refinery Project

…Project will boost Delta’s IGR, FDI profile – Ofehe

A consortium of Swedish investors have expressed their willingness to come to Delta state and work on the necessary paperwork to kickstart the financing of the Gbaramatu Modular Refinery project in Oporoza, Warri South-west Local Government Area of Delta State.

BIGPEN NIGERIA (https://bigpenngr.com) reports that Executive Assistant on External Relations and Diaspora Affairs to the Delta State Governor, Comrade (Dr) Sunny Ofehe, disclosed this over the weekend when he led a team of Dutch consortium firm on a fact-finding mission to Oporoza, ancestral headquarters of Gbaramatu Kingdom on behalf of the Swedish Export Credit financing of the Gbaramatu Modular Refinery project.

The multi-billion dollar project which was initiated by High Chief Wellington Okrika, the Bolowei (Prime Minister) of Gbaramatu Kingdom when he held sway as the pioneer chairman of the Delta State Oil Producing Areas Development Commission (DESOPADEC) faced difficulties securing financing in the past. 

The community-based project had spanned about seven years on the drawing board. 

However, with the federal government’s licensing and approval from the Nigeria National Petroleum Company Limited, Ofehe said that the Swedish investors have taken a keen interest in the project. 

He said that the project aimed to attract foreign direct investment, boost the state’s economy, create job opportunities, and improve the overall investment profile of Delta state.

Speaking at the palace of the Pere of Gbaramatu Kingdom, His Majesty, Oboro-Gbaraun II, Aketekpe, Agadagba, Ofehe said that he became interested in the project after he met the monarch in Paris, France where he had solicited for intervention to secure investors for the multi-billion dollar project.

Chief Sunny Ofehe addressing the monarch

He said; “We were in Gbaramatu kingdom to inspect the modular refinery project site. 

“Actually Gbaramatu Kingdom had this project planned since 2016 and they have been looking for financing for it. 

“I met with His Royal Majesty, Oboro-Gbaraun II, Aketekpe in Paris and he told me about the project and I assured him that I was going to look into my network if we could get a financial institution that could finance the project.

“Somehow I managed to secure one from Sweden. I was in Stockholm, Sweden last week and we had a robust discussion with the investors.

He disclosed that the Swedish investors and the Dutch consortium firm including the Gbaramatu people have entered into a non-disclosure agreement and are currently working on the necessary documentation for the project.

Some of the Gbaramatu Kingdom palace Chiefs at the event

According to him, the location of the refinery, its proximity to the sea, and the security situation were assessed during the visit to Gbaramatu Kingdom.

“We have entered into an NDA agreement, though our mission today was to go to the Kingdom, meet with all the stakeholders including the King himself, all of the Chiefs and several people that have been involved in this project.

Chief (Col) Satchie Etoromi (Rtd) and High Chief Wellington Okrika

“But most importantly to check the location and see how close this refinery will be to the products. We also came to see the security situation, the proximity of the jetty because you also need to be close to the sea. So all of these are the reason we’re here today.

“We are going back now to put all of this information together and go back to Stockholm, Sweden to make the presentation on behalf of the Kingdom.

He said that if successful, the project has the potential to significantly boost Delta state’s economy, improve its foreign direct investment profile, and generate employment opportunities.

According to him, the Swedish consortium is estimated to invest around $400 million in the project, with the modular components potentially sourced from Sweden.

Ofehe maintained that the financing and return on investment for the project are major considerations that need to be addressed hence the visit to Gbaramatu.

“We are  very hopeful that we will come up with the needed financing for the project and it would be good for the state most importantly because just recently the NBS report says that 27 states out of 36 states of the country couldn’t generate a single dollar FDI and unfortunately Delta state is among them.

“So if we are able to bring this to the state, it will definitely propel Delta state to become the third in terms of foreign direct investment.

“So capital importation will definitely boost the IGR of the state, increase our FDI profile and create jobs for the people and of course we will get other corporate social responsibilities in the course of developing this project.

“We are looking at $400 million dollars on average, so far the Swedish consortium has said that we will get the modular project from Sweden and we don’t know how much that would be valued.

“$400million is based on getting the modular itself from the United States so we will have to review that when we go back but what is most important is to ensure that there will be security on the investment and guarantee on return on investment for the project”, Ofehe said.

Addressing the delegation at the palace, High Chief Wellington Okrika, said that the project has long reached the advanced stage of its planning, saying that every documentation that needed to be done for its takeoff has been done.

High Chief Wellington Okrika

Okrika said that once the Swedish investors who have now shown interest in financing the project Okays the documentation done by the ‘Delta Meet the World’ Dutch consortium firm led by Diederik Bos, the friendly business environment that would encourage the take-off of the project is guaranteed.

Speaking, the paramount ruler of Gbaramatu Kingdom, Pere Oboro-Gbaraun II, Aketekpe, expressed delight that the project is coming back on stream after about seven years of failed attempts to secure investors for it.

The paramount ruler of Gbaramatu Kingdom, Pere Oboro-Gbaraun II, Aketekpe

The monarch assured the delegation that Gbaramatu Kingdom provides a safe and secure environment for the project, stressing that the area is safe, secure and one of the most peaceful business friendly environments in the Niger Delta region.

“We have the crude and gas for the refinery to strive and we can also assure you that we have adequate security here.

“In Short we are security ourselves. When they told me you were coming, I told them don’t come with security because we needed to correct the impression that people have about the Niger Delta waters. 

“Today you didn’t come with security because we have assured the people that so long you’re coming to Gbaramatu you are secure and safe.

“You can see for yourselves that we are safe and secure here. 

“Tompolo, (High Chief Government Ekpemupolo) our son is the one ensuring surveillance for the pipelines in the Niger Delta. We worked together to achieve the peace in the Niger Delta and he is very much aware of your coming to our Kingdom but he is unavoidably absent because he is busy with the national assignment. 

“I can assure you that everyone is excited that we have found investors for this project. The site location is ok, it is within Chanomi creek and near camp 5 which is now a military base and I can also assure you that NNPCL has given us a go ahead and that they will supply the needed crude”, the monarch disclosed.

In his remarks, the Dutch consortium firm led by Diederik Bos, speaking on behalf of the Swedish investors, thanked the monarch for the warm reception accorded him and his team, and assured the stakeholders that they are committed to implementing the necessary paperwork for the project’s takeoff.

Diederik Bos

“I am excited to be here, and I have seen things for myself. When we go back, we will do our presentation and I hope to come back next time with our Swedish investors”, he assured.

Ofehe said that with the support and cooperation of all stakeholders, the Gbaramatu Modular Refinery project is poised to contribute significantly to the State’s economic development

He said the project has the potential to not only boost the state government internally generated revenue but also increasing its foreign direct investment profile.