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The first stage of Waltersmith’s modular refinery was commissioned last November (Photo: DPR)

NCDMB takes 30% transitional

stake in modular oil refinery

NIGERIA NIGERIA’S National Content Development The modular refinery’s first phase was com-
Monitoring Board (NCDMB) has said it is missioned last November. It will be capable
investing in a small-scale oil-refining project of turning out 27mn litres per year of diesel
led by a local company, Waltersmith Petroman fuel, kerosene, naphtha and residual fuel oil
Oil Ltd. for domestic consumption. The second phase,
Simbi Wabote, the executive secretary of which may be completed by late 2022, will be
the board, recently confirmed that NCDMB able to produce gasoline, aviation fuel and LPG.
had taken a 30% stake in the first stage of the
modular refinery that Waltersmith has built at Support for modular plants
the Ibigwe field in Imo State. The government Wabote and Isa were speaking shortly before
agency has paid $10mn for its minority holding the head of Nigeria’s Department of Petroleum
in this project, which encompassed the con- Resources (DPR) expressed support for the con-
struction of a plant with a throughput capacity struction of more modular oil refineries.
of 5,000 barrels per day (bpd), he told Africa Oil Sarki Auwalu, the director and CEO of DPR,
+ Gas Report. told reporters last week that he believed small-
Wabote stressed, though, that NCDMB scale refineries could help improve fuel supplies
would be a transitional investor. This means on the domestic market. The agency is currently
that the board will no longer have a stake once considering proposals for the construction of 38
first-phase work on the plant is completed, he modular refineries with throughput capacities
explained. ranging from 5,000 bpd to 30,000 bpd, he noted.
But he also said that NCDMB was interested Auwalu also described modular projects as
enough in the project that it hoped to play a role a good alternative to the illegal refining endeav-
in the construction of the modular refinery’s ours that have plagued the country’s oil-produc-
second stage. “Yes, we will continue,” he said. He ing regions, saying that above-board projects
described Waltersmith as a satisfactory part- had a better chance of creating jobs and bene-
ner, saying that the company had “done what fitting local communities. “DPR is a business
they said they would do, and we are happy with enabler and opportunity provider. We create
them.” the business of oil and gas and ensure that it is
For his part, Waltersmith’s board chairman sustained,” he declared. “I am calling on Nigeri-
Abdulrasaq Isa told Africa Oil + Gas Report that ans to come invest in this sector, bring more. The
he expected to work with NCDMB on the next sector has been the risk, and if you’re afraid that
stage of the project, which will bring the mod- you can’t refine, don’t go and [make an] illegal
ular refinery’s capacity up to 25,000 bpd. “Yes, refinery. Come and do legal refining, and we are
they are working with us on the second phase,” ready to give you [a] licence.” ™
he said.

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