• Thursday, March 28, 2024
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FG urged to legalise mini refineries to boost in-country refining capacity

FG urged to legalise mini refineries to boost in-country refining capacity

Minister of State for Budget and National Planning, Clem Agba, and senior special assistant to President Muhammadu Buhari on Niger Delta Affairs, Ita Enang, among other stakeholders have made a case for the integration of mini/ modular refineries in the Niger Delta into in-country oil refining programme of the oil and gas sector.

They made the advocacy at a national summit on the integration of mini/modular refinery operations which was recently held in Abuja. The summit, which was declared open by Vice President, Yemi Osinbajo resolved that the Federal Government should continually create the platform to engage with the mini (illegal) refiners with the aim of mainstreaming them into the formal processes.

It is expected that upon successful formalisation of the mini refineries, part of the funds budgeted for security agencies and pipeline protection could be applied in setting up small scale mini/modular refineries whereby integrated practitioners would now be employed to refine for the nation.

Some of the resolutions reached and contained in the communiqué issued at the end of the summit are: “That the Ministry of Petroleum Resources should establish a desk under the relevant department (midstream department) for modular and mini refiners’ operations and develop framework to organise the mini refinery operators into legal operations as it obtains in the mining sector.

Read Also: Modular refineries and Nigeria’s energy quicksand

“The National Assembly and other relevant stakeholders be engaged to ensure mainstreaming the relevant legal framework into the national legal system to ensure seamless integration of mini and modular refineries into the national economy by addressing issues addressed herein in the Petroleum Industry Bill. This will be consistent with what is contained in the Minerals and Mining Act 2007, particularly Chapter VI;

“That the DPR should develop guidelines for licensing of mini refining operations, and prescribe graduated fees commensurate with the production capacity;

To ensure national technical regulations and standards in the design, testing and construction of all critical infrastructure, as well as safety and compliance with all extant environmental laws, regulations and standards in the petroleum industry, are adhered to in all phases of the mini and modular refineries;

That individuals and organisations setting up or establishing refineries in the region should be encouraged to partner with local mini refiners for ease and smooth integration, knowledge sharing and technology transfer;

That NNPC and DPR should facilitate provision of feedstock (crude oil) to modular and mini refiners who shall pay for same in Naira for the purpose of refining and selling it to NNPC provided their products meets the required specifications.