Integrated Oil and Gas $160m modular refinery to come on stream  by end 2016

Integrated Oil and Gas Ltd has  said that the company’s $160 million  modular refinery would come on stream before the end of 2016.

Speaking to journalists Anthony Iheanacho, the Group Managing Director of the  company  it has been given provisional licence to start preliminary work for a 20,000 barrel capacity modular refinery. He said the capacity would be scaled  up in future so that it can  process larger volume of crude oil.

The 20, 000 barrel capacity refinery would produce Automated Gas Oil (AGO) kerosene, export quality aviation fuel, fuel oil and the like. He however said that the refinery does not have the capacity to produce Petroleum Motor Spirit (PMS).

The front end Engineering Design( FEED) of the  refinery has been submitted to the  Department of Petroleum (DPR)

According to Iheanacho, who conducted some journalists on a tour of the proposed refinery site at Tomaro Island Port off Takwa Bay, Lagos, said preliminary approval had been received from the Department of Petroleum Resources (DPR).

Works he said had commenced on the Environmental Impact Assessment (EIA) and other necessary requirements to facilitate the final approval for the refinery.

Iheanacho said that the funds for the project would be sourced from both foreign and local financial institutions

“ Tomaro island with about 90 hectares is designed as one-stop shop which will comprise of refinery, flour mill, ship repair yard, helipad site and resort centers.

“It will also create massive employment for our teeming youths. Crude would come to the refinery through vessels for refining, ‘’ Iheanacho said.

The  integrated Oil and Gas boss said that the company was still awaiting some documents to start construction on the island contrary to claims by a resident, Mr Raymond Gold, who wrote a petition that work had started at the site.

According to him, we have not even started construction by the way; we are just going through the pre-application process.

“I am ready to stand by the truth and what is right at all times. I am not the one to go and appropriate property to build a refinery.

“I am not going to put my hands in your pocket and force money out of it. I am not going to force you to tell me what you do not know about building refineries.

“ Refineries are very important infrastructure in the country and it will enhance the image and prestige of the country.

“If I think that I can articulate a business plan, that I can talk to the bank and they will then lend me money to build the refinery, while will I not do it? I do not want anybody to be deceived or fooled by fake or funny stories,” he said.

He  however, appealed to Federal Government to support indigenous oil companies who are striving to grow the oil and gas sector, adding that government should also support local companies with funding.

“ We are in absolute support of growing indigenous capacity in every facet of our oil and gas industry.

“This is because the local companies are paying their taxes, reinvesting their capital and creating enormous job opportunities for the larger community.

He said that with such encouragement Nigerian participation in the industry will rise significantly in line with government’s aspirations with the Nigerian Content Act.

Olusola Bello