Page 13 - DMEA Week 06 2022

DMEA NEWS IN BRIEF DMEA

POLICY REFINING obligations.”
Hloniphizwe Mtolo, country chair for
IMF reiterates call for Operations halted Shell Downstream South Africa, the decision
to halt operations was a difficult one but
elimination of Nigerian indefinitely at Sapref reiterated that Shell is committed to security
of supply to its customers. Mtolo said South
gasoline subsidy BP and Shell will next month halt operations Africa continues to be a key location for the
at Sapref indefinitely as they mull over the
company.
The International Monetary Fund (IMF) has future of the refinery. NEWS24
once again urged Nigeria’s federal government “The decision has been taken to allow an
to eliminate its long-standing subsidy for informed finalisation on the various options Artisanal refinery society
domestic gasoline prices. available to the shareholders, a sale option
Following their 2021 Article IV being the most preferred,” the companies said inaugurated in Bayelsa
Consultation with Nigerian authorities, in a joint statement on Thursday afternoon.
released on February 7, the IMF’s executive “Until decisions about the future of the plant In line with the directives of President
directors included the lifting of the fuel have been made – including a possible change Muhammadu Buhari to set up cooperative
subsidy on their list of suggested fiscal of ownership – the Sapref shareholders are societies for intending artisanal refineries
measures for promoting economic growth. unable to commit to further investment in the in the Niger Delta region, the Project with
“Directors also urged the removal of refinery.” Artisanal Crude Oil Refiners (PACOR)
untargeted fuel subsidies, with compensatory A “spend freeze” and a “pause” of refinery last Tuesday inaugurated three cooperative
measures for the poor and transparent use of operations will begin no later than the end of societies in Bayelsa State.
saved resources,” they said. “They stressed the next month, Shell and BP said. Known as the Bayelsa West, Central
importance of further strengthening social While the “pause” of operations will be for and East Modular Refinery Multi-Purpose
safety nets.” an indefinite period, the shareholders said Cooperative Society Limited, they will act as
The IMF’s executive directors also the refinery may possibly be restarted in the the authentic platforms of the real artisanal
recommended that Nigeria introduce a value- future, including in the event of a sale. crude oil refiners in the state.
added tax (VAT), improve tax compliance and Located in Durban, Sapref is the largest Inaugurating the committee, facilitator
rationalise tax incentives in order to maximise crude oil refinery in Southern Africa and of PACOR, Fyneface Dumnamene, said
domestic revenue mobilization. accounts for 35% of South Africa’s refining the inauguration was in line with President
Additionally, they called on Abuja to capacity. Buhari’s directives on January 10, 2020, that
replace the official exchange rate for the naira Shell and BP said they will use other Niger Deltans should put artisanal refinery in
with a unified, market-clearing exchange rate existing assets and trading arrangements to the region with operating cooperate society
and to enact macroeconomic policies to help ensure the ongoing security of fuel supply to platforms up to receive licenses for modular
keep inflation in check, as well as structural the country and their consumers. refinery.
reforms that fostered transparency and “SAPREF has made immense economic Dumnamene, who is also the executive
improved governance. contributions at both a local and national director, Youth and Environmental Advocacy
The Nigerian government is currently scale,” said BP Southern Africa CEO Taelo Centre (YEAC) said the centre have been
spending more than NGN240bn ($577mn) Mojapelo. “For this reason, we continue to advocating for the initiative since 2017, and
per month on the gasoline subsidy, equivalent pursue the sale of our share in the refinery they are happy that the president accepted and
to nearly NGN3 trillion ($7.22bn) per year. so that it can continue to advance its legacy directed them to formed it into cooperatives
Efforts to eliminate the price supports have as a reliable, safe and productive asset. for licenses approval.
sparked political controversy. Leading up to the refining pause, we have He said: “The cooperative you see today
NEWSBASE put contingencies in place to ensure that this is the platform to drive this process for the
decision does not impact our customer-facing modular refinery to be set up. Local and
businesses in South Africa or our fuel supply international partners are coming, companies
that are into businesses will partner them, the
blue print will be designed and people will
come in as business partners.
“These are the authentic platforms of
the real artisanal crude oil refiners, who
have stopped and embraced your policy on
modular refineries as alternatives means of
livelihood in Bayelsa State. In the days ahead,
we will inaugurate and also present to you,
modular refinery cooperative societies in
other Niger Delta states.
“The cooperative will have a constitution, a
memorandum of understanding (MoU), and
everything will be done according to the law
of the Federal Republic of Nigeria. Whatever
investment that is going to be made is not
going to anybody’s pocket, it will go into an

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