Page 14 - DMEA Week 30 2022
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DMEA                                         NEWS IN BRIEF                                             DMEA


























       products and that is static at the moment   waiting for crude from President Buhari since   President Buhari can give it crude oil to refine.
       and based on this, our naira will continue   NNPC cannot give it crude. The first phase   I want to draw Chief Sylva antention
       to be devalued, because so much dollars are   will produce 1,000 bpd, while the second   to Edo modular refinery initiative which
       just being deployed in pursuing products.   phase will produce 6,000 bpd; with a long-  will promote availability of petroleum
       The products we buy here in Nigeria are   term goal of producing 60,000 bpd.  products in the country, conserve foreign
       purchased in naira, and not in dollar; but we   Phase one - which is completed - will   exchange utilisation for the importation of
       use the dollar to make payment for imported   target a production ratio comprising 55%   petroleum products, promote socio-economic
       products.                           diesel, 38% fuel oil and less than 10% naphtha.   development in order to stop restiveness,
         I do not understand the delay in providing   ‘Some of the products will be exported to   criminal and illegal refinery activities thereby
       crude oil to Edo modular refinery to start   boost foreign exchange earnings and by the   sustaining peaceful co-existence in the Niger
       operation. The project has been completed.   time the refinery extends it into different   Delta and mitigate environmental degradation
       I want to appeal to President Buhari to as   phases, it would be able to take care of more   associated with illegal refinery activities,
       matter of urgency provide crude oil to Edo   than 80% of diesel requirement in Nigeria.   crude oil theft and pipelines vandalism, then
       modular refinery to enable it start operation.   The investment will benefit the Edo people   Nigerians are on their way to the Promised
       Edo modular refinery is ready and waiting   through job creation, increased revenue and   Land.
       for crude oil from Nigerian Petroleum   ease of pressure on other refineries.  Edo modular refinery has adequate
       Development Company (NPDC) facility - oil   The goal of modularization in the oil   refining capacity and meet all the criteria,
       mining lease (OML) 111 NNPC to starting   and gas market is to reduce capital costs,   hence the opportunities for modular refineries
       operation. There is no explanation from   accelerate delivery schedules, and to   because they are simple, fast to start up
       NNPC for its delay to provide crude oil to Edo   efficiently minimize field construction,   and usually operating at optimal capacity.
       modular refinery. I am appealing to President   thereby ensuring every project is on schedule,   In theory, this is an advantage over larger
       Buhari to provide crude oil to Edo modular   budget, and scope. Edo modular refinery has   refineries. It can also commence production
       refinery since NNPC cannot perform its   been waiting since July, 2021 to commence   with a small capacity of 5,000BPSD or
       function. Edo modular refinery, Ologbo is   operation and NNPC has refused to supply   10,000BPSD, and grow its capacity over time
       very close (OML) 111 yet it cannot get crude   crude oil to Edo modular refinery. This is   by adding more modules.
       oil to start its production. Edo modular   a key legacy project by the Gov. Godwin   As part of its strategy to reposition the oil
       refinery needs crude before it becomes an   Obaseki-led administration to recalibrate   and gas industry, President Buhari in 2016
       abandon project because NNPC cannot give   the state’s industrial base, birthed through   launched a roadmap of short and medium-
       it crude oil to refine. I see it as an attempt to   a Memorandum of Understanding (MoU).   term priorities aimed at developing a stable
       frustrate Governor Obaseki. Nigeria is an oil   Godwin Obaseki, governor of Edo state, said   and enabling the oil and gas landscape with
       producing country yet NNPC cannot give   in July, 2021 that the modular refinery located   improved transparency, efficiency, stable
       Edo modular refinery crude to refine. It is   in Ologbo, Ikpoba-Okha LGA, is ready for   investment climate and a well-protected
       difficult to believe that in this era of subsidy   production. The refinery was developed by   environment tagged ‘7big wins’. The fourth
       payment, NNPC cannot provide crude oil for   two Chinese firms: AIPCC Energy Limited   initiative in the roadmap, ‘Refineries and local
       Edo modular refinery to start operation. My   and Peiyang Chemical Equipment Company   production capacity’ seeks to transit Nigeria
       special appeal to President Buhari is to give   Limited. It has a capacity of 6,000 barrels per   from being an import-dependent nation into
       crude oil to Edo modular refinery at Ologbo   day and it is expected to produce 50 percent of  a net exporter of refined petroleum products
       to start its operation.             diesel (500,000 litres), 25 percent of naphtha   through the modular refineries as vehicle.
         If President Buhari can give crude oil to   (300,000 litres) and 20 percent of fuel oil   This is seen as one of the ways and means
       Edo modular refinery now, Edo Modular   (200,000 litres) from its feedstock.  of tackling non-availability of petroleum
       refinery will increase petrol products to 60,000   With President Buhari’s instruction to   products. This much was evidenced when
       bpd. The project has been developed by two   DPR and the Nigerian National Petroleum   President Buhari performed the virtual
       Chinese firms; AIPCC Energy Limited and   Corporation, NNPC, to provide all necessary   inauguration of the National Oil and Gas
       the Peiyang Chemical Equipment Company   support in securing oil and condensate   Excellence Centre on January 21, this year.
       Limited. Governor Obaseki has developed   feedstock for the Edo modular refinery,   One of the issues he spoke about was modular
       keen interest in this project. Edo is the only   there are expectations that the project will   refinery.
       state that can boast of two modular refineries   be a success. Edo Modular Energy refinery   NIGERIAN OBSERVER
       that cannot get crude oil from NNPC TO   is set to increase crude oil production from
       REFINE. Operations have commenced and   6,000 barrels per day (bpd) to 60,000 bpd if



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