Page 12 - DMEA Week 11 2020

DMEA REFINING DMEA
Nigeria moots modular refineries as crude oil theft solution
NIGERIA
The government of Nigeria’s Rivers State is mooting plans for the construction of multiple new modular refineries, saying that such facilities might help deter and reduce the theft and illegal processing of crude oil.
THE government of Nigeria’s Rivers State is mooting plans for the construction of multiple new modular refineries, saying that such facil- ities might help deter and reduce the theft and illegal processing of crude oil.
Deputy Governor Ipalibo Harry Banigo touted the programme at the weekend, during a series of meetings with representatives of the community youth development committees (CDCs) in all 23 of Rivers State’s local councils. She said that the administration saw modular refineries as perhaps the best solution to the problems that result from stolen oil. Sending crude to a modular refinery would help foster legitimate trade and reduce the amount of pol- lution generated during illegal processing oper- ations, she asserted.
She also argued that modular plants were more likely to promote the interests of poor peo- ple in Rivers State. Rivers is home to around 7mn people, she explained, and no more than 2,000 people are involved in the illegal acquisition and refining of crude oil.
Banigo did not specify the likely cost of build- ing these refineries or reveal further details. Indeed, she stressed that construction could not begin without a green light from the relevant fed- eral agencies.
The delay could have negative consequences, she said. “Pollution is killing the soil, water, plants, etc. If nothing is done in the next 10 years, nobody knows what will happen to our people and who will live and who will not,” she
remarked. “This is why we have been consulting all segments and layers of authority to get inputs for the move to help the youths and illegal refin- ers set up modular refineries.”
The state government’s next step will be to start discussions with federal government agencies such as the Environment Ministry and the Department of Petroleum Resources, the deputy governor added. Rivers will also try to begin talks with potential lenders as well, she said.
Banigo also spoke directly with some of the residents of the state who attended the meetings. Many of those present alleged that the prob- lem of theft and illegal refining involved many important local figures, including representa- tives of the Nigerian Army and the national oil company (NOC), as well as unemployed and underemployed youths. ™
ADNOC to boost output to 4mn bpd
UAE
The UAE has followed Saudi Arabia’s lead in announcing plans to boost production.
STATE-OWNED Abu Dhabi National Oil Co. (ADNOC) announced plans to raise oil exports to more than 4mn barrels per day and accelerate a push to hike the UAE capacity by a quarter to 5 million bpd when the present OPEC+ output agreement runs out at the end of March.
The ADNOC move follows a similar push by Saudi Aramco to boost both supplies and spare capacity in the hope of winning a quick mar- ket share battle against Russia and non-OPEC producers.
The news accompanied comments from ADNOC Group CEO Sultan Ahmed Al Jaber on recent market developments. On 11 March he said: “Today, as a result of the steps we’ve taken over the last four years, ADNOC is far stronger and better positioned to respond to current
market conditions. Our focus on driving per- formance, profitability and efficiency has made us more resilient, agile and responsive to mar- ket dynamics. These guiding principles remain unchanged as we move forward with projects across our value chain.
“In line with our production capacity growth strategy announced by the Supreme Petroleum Council (SPC), we are in a position to supply the market with over 4mn bpd in April. In addition, we will accelerate our planned 5mn bpd capacity target.
“In response to market conditions, and to provide better forward visibility to our custom- ers, ADNOC will shortly announce forward prices for the months of March and April 2020. This decision has been made to ensure that our
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w w w . N E W S B A S E . c o m Week 11 20•March•2020