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DMEA NEWS IN BRIEF DMEA

production from its current 2.4mn capacity to ensure quick take-off. Kuwait plans to re-evaluate
per day to 3mn bpd as well reduce the cost of “We are also a beneficiary of Edo State
production. Government’s incentive programme to attract petrochemical project
“Currently, we have oil prospective licence manufacturing companies to locate in Edo
of about 61, more than 2,000 wells that are State. The incentives gave birth to a Nigerian- State-owned Kuwait Integrated Petroleum
producing crude oil and condensates; we have Chinese joint venture company, AIPCC Industries Company (KIPIC) is planning
about 125 wells producing gas.. Energy Limited.” to re-evaluate the feasibility of its Al Zour
He noted that the company secured Petrochemical Complex Package 3 due to the
its licence to establish a refinery (LTE) impact of COVID-19, a source told Zawya
Nigeria’s Edo refiner to on December 10 2018 and approval to Projects.
“The developer is planning to do feasibility
construct (ATC) on March 11 2019 from the
earn $125mn from annual Department of Petroleum Resources (DPR), study again to evaluate project profitability
and budget due to the impact of COVID-19,”
noting that DPR has been extremely helpful
naphtha exports in guiding the process of the establishment of the source told Zawya Projects, adding that
the facility.
the front-end-engineering-design (FEED)
The Edo Modular Refinery being developed work was completed in June 2020.
by Edo Refinery and Petrochemical Company He said the prequalified bidders list is
Limited (ERPC) with support from the Edo Rwanda fuel prices go up anticipated to be released by the end of
State Government is set to earn about $125mn September 2020.
foreign exchange from the exportation of for first time in 2020 “The EPC tender is expected to be released
naphtha, which is one of the major products by the first week of November,” the source
from the facility. Rwanda Utility Regulatory Authority (RURA) said.
Chairman of ERPC, Michael Osime, who raised gasoline and diesel prices on September In December 2018, the following
disclosed this in a statement, said the refinery 3. consortiums and companies had submitted
benefits from the federal government’s ease of This is the first time the prices for both prequalification documents: JV of China
doing business programme through which it petroleum products increase since the Harbour Engineering Co, Saipem, Mepcom
granted fiscal incentives such as duty waiver beginning of the year, and most especially Offshore and Marine; JV of Eiffage, Afcons,
on importation of equipment. since the outbreak of Coronavirus, or Daewoo; JV of China State, Archirodon; JV
The refinery has reached 90 per cent Covid-19. of Kolin and Jan de Nul; JV of Hong Kong
mechanical completion and efforts are in top A litre of gasoline will now costs RWF966, River, Yunnan Construction, Muhibbah
gear to beat a September 2020 commissioning up from RWF908 while diesel prices have Engineering, MA Kharafi, and JV of
deadline, with a team of over 250 locally- been increased to RWF943 from RWF883. NORINCO International Cooperation, China
recruited engineers, fabricators and other The regulator announced the new tariff in a National Chemical Engineering Co, officials
workers engaged on the project. statement released late on September 2. from five companies confirmed with Zawya
On expansion, Osime said the company They did not disclose the reasons behind Projects.
would “meet 18% of local demand for diesel the increment, but past local fluctuations had The developer has not shortlisted the
and earn in excess of $125mn from export of been attributed to the price volatility on the prequalified companies due to changes in the
Naphtha per annum,” noting that the refinery international market. scope of work, the source said.
would rejig the state’s economy by attracting Fuel prices have been fluctuating so much Package 3’s scope of work involves the
feeder industries. lately. In May, the cost of a litre of gasoline construction of export port, associated
He added that the Edo State Government was reduced from RWF1,088 in March facilities and utilities including ground and
provided a N700mn project support fund that to RWF965. At the same time, diesel had sea pipelines, a second source told Zawya
accelerated the establishment of the company dropped from RWF1,073 to RWF925. Projects.
in the state, after signing a Memorandum In March, oil prices slumped on the KIPIC is developing a Third Olefins project
of Understanding (MoU) with a Chinese international market following an apparent integrated with Petrochemical Refinery
Consortium led by Peiyang Chemical and crude oil war between major oil exporters Integration Al Zour (PRIZe) project and
Equipment Company of China (PCC) and including Saudi Arabia and Russia. also Aromatics 2 complex which would be
its Nigerian partners, Africa Infrastructure At the time when coronavirus was forcing integrated between Olefins III, Aromatics II
Partners Limited (AIPL). countries into total lockdowns, member and the Al Zour Refinery, the source said.
According to him, “The Edo Refinery and states of OPEC failed to reach a consensus on Amec Foster Wheeler is the FEED
Petrochemical Company is a beneficiary of the scaling down the production of petroleum, consultant; NBK Capital is the financial
Edo State Government’s policy of attracting owing to the slump in demand. advisor and Honeywell UOP is the technology
investment to the state. The state government The conflict triggered a record oil price provider, the second source said, adding that
supported the refinery with project support slump which had not been observed in the last the project is scheduled to be completed by
fund of N700 million, which will be paid back 30 years. fourth quarter of 2025.
to Edo State Government when production
commences. This was a catalyst to the project

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