Bayelsa, Rehoboth Sign MoU for 60,000bpd Refinery

Bayelsa State government has signed a Memorandum of Understanding (MoU), with Rehoboth Refinery for the establishment of its 60,000 barrels of crude per day modular refinery.

Speaking in Lagos at the recent signing ceremony, the state’s Commissioner for Trade, Industry and Investment, Kemela Okara said the partnership was part of the efforts to boost the country’s local refining capacity also grow the economy of the state.

“As state government, our fundamental role is to do everything possible and ensure private sector do what they do best. The milestones and efforts Rehoboth have made over the years in ensuring that they can kick -off the modular project is quite remarkable. On our part, we thought it best to signal our commitment to what they can achieve by signing the MoU,” Okara said.

“Today, the Governor of Bayelsa state, Dickson, has consistently signal his commitment and the state commitment to attracting investors into the state, especially in areas where we have comparatively economic advantage and in that light, the steps we are taken will signal to private investors that Bayelsa state is friendly and ready to collaborate with investors not only in refinery sector. We are calling for investors to carry out their own work (due deligience) and clear in their minds on what it sort to achieve,” saying the governor was ready to put all it takes to make businesses work,” Okara added

Also speaking, the Chief Executive Officer of Rehoboth refinery, Joe Attueyi explained that the project, which would be completed within two years, would cost about $120 million.

“We have come with a positive mindset to build the project because we believe that partnership creates value. Also, we thought of partnering the communities if we must have a successful business. We went to purchase the land from the community and paid to the community, and today they are friends. The company believes that it is beyond building a 60,000bpd refinery, but we are looking to create value for the community, the state and general economy of Nigeria. We have gone far and have been approved by the regulatory body, while the state government has facilitated the acquisition of our land occupancy,” he explained.

“Currently, equity capital has been raised for the project and it remains the debt size which is about 60 percent of that value and we have indicating offer for that debts, which we are working to finalise and putting some guarantee in place,” he added.

“We had earlier started with a first phase of 12,000 bpd and that was the initial licensed to establish, at $120 million for the project. However, it needs certain incentives from the Federal Government, which the Bayelsa is supporting us to achieve. The project is scheduled for 18 months and six months for contingencies. The problem is that we don’t know when we would get the government incentives to close and the local banks are not ready to finance projects of such nature,” he said.