Edo Modular Refineries and Removal of Fuel subsidy

The two modular refineries in Edo State have the capacity to end the importation of petroleum products in South-South region of Nigeria. The two modular refineries will end fuel subsidy in the South-South region of Nigeria. They will start operation very soon. We are expecting President Buhari to commission them very soon. Edo Modular Energy refinery is set to increase crude oil production from 6,000 barrels per day (bpd) to 60,000 bpd. The project will enhance fuel sufficiency in the country and reduce the sufferings of Nigerians in every facet. Projections are that some of its products will be exported to boost foreign exchange earnings and by the time it extends operations into different phases, the firm would be able to take care of more than 80 per cent of diesel requirement in Nigeria. The investment is also expected to benefit Edo people through job creation, increased revenue and ease of pressure on other refineries.

The continuation of subsidising of petrol is not sustainable in the light of current economic realities. The 2022 deadline is realistic and its impact might be mitigated with the coming on stream of the Modular Refineries project at Ologbo in Ikpoba-Okha Local Government Area of the state and Dupot Oil Modular Refinery, Egbokor Village, Iyoba Ward, Orhionmwon Local Government, Edo State, 650,000BPD Dangote Refinery, Bua Group Refinery, Waltersmith Refinery and other modular refineries. The modular refineries in Edo State are capable of eliminating petrol subsidy in the South-South region of Nigeria. President Buhari should allow these refineries to come on stream before the removal of fuel subsidy.

The removal of petrol subsidy is in the interest of development of the downstream sector. The decision of the government to stop subsidising petrol by 2022 and it will attract more investments to the sector, especially with the passage of PIA. I want a level playing field to be provided for everyone in the sector to encourage competition once the subsidy is removed.

See also  Police Rescue 14 Kidnapped Women, Recover Cows, Sheep In Katsina

Governor Obaseki and two modular refineries will drive industrial revolution in Edo State. The petroleum industry in Edo State received a new boost as the Federal Government reduced the cost of obtaining a refinery license from $1,000,000(one million dollars) to $150,000 (one hundred and fifty thousand dollars) among other things. The ongoing Modular Refineries project at Ologbo in Ikpoba-Okha Local Government Area of the state and Dupot Oil Modular Refinery, Egbokor Village, Iyoba Ward, Orhionmwon Local Government, Edo State will on completion, drive the state’s industrial revolution quest.

In the last 5 years in Edo State, production capacity of PSC’s has steadily increased, averaging 3% growth, to account for about 35% of total production. JV arrangements contributed about 55% of aggregate production in the preceding year. Indigenous Oil Companies’ production capacity accounts for about one-eighth of aggregate production. The depletion and reserves replacement rate y-o-y averaged 2.04% and 4.00% respectively. Currently, the reserves life index stands at about 49.03 years. Edo is one of the lucky states to be an oil producing state. This state contributes 2.06% of the total crude oil output in the country. Benin City is currently the capital of Edo and the state has a human strength of more than 3.3 million spread across the state’s Local Government Areas.

Dupot Oil Modular Refinery, Egbokor Village, Iyoba Ward, Orhionmwon Local Government ,Edo Modular and Refinery Company Ltd. and AIPCC Energy, were on the verge of completing the 5,500bpd Edo Modular Refinery, now at 70 per cent completion stage.

Nigeria’s Edo Modular Energy refinery is set to increase crude oil production from 6,000 barrels per day (bpd) to 60,000 bpd. The project is being developed by two Chinese firms; AIPCC Energy Limited and the Peiyang Chemical Equipment Company Limited.

See also  Proceedings of the Nigerians Senate of Wednesday, 18th March, 2020

Operations are expected to commence between mid-October and december. The first phase will produce 1,000 bpd, while the second phase will produce 6,000 bpd; with a long-term goal of producing 60,000 bpd. Phase one – which is completed – will target a production ratio comprising 55% diesel, 38% fuel oil and less than 10% naphtha. “Some of the products will be exported to boost foreign exchange earnings and by the time we extend it into different phases. We would be able to take care of more than 80% of diesel requirement in Nigeria. That is the vision we have for the next five years,” says Segun Okeni – AIPCC Energy Limited Head of Quality, Health and Safety/Community Relations.

The investment will benefit the Edo people through job creation, increased revenue and ease of pressure on other refineries. This is a key legacy project by the Gov. Godwin Obaseki-led administration to recalibrate the state’s industrial base, birthed through a Memorandum of Understanding (MoU).

The project, sited at Ologbo in Ikpoba Okha Local Government Area, would produce from its feedstock 50 per cent of diesel (500,000 litres), 25 per cent of naphtha (300,000 litres) and 20 per cent of fuel oil (200,000) litres. The crude is to be sourced from the Nigerian Petroleum Development Company’s (NPDC) facility – oil mining lease (OML) 111, near Benin City.

The modular refineries project were among the growing list of ongoing legacy projects of Governor Obaseki through MoU with local and international private investors, which included the 55MW CCTEC Ossiomo Power Plant, which had been completed and ready for use. The Benin Enterprise and Industrial Park, which development is ongoing and the Benin River Port, for which preliminary works are ongoing,” he said.

See also  adsense

Governor Obaseki is committed to resetting the economy of the state for prosperity and industrial growth. According to Obaseki, the local content component of the refinery project ensures that Edo citizens are trained in welding, refinery operation and fabrication works to enable them participate in the construction of the refinery as well as its operation, post-commissioning.

A modular refinery is a prefabricated crude oil processing plant constructed on skid mounted surfaces, with each structure containing a portion of the entire refining process plant, with by interstitial piping to form an easily manageable process. Technically, a modular refinery could be either simple or complex, with capacity ranging from 100 bpsd to 10,000 bpsd. They are however not defined by size. They can be transported in modules across distances and put together at the location desired. The other advantages of modular refineries include short project completion time, relatively small overall project cost, provides quicker investment return, can be installed in small space and could be designed towards petroleum product need around its location.

Inwalomhe Donald writes from Ologbo, Edo State

Be the first to comment

Leave a Reply

Your email address will not be published.


*