6,000bpd Edo Refinery for commissioning September on DPR’s final approval

The 6,000 barrel per day (bpd) capacity Edo Refinery and Petrochemicals, a private modular refinery project that enjoys the support of the Federal and State government, is billed for commissioning next month pending approval by the regulator.

During a tour of the project Thursday at Ologbo, Ikpoba Okha Local Government Area of Edo State by BusinessDay, the company said the project had reached 95 percent mechanical completion and pre-commissioning activities were expected to commence by the end of August.

“This indeed is a remarkable feat for us and Nigeria, it will be the quickest modular refinery delivered in less than one year construction started,” notes Michael Osime, chairman of the company, in a speech read by a representative.

The Edo Refinery and Petrochemical Company is owned by AIPCC Energy Limited, a joint venture between AFCOM and Peiyang Chemical Equipment Company of China (PCC) and was built at the cost of $10.2 million. It produces diesel, Naptha and fuel oil (LPFO).

The Federal Government supported the project by granting duty waivers on refinery equipment and components, while the state government provided N700 million in debt financing repayable when production commences. PCC is the engineering, procurement and construction (EPC) partner.

“This was the catalyst to the project to ensure quick take-off and it is a beneficiary of the Edo State government incentive programme to attract manufacturing companies to locate in the state. This led to the Nigerian Chinese Joint Venture Company AIPCC Energy Limited,” Osime states.

According to Osime, following the experience gained in the first phase of the refinery, AIPCC had commenced plans to build a 30,000bpd refinery as an expansion at the cost of over $64 million. PCC has agreed to finance 40 percent of the project cost.

Tim Tian, business director at PCC, says the refinery is a way Nigeria and China can strengthen business relationships and even lead to skill transfer, as the company is helping students at Auchi Polytechnic improve their technical skills.

Edobor Iyamu, senior special assistant to the president on Niger Delta Affairs, in the office of the Vice President, notes he was pleased at the execution, and calls for the success of the Federal Government initiative to replace artisanal crude oil refining with modular refineries, saying similar success has been recorded in other places leading to three modular refineries now almost ready to start producing.

AIPCC has now applied to the NNPC to supply it crude for refinery and has commenced crude supply discussions with marginal field owners, as the refinery is designed to use various grades of crude, Osime says.

When completed, the Edo Refinery and Petrochemicals aims to supply 20 percent of Nigeria’s diesel, saves over $350 million in foreign exchange yearly, earns over $125 million from export of Naptha and meets Nigeria’s 100 percent LPFO demand.