Walter Smith Petroman Oil Limited, an indigenous oil company is proposing a 5,000 barrels per day refinery that would cost it about N6 billion or $40 million.
The refinery would concentrate on the production of jet A fuel and Automotive Gas Oil (AGO) the two components of the downstream sector of the petroleum industry that have been deregulated.
The company said it is however still working out details of the refinery. The feasibility study for the project has been completed while its technical and commercial reviews have also been conducted. Abdul rasaq Isa, chairman and chief executive of Walter Smith Petroman Oil limited, who disclosed this yesterday, explained that 51 per cent of the yield would be for crude export while the remaining 40 per would be for the refinery.
The markets for the products are available in the country he said.
The new innovation according to him, came to being because of persistent security threats that have adversely affected the operation of the company.“If there is refining capacity when we are stocked and not able to transport crude for export because of pipeline breaks or shut in by militants, what is produced could be sent to the refinery”.
If it is eventually established, Walter smith would be the second indigenous company to set up a refinery to process the crude oil on its production location.
The other company being Niger Delta Exploration and Production Company, which is currently refining 1000 barrel per day of AGO.
According to Isa, Walter Smith Petroman Oil Limited the operator of Oil mining Lease OML 16 has completed the Ibigwe field development, investing about $180 million in a five well drilling and one work over campaign including the commissioning of 15,000 barrels per day flow station. The company which is 10 years old has achieved a cumulative production of 2.5 million, while it is currently producing 4000 barrels per day.
The Ibigwe field is projected to be producing about 7,000 barrels per day after the ongoing production optimisation process is concluded. The company continues to invest in potential assets that can enhance its portfolio.
Such assets include OML 34 from which Shell Petroleum Development Company and its joint venture companies divested. It invested $600 million in the consortium that acquired the 45 per cent equity.
OLUSOLA BELLO
