Page 4 - DMEA Week 15 2021

DMEA COMMENTARY DMEA

Nigeria’s DPR publishes list

of private refining licences

The Department of Petroleum Resources this week announced which refining
plants have valid permits, illustrating the trend towards modular refining.

AFRICA NIGERIA’S Department of Petroleum Resources for refineries with a capacity of 12,000 bpd as
(DPR) this week published a list of valid operat- field developers seek to process crude close to
ing permits for private refineries in the country. the wellhead to avoid transport woes while con-
WHAT: Publication of the list, which includes the trolling sales in the local market.
A total of 23 projects 650,000-barrel per day (bpd) facility being devel- This should come as little surprise given the
either have valid permits oped by Dangote Group at Lekki, led to conster- significant control exerted by fuel marketers,
or have crossed the 50% nation in local press owing to the omission of partially stemming from the chronic failure of
construction prerequisite 32 licences, leading to claims that the DPR had the four large state-owned refineries operated by
for a licence to no longer revokes these permits, forcing the organisation the Nigerian National Petroleum Corp. (NNPC)
be required. to clarify that these licences had actually expired. at Port Harcourt (x2), Kaduna and Warri. While
a project to restore useable capacity at Port Har-
WHY: Capacity drive court first to 90% then to the full 210,000-bpd
Nigeria has a history Of the 23 valid licences, construction has only is kicking off despite misplaced controversy in
of announcing major begun on five, four of which are modular units media and opposition circles, NNPC has admit-
private refining projects with a nameplate design capacity of 5,000-7,000 ted its own struggles with refining with all of
that never materialise bpd, the other being Dangote. these units currently fully offline.
while the public sector The relative low-cost and convenience of NNPC’s issues in operating the refineries are
has an equally patchy modular refineries has seen them become an well documented, with the company saying in
reputation. attractive solution in Nigeria where buy-in from 2019 that it had failed to carry out turnaround
local communities is key to avoiding pipeline maintenance for four decades.
WHAT NEXT: vandalism and reducing illegal refining, which is The valid permits cover plans for 1.09mn
The rise of modular costly to operators and environmentally damag- bpd of capacity, with only the 5,000-bpd modu-
refining has brought ing, not to mention dangerous to those involved. lar unit developed by Waltersmith Petroman at
tangible progress and With that in mind, 16 of the 23 permits are Ibigwe in operation. Given Nigeria’s track record
while the current 23
projects are unlikely
to all be completed, LIST OF VALID REFINERY PROJECT LICENSES AS AT MARCH 2021
the modular approach S/NO NAME LOCATION STATE CAPACITY PLANT LICENSE LICENSE LICENSE LICENSE STATUS
GRANTED GRANT
EXPIRY
CONFIGURATION
(BPSD)
is already improving Waltersmith Refining & Ibigwe Imo 5,000 Topping Plant ATC DATE DATE
NA
Mar-17
the planned-to- 1 Petrochemical Construction completed;
Plant successfully
commissioned ratio. 2 Company Limited Umuseti, Kwale Delta 7,000 Topping Plant ATR Sep-17 NA Commissioned.
OPAC Refineries
Construction completed;
Plant at Commissioning
Stage
3 Niger Delta Petroleum Ogbele Rivers 5,000 Hydro-skimming ATC Dec-18 Dec-20 Construction completed;
Resources (Train 3) Plant Commissioning ongoing.
4 Dangote Oil Refinery Lekki Free Trade Zone Lagos 500,000 Conversion Plant ATC Dec-17 NA Valid; Plant Overall
Company Installation above 80.3%
5 Edo Refinery and Ikpoba-Okha L.G.A. Edo 6,000 Hydro-skimming ATC Mar-19 NA Construction completed;
Petrochemical Company Plant Plant at Commissioning
limited Stage
6 Lowrie Refinery Limited Ika North LGA Delta 5,000 Topping plant ATC Sept-20 Sept-22 Valid
7 Excel Refinery Limited Peretorugbene Bayelsa 5,000 Topping Plant LTE Sept- 20 Sept-22 Valid
Community,
Ekeremor L.G.A
8 Conodit Refinery Umukwata Delta 20,000 Hydro-skimming ATC Jul-19 Jul-21 Valid
Nigeria Limited Plant
9 Duport Midstream Egbokor, Orhionmwon Edo 10,000 Hydro-skimming ATC Sep-19 Sep-21 Valid
L.G.A. plant
10 Clairgold Oil & Gas Koko Delta 20,000 Hydro-skimming ATC Dec-19 Dec-21 Valid
Engineering Limited Plant
11 Ogini Refinery Limited Ogini, Kwale Delta 5,000 Topping Plant LTE Dec-19 Dec-21 Valid
12 Etopo Energy Plc Burutu Delta 30,000 Hydro-skimming ATC Jan-20 Jan-22 Valid
Plant
13 Gasoline Associates Ipokia Ogun 100,000 Conversion Plant ATC Feb-20 Fe-22 Valid
International Limited
14 NPDC/ND WESTERN OML 34 field, Ughelli Delta 10,000 Topping Plant LTE Feb-20 Feb-22 Valid
OML 34 JV East,
Ughelli North LGA
15 Frao Oil Nigeria Limited Uzere Delta 12,000 Hydro-skimming ATC Mar-20 Mar-22 Valid
Plant
P4 www. NEWSBASE .com Week 15 15•April•2021