EDO MODULAR REFINERIES AND FUEL SUBSIDY ABOLITION – Nigerian Observer

The two modular refineries in Edo State have the capacity to end the importation of petroleum products into the South-South region of Nigeria. The two modular refineries will end fuel subsidies in Nigeria’s south-south region. They will be operational very soon. We expect President Buhari to order them very soon. The Edo Modular Energy refinery is expected to increase crude oil production from 6,000 barrels per day (bpd) to 60,000 bpd. The project will improve the country’s fuel supply and reduce the suffering of Nigerians in all aspects. The projections are that some of its products will be exported to increase foreign exchange earnings and by the time it expands its operations into different phases, the company would be able to meet more than 80 percent of Nigeria’s diesel needs. The investment is also expected to benefit the people of Edo through job creation, increased income and reduced pressure on other refineries.

The continuation of the oil subsidy is not sustainable in view of current economic realities. The 2022 deadline is realistic and its impact could be mitigated with the commissioning of the modular refinery project in Ologbo in the Ikpoba-Okha local government area of ​​the state and the Dupot modular oil refinery, village Egbokor, Iyoba district, Orhionmwon local government, Edo State, Dangote 650,000 BPD refinery, Bua Group refinery, Waltersmith refinery and other modular refineries. Modular refineries in Edo State are able to eliminate oil subsidies in the south-south region of Nigeria. President Buhari is expected to allow these refineries to start up before the removal of fuel subsidies.

The removal of oil subsidies is in the interest of the development of the downstream sector. The government’s decision to stop subsidizing oil by 2022 and this will attract more investment in the sector, especially with the passage of the PIA. I want a level playing field to be provided to everyone in the industry to encourage competition once the subsidy is removed.

Governor Obaseki and two modular refineries will lead to the industrial revolution in Edo State. The oil industry in Edo State received new impetus when the federal government reduced the cost of obtaining a refinery license from $ 1,000,000 (one million dollars) to $ 150,000 (one hundred fifty thousand dollars), among others. Ongoing Modular Refinery Project in Ologbo in Ikpoba-Okha Local Government Area of ​​State and Dupot Modular Oil Refinery, Egbokor Village, Iyoba District, Orhionmwon Local Government, State of ‘Edo, will be at the end of the state’s industrial revolution quest.

Over the past 5 years in Edo State, the production capacity of PSCs has steadily increased, with an average growth of 3%, to represent around 35% of total production. Joint venture agreements contributed about 55% of overall production in the previous year. The production capacity of native oil companies represents about one-eighth of total production. The year-over-year reserve depletion and replacement rate averaged 2.04% and 4.00% respectively. Currently, the reserve life index is approximately 49.03 years. Edo is one of the lucky states to be an oil producing state. This state contributes 2.06% of the country’s total crude oil production. Benin City is currently the capital of Edo and the state has a human force of over 3.3 million people spread across the state’s local government areas.

Dupot Modular Oil Refinery, Egbokor Village, Iyoba District, Orhionmwon Local Government, Edo Modular and Refinery Company Ltd. and AIPCC Energy were close to completing the Edo modular refinery of 5,500 bpd, now at 70%.

Nigeria’s Edo Modular Energy refinery is expected to increase crude oil production from 6,000 barrels per day (bpd) to 60,000 bpd. The project is developed by two Chinese companies; AIPCC Energy Limited and Peiyang Chemical Equipment Company Limited.

Operations are expected to begin between mid-October and December. The first phase will produce 1000 bpd, while the second phase will produce 6000 bpd; with a long-term goal of producing 60,000 bpd. The first phase – which has been completed – will target a production ratio comprising 55% diesel, 38% fuel oil and less than 10% naphtha. “Some of the products will be exported to increase foreign exchange earnings and by then we will expand it in different phases. We would be able to meet over 80% of the diesel needs in Nigeria. This is the vision we have for the next five years, ”said Segun Okeni, Quality, Health and Safety / Community Relations Manager at AIPCC Energy Limited.

The investment will benefit Edo residents through job creation, increased income and reduced pressure on other refineries. This is a key project by the administration led by Governor Godwin Obaseki to recalibrate the state’s industrial base, born out of a Memorandum of Understanding (MoU).

The project, located in Ologbo in the local government area of ​​Ikpoba Okha, would produce from its raw material 50% diesel (500,000 liters), 25% naphtha (300,000 liters) and 20% fuel oil (200,000 liters). 000) liters. The crude is to come from the Nigerian Petroleum Development Company (NPDC) – Oil Mining Lease (OML) 111 facility near Benin City.

The modular refinery project was among the growing list of ongoing legacy projects from Governor Obaseki through a memorandum of understanding with local and international private investors, which included the 55 MW CCTEC Ossiomo power plant, which had been completed and ready to use. The industrial and business park of Benin, whose development is underway and the river port of Benin, for which preliminary work is underway, ”he said.

Governor Obaseki is committed to restoring the state’s economy for prosperity and industrial growth. According to Obaseki, the local content component of the refinery project ensures that citizens of Edo are trained in welding, refinery operation and manufacturing work to enable them to participate in the construction of the refinery as well as to its operation, after its commissioning.

A modular refinery is a prefabricated crude oil processing plant built on skid-mounted surfaces, each structure containing a portion of the entire refinery processing plant, with pore piping to form an easily manageable process. Technically, a modular refinery can be simple or complex, with a capacity ranging from 100 bpsd to 10,000 bpsd. They are not, however, defined by size. They can be transported in modules over long distances and assembled at the desired location. Other advantages of modular refineries include short project completion time, relatively low overall project cost, faster return on investment, can be installed in a small space and could be designed to meet the needs of petroleum products around. of its location.

Inwalomhe Donald writes from Ologbo, Edo State

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