Page 13 - DMEA Week 37

DMEA REFINING DMEA

Waltersmith to launch modular

refinery next month

NIGERIA NIGERIA’S Waltersmith has finished its 5,000 economy.
barrel per day (bpd) modular oil refinery at Private conglomerate Dangote is building a
The plant may the Ibigwe oilfield in Imo State, and opera- 650,000 bpd grassroots refinery, but the govern-
eventually be expanded tions should start on October 14, the Nigerian ment has also pointed to small-scale, modular
to 50,000 bpd. Content Development and Monitoring Board processing plants as a solution. These facilities
(NCDMB) said this week. typically use oil from marginal fields.
NCDMB acquired a 30% in the project, Wabote called for at least 10% of Nigerian oil
which will initially produce diesel, in June 2018 to be processed in modular refineries, noting
for $10mn. Construction began in October of that each 1,000 bpd of capacity at these plants
that year. created 10 jobs.
Once the refinery is launched, its products Waltersmith Chairman Abdulrasaq said his
will be loaded onto 23 trucks daily and delivered company had decided to build the plant because
to firms under agreed off-take contracts, the of “incessant” vandalism of its pipelines and theft
NCDMB said. The plant is due to be expanded of oil. The illegal siphoning off of oil from pipe-
to 50,000 bpd at a later stage. lines is a common problem in poverty-stricken
Nigerian Minister of Information and Cul- Nigeria. The oil that is stolen is often processed
ture Lai Mohammed took a tour around the into fuels at illegal refineries.
facility on September 15, highlighting the pro- “The next module will be 25,000 bpd. Then
ject and others like it as key achievements of the the final module will be 20,000 bpd,” the chair-
current administration. The NCDMB’s secretary man said. “At that point we will be loading 120
Simbi Kesiye Wabote noted it would create local trucks every day at peak production, comprising
employment. different products: diesel, kerosene, PMS, HFO
“This vision contributes to the realiыation of and jet fuel.”
our 70% Nigerian content target in the oil and Work on the refinery’s second phase would
gas sector by 2027,” Wabote said. “Our partner- begin shortly after production is started next
ship with Waltersmith and other similar invest- month, he said. He also praised the govern-
ments are some of the levers we are using to ment’s removal of fuel subsidies, as this move
deliver the target growth rate.” had helped create a market of its products.
Despite its ample oil supply Nigeria is reliant “It also facilities our ability to raise financing
on fuel imports as its large state-owned refineries for the next module we will be doing,” the chair-
are fallen into disrepair. The country’s reliance man said.
on overseas fuel has led to comparatively high A number of other modular refineries are
costs for motorists, and has been a drag on its being built in different regions of Nigeria. ™

Week 37 17•September•2020 www. NEWSBASE .com P13