Page 7 - DMEA Week 24 2021
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DMEA COMMENTARY DMEA
a special advisor to President Muhammadu statement said.
Buhari on Niger River Delta affairs, Abuja is According to Timipre Sylva, Nigeria’s minis-
looking to stop banning and start regulating ter of state for petroleum resources, the project
small-scale oil processing. will help maximise the availability and afforda-
“We are working on the policy that will reg- bility of fuel supplies in the region. “Construc-
ulate the operations of artisanal refineries in the tion of this depot in the Niger Delta is a big
Niger Delta. It will soon be operational,” Enang milestone, as the people in the riverine areas
said last week, according to a report from Agence buy petroleum products [at] five times the price
Ecofin. other people purchase it,” he remarked.
The senator did not explain exactly what the
legalisation plan would entail or when it would Supply shortages, or something deeper?
be launched. As such, it is not yet clear what Sylva went on to assert that illegal refining had
Abuja intends to do – whether it will turn a blind become a problem because of the delta region
eye to local refining operations that secure feed- often experienced fuel shortages. “This project
stock by siphoning oil from pipelines (or, occa- will assuage the problems of the Niger Delta
sionally, by diverting tankers from their planned and will curb illegal refining occasioned by lack
destinations), whether it will help make legal of access to [fuel],” he said. “With this happen-
connections between upstream operators and ing, we will have products at the same rate as
small-scale refiners working in the delta region anywhere.”
or whether it will pursue some other remedy. It was not immediately clear whether the
BPPT project would have any ties to the legali-
BPPT initiative sation initiative announced by Enang. If it does,
This lack of clarity is evident in the fact that it might help alleviate some of the delta region’s
Enang spoke shortly after two state-run organ- problems – not just by increasing fuel supplies
isations – the Nigerian Content Development in the delta region, but also by tying small-scale
and Monitoring Board (NCDMB) and Nigerian refiners into a distribution hub that served local
National Petroleum Corp. (NNPC) – teamed up communities.
with ZED Energy Ltd for a project designed to But if it does not, it might not make much of
curb illegal oil refining. a difference. Instead, it would demonstrate that
According to a statement from NCDMB, Sylva and other officials in Abuja are assuming
the parties signed a shareholders agreement last that the Niger River Delta’s travails are largely
week on the construction of the Brass Petroleum (or perhaps even completely) the result of sup-
Products Terminal (BPPT), a facility that will ply problems and not a symptom of a deeper
distribute refined fuels in the Niger River Delta. and more complex situation. In the meantime,
BPPT will be capable of storing 50mn litres of Nigerian federal authorities might benefit from
gasoline, diesel, jet fuel and kerosene and will divulging more details of their plans for legaliz-
also serve as a strategic reserve for Nigeria, the ing small-scale refining in the region.
Week 24 17•June•2021 www. NEWSBASE .com P7
