FG begins process to set up proposed modular refineries

Expressions of interest have begun for the setting up of modular refineries being planned by the Federal Government across oil producing states in the Niger Delta, to end illegal and artisanal refining of crude oil, Charles Achodo, special adviser on Niger Delta affairs to Ibe Kachikwu, the minister of state for petroleum resources, has confirmed.

In a telephone interiew with BusinessDay on Thursday March 23, Achodo said that many people were writing to register their willingness to be part of the business development agenda for the region.

He however declined to mention their names.

“I don’t want to mention names here, but a lot of interest is being shown from around the region, be they groups or individual companies,” he said.
According to him, “there is no deadline for expression of interest or time frame for commencement of work on setting up the modular refineries, but we are currently working out the modalities at the ministry of petroleum resources, together with technical teams.”

Achodo further explained that, through a thorough study, the government is currently exploring available technologies around and evaluating the carrying capacity per state, for the modular refineries to be set up.

The intention, he said, is to formalise the sector and regulate it, and that illegal refiners will also have stakes in the whole arrangement, for which essence is to create jobs and clean up the sector and the natural environment around the host communities.

Illegal refining of crude oil has been a source of economic sabotage and environmental degradation throughout the Niger Delta.

In February 2017, the Nigerian Navy said it discovered 40 illegal refineries in the creeks of Warri South Local Government of Delta State, following a major raid after a tip-off that over one million tons of stolen crude oil was being refined in the area.

However, on Thursday March 23, local refinery operators and some stakeholders in Bayelsa State, commended the proposed liberalisation policy on modular refineries by the Federal Government.

Vice president Yemi Osibanjo, had during his last tour of oil communities, announced that the Federal Government would establish modular refineries in the Niger Delta, to drive its development strategy for the region.

Roland Kiente, who operates an artisanal refinery in Bayelsa State, was reported as saying “the policy, if fully implemented, would transform the economic fortunes of the oil bearing communities in the Niger Delta.

“Those of us currently doing the business are pleased with the proposed plan by the Federal Government. We have been advocating for it for long and I have been very vocal in calling on government to come down to our level and assist,” he said.

In his reaction, Kennedy West, special assistant to the Bayelsa Governor on Niger Delta youth matters, noted that the modular refinery concept was a novel concept that could transform the Niger Delta region.

According to him, “it is a strong answer to eliminate unsafe illegal refineries which are dangerous to our environment. The modular refinery is a perfect solution to the dangers of what our people are doing.”

He also noted that legitimising would make room for small investors, who may not have the capital to build big refineries but can conveniently build smaller ones.

 

YANGE IKYAA