2 modular refineries kick-start October in Delta

Vice President Yemi Osinbajo has visited Delta State to ascertain progress work on the modular refinery initiative by the Federal Government, just as two modular refineries are expected to be inaugurated in the next five or six months.

Osinbajo, who was represented by his Senior Special Assistant (SSA) on Niger Delta, Mr Edobor Iyamu, made the disclosure at the facilities inspection of OPAC refinery an indigenous modular company located in Kwale, Ndokwa East Local Government Area of Delta.

He restated the Federal Government’s commitment towards creating an enabling environment for modular refineries business to thrive in the country.

The VP’s aide, Iyamu, said the company would commence with the production of Diesel and Kerosene and later include PMS at an operating capacity of 7,000 barrel per day.

“Sometime ago, we made a promise as a government to the Niger Delta region that we are going to introduce modular refinery for two reasons.

“As a way of substituting the activities of the illegal refineries and to also increase our local production.

“What we see here is quite impressive, a lot of work is going on and hopefully before the end of the year, this project would have come on stream and that will be good for our country.

“We are excited as a government, we made the promises. This is, again, another promise that is about to be kept in terms of completion.

“So those who are interested in setting up modular refineries should believe what the government is doing and invest in it,” he mooted.

Senior Technical Adviser to the Minister of Petroleum Resources in charge of Refining and Downstream Infrastructure, Mr Rabiu Suleiman, a, member of the entourage, said the visit was to evaluate the extent of construction work and also support the investor.

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Suleiman disclosed that about 38 entrepreneurs were granted operating licences to establish modular refineries, ranging from between 50,000 to 250,000 barrels, adding that 10 have secured the “permit to construct.”

According to him, “We are here to provide support as government and also evaluate what the entrepreneur is doing in alignment with the vision of the government to see how we can encourage local production.

“We are here to see how the 7,000 barrel capacity can support the government from the extra money going into importation of petroleum products and support the investors so that we can be self-subsistence in terms of production.

“Another one under construction is almost at similar stage with the OPAC, so we are looking forward towards commissioning two modular refineries in the next five or six months.

“There is never enough in terms of refineries, our vision is to ensure that all our crude oil is refined in Nigeria and exported, so there is a good margin in modular refinery business.”

The Chairman of OPAC refinery, Mr Momoh Oyarekhua, said the target of the company was 60, 000 barrel capacity and would come in phases.

He also said that the investment would provide between 50 and 100 direct jobs.

“At this construction stage, we have over 100 local staff and 18 expatriates; so at post-construction, we are looking forward to employing between 50 and 100 staff aside auxiliary staff.

“We have good relationship with the community; we encourage them to plan and build businesses upon this project that is coming to their community, ” he said.

Meanwhile, the Operations Controller, Warri Zonal Office of the Department of Petroleum Resources (DPR), Mr Antai Asuquo, applauded the level of work done so far.

Antai, who was represented by Mr Ignatius Anyanwu, Manager, Gas of DPR, said two staff of the DPR were at the site to ensure that the job was done according to standard.