Seven licensed refineries with the ability to process 181,000 barrels
of crude oil per day (bpd) have progressed towards completion stage in
their attempt to contribute to Nigeria’s self sufficiency in petroleum
For example, the 5,000 bpd Waltersmith Refining & Petrochemical
Company Limited’s modular plant, which is capable of producing
naphtha, kerosene, diesel, and low pour fuel oil has made significant
progress the Company’s Approval To Construct (ATC) has been granted by
the Department of Petroleum Resources (DPR) while Engineering ,
Procurement and Construction (EPC) contract terms have been agreed
with VELEM.
The Environment Impact Assessment (EIA) review session with DPR has
been conducted and the company is closing out funding with Africa
Finance Corporation.
Also the Nigerian Content Development and Monitoring Board (NCDMB) on
Friday in Lagos signed a $10 million equity investment agreement with
Waltersmith Refining & Petrochemical Company Limited for the
construction of 5,000 barrels per day modular refinery to be located
at Ibigwe, Imo State.
Other companies, which have made similar progress are Clairgold Oil &
Gas Engineering Limited, Niger Delta Petroleum Resources, Dee Jones,
Energia Limited, Southfield Petrochemical & Refinery Limited, and
Starex Petroleum Refinery Limited.
The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote and the
Director of Finance and Personnel Management, Mr. Isaac Yalah signed
on behalf of the Board while the Chairman of Waltersmith, Mr.
Abdulrasaq Isah and the Executive Vice Chairman, Mr. Danjuma sale
signed for the company.
Under the share holders Agreement and the Share Subscription
Agreement, the Board took 30 percent equity in the modularl refinery.
The Executive Secretary of NCDMB, Engr. Simbi Wabote said the
investment decision was in line with the Board’s vision to be the
catalyst for the industrialization of the Nigerian oil and gas
industry and its linkage sectors.’ The Board was also keen, he added,
to support the Federal Government’s policy on modular refineries and
meet the key objectives of the Petroleum Industry’s seven Big Wins
launched by President Mohammed Buhari in October 2016 and the Economic
Recovery and Growth Program (EGRP).
According to him, “we have our exit strategy in place to ensure that
the refinery reverts back as a fully owned, privately run modular
refinery as our role is clearly defined as a catalyst.”
He also commended Waltersmith for developing a bankable proposition,
stating that “they sorted our the project feasibility, regulatory
approvals, and other pertinent details before reaching out to the
Board with the value they are bringing to the table and a clear
definition of the support they seek.”