By John Ikani
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has disclosed that the Federal Government of Nigeria is perfecting plans to increase domestic refining capacity to 1.4 million barrels per day in the next five years.
Engr. Wabote made the disclosure on Monday while delivering his welcome address at the maiden edition of the Nigerian Content Midstream/Downstream Oil & Gas Stakeholders Summit with the theme, ‘Maximizing Potentials in the Midstream and Downstream Oil and Gas Sector – A Local Content Perspective’.
The two-day summit being held at the Lagos Continental Hotel is based on the NCDMB’s 10-year strategic roadmap to achieve 70 per cent Nigerian Content target in the oil and gas industry by the year 2027.
It seeks to articulate a coherent strategy to maximize the Local Content potentials of massive investments in the Midstream and Downstream sector of the Nigerian Oil and Gas Industry.
What the local content boss is saying
According to Engr. Wabote, Nigeria will achieve refining capacity to 1.4 million barrels per day in the next five years by rehabilitating the existing four national refineries and providing strategic support for setting up private-owned greenfield and modular refineries in the country.
“Combined refining capacity of more than 1.4mbpd is expected from four focus areas within the next five years.
“The focus areas include the rehabilitation of the existing four national refineries, co-location of new refineries, construction of greenfield refineries and construction of modular refineries”
“About 400,000bpd is expected from the rehabilitation of NNPC refineries in Port Harcourt, Warri, and Kaduna using target performance of not less than ninety per cent of nameplate capacity.
“The greenfield element of the roadmap covers the 650,000bpd Dangote Refinery in Lagos and the 200,000bpd BUA Refinery in Akwa Ibom,” said Wabote.
It is worthwhile to note that the refining of 1.4million barrels per day is approximately 2.555billion barrels in five years.
The Brent at 5:19pm Nigerian time on Monday was sold at $113.11 on the international market.
If exported, the 2.555billion barrels of crude oil could fetch the country about $289bn or N120trn in five years.
Speaking on the theme of the summit, the NCDMB boss said there is opportunity to maximize opportunities in the midstream and downstream sectors of the oil and gas industry.
He added that the employment factor in the midstream and downstream sectors of the industry is higher in number and of a longer duration when compared to that of the upstream sector.
“This provides means to absorb outputs of our Human Capacity Development programs in the form of job opportunities. The entry barrier for businesses to partake in the midstream and downstream sectors of the industry is relatively lower compared to that of the upstream sector,” he said.
The ES went on to note that “There are vast business opportunities in the midstream to downstream sectors ranging from processing, transportation, storage, and distribution that could be started on a small scale and later scaled up to bigger enterprises thereby growing in-country capacities and capabilities.”
Engr. Wabote added that the direct social impact brought by a productive and efficient midstream and downstream sector of the oil and gas industry is another potential that needs to be maximized.
“There is a sense of pride for any citizen who has the confidence that he or she could take availability of energy sources for granted in whatever form such as electricity, fuels, gas, and others. These have direct correlation to quality of life, productivity, life expectancy, and social harmony,” he said.
On modular refineries, the NCDMB boss said they are serving as a catalyst to enhance the realisation of the refining roadmap, saying that its partnership with Waltersmith resulted in the delivery of the 5,000barrels per day modular refinery in Imo State currently in operations.
“Next in view is the 2,500 barrels per day Duport Modular Refinery located in Edo State due for commissioning by this year. Others under construction are the 2,000 barrels per day Atlantic Refinery and the 12,000barrels/day Azikel Hydro-skimming Refinery both in Bayelsa state,” he added.
Apart from the modular refineries, he said the board was also in partnership with Bunorr Integrated Energy Limited for the establishment of 48,000 litres/day Base Oil Production Facility (via recycling of used engine oil) in Port Harcourt, Rivers State, adding that clean diesel was also one of the by-products of the processing plant which due for inauguration before year-end.
According to him, construction activities were ongoing at the Eraskon Lube Oil factory in Gbarain, Bayelsa State sequel to the board’s partnership for the establishment of a 64,000liters/day lubricating oils blending plant.
“Factory acceptance test is ongoing for the major equipment prior to site installation. The Eraskon brand of engine oil, gear oil, hydraulic fluids, and other grades of lubricants is set to address the lubricants needs in the catchment states of Bayelsa, Rivers, Imo, Delta, and beyond ‘’, he said.
He also said NCDMB is in partnership with NNPC to construct a 50,000 liters petroleum products terminal in Brass Island to support storage and distribution of white products in the coastal states of the country.
