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Niger Delta: Local Refiners Seek Waiver From Nigerian Govt To Set Up Modular Refineries

May 19, 2021
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Artisanal oil refiners have urged the Federal Government and other key stakeholders in the oil and gas sector to grant them waivers to fast track the licensing process of modular refineries in the country.

This was part of the resolutions stated in a communique issued after the National Summit on the Integration of Mini/Modular Refinery Operations into the nation’s Oil and Gas sector, held in March.

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The local refiners also urged state governments to establish at least one standard oil modular refinery to make crude oil products available locally.

Other resolutions arrived at was that: “That Federal Government should continually create the platform to engage with the mini (illegal) refiners with the aim to mainstreaming them into the formal processes.

“That the Ministry of Petroleum Resources should establish a desk under the relevant department (Midstream Department) for modular and mini refiners’ operations and develop framework to organize the mini refinery operators into legal operations as it obtains in the Mining Sector.

“That a Committee be setup comprised of the Office of the Vice President, Office of the Senior Special Assistant to the President on Niger Delta Affairs, Ministry of Budget and National Planning, Ministry of Petroleum Resources and its agencies…

“That the DPR should develop guidelines for licensing of mini refining operations, and prescribe graduated fees commensurate with the production capacity.

“That a special fund be set up by the Central Bank of Nigeria in collaboration with Sovereign Wealth Funds, Multi-lateral funds and the Federation Account as was done in the Power Sector reforms to address Modular and Artisanal refineries, and refunds be structured as was done in the power sector and Paris club funds.

“That the Petroleum Training Institute (PTI) Warri, Federal University of Petroleum Resources (FUPRE), Ahmadu Bello University, Zaria (ABU) and NASENI should be engaged and on their own engage the mini refinery operators on standard construction of modular and mini refineries which shall be subject to approval by Standard Organization of Nigeria (SON) and other relevant bodies before it is deployed for purchase by domestic artisanal refiners;

The communique was jointly signed by Minister of State for Budget and National Planning, Clem I. Agba; Sen. Ita Enang, Senior Special Assistant to the President on Niger Delta Affairs; Dr. Babayo Ardo, Permanent Secretary, Ministry of Niger Delta Affairs, Abuja; Engr. Kamoru Busari, Director, Ministry of Petroleum Resources; Dr. Kabiru Nakaura, Chairman of Board, National Bureau of Statistics.

Others are: Prof. M. Haruna, Executive Vice Chairman, NASENI; Idris O. Musa, Director General, NOSDRA; Colonel Millian Dixon Dikio, Interim Administrator/CEO, Presidential Amnesty Office; Mr. Effiong Akwa, Sole Administrator, NDDC; Dr. H. A. Adimula, Ag. Principal/CEO, PTI; Dr. Akenn Sunday M, DPR; Prof. I.A.M. Dabo, Mini Refinery Development Research, ABU, Zaria; Godwin Sunday, National Chairman, DROAN; and Engr. Dr. Omonig Anthony Abiye George, Head, Oil & Gas NEITI.

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