50,000 bpd modular refinery begins operations in Imo October
…as NCDMB wants 10% of Nigeria’s crude refined by modular refineries
A50,000 barrels per day (bpd) modular refinery located in Imo State is getting set to roll by October 2020. The refinery, currently at 98 percent completion stage, is touted to be one of the fastest modular refinery projects in Nigeria. The first phase will, however, begin with 5,000 bpd and load 23 trucks daily.
The plant located at Ohaji/egbema area of Imo will increase its refining capacity to 30,000 bpd in 2021, and gradually up it to 50,000 bpd, according to Chikezie Nwosu, its chief executive officer, who said all hands are on deck to deliver on the target date.
Officials of the Federal Government led a team to inspect the site and ended up applauding Waltersmith Petroman Oil Limited and the Nigerian Content Development and Monitoring Board (NCDMB) for a speedy construction and effective partnership that would make the project possible within two years.
Minister of information and culture, Lai Mohammed, conveyed the commendation after a tour of the project in company of Governor Hope Uzodimma, and minister of state for education, Chukwuemeka Nwajiuba, and Simbi Kesiye Wabote, the executive secretary of NCDMB.
Construction work on the modular refinery started in October 2018 and will begin operations on October 14, 2020, having concluded off-take arrangements with select firms.
The minister stated that the completion of Waltersmith modular refinery and the conceptualisation of similar projects in Bayelsa were key achievements of President Muhammed Buhari-led administration.
Mohammed described modular refineries as key to meeting the Federal Government’s agenda of increasing local refining capacity, enhancing value addition to the hydrocarbon resources and employment generation. He gave the assurance that the government through the ministry of petroleum resources and relevant agencies would provide Waltersmith with all necessary support it needs to operate and grow sustainably.
In his remarks, Wabote expressed satisfaction with the 30 percent equity invested by the NCDMB in the refinery. He said that the project had several benefits, including generation of direct, indirect, and induced employment opportunities for management staff, plant operators, technicians, drivers, cleaners, suppliers, security personnel and others.
Wabote canvassed that at least 10 percent of Nigeria’s oil production should be refined through the modular refineries. He noted that an average of 10 direct jobs were created for every 1,000 barrels/ day capacity of modular refinery, hence over 2,500 direct jobs and over 25,000 indirect jobs can be created if 10 percent of Nigeria’s production is refined using modular refineries.