The Federal Government has stated that over 2.555 billion barrels of crude oil worth over N120 trillion will be refined locally in the next five years.
Simbi Wabote, Executive Secretary of the Nigerian Content Development Monitoring Board, made the announcement on Monday during a conversation with our correspondent on the sidelines of the board’s ongoing Nigerian Content Midstream-Downstream Oil and Gas Summit 2022 in Lagos.
According to him, the rehabilitation of the existing four national refineries, co-location of new refineries, construction of greenfield refineries, and construction of modular refineries as part of the Ministry of Petroleum Resources’refining roadmap over the next five years will result in a combined refining capacity of more than 1.4 million barrels per day.
In five years, refining 1.4 million barrels per day equals 2.555 billion barrels. Brent was trading at $113.11 on the international market at 5:19 p.m. Nigerian time on Monday. The 2.555 billion barrels of crude oil may bring the country $289 billion (N120 trillion) in five years.
“The Ministry of Petroleum Resources under the leadership of President Muhammadu Buhari has rolled out the Refining Roadmap with emphasis on rehabilitation of the existing four national refineries, co-location of new refineries, construction of greenfield refineries and construction of modular refineries. From all of these, the government expects more than a 1.4million barrels per day within the next five years”, he said.
According to Wabote, the rehabilitation of the NNPC refineries at Port Harcourt, Warri, and Kaduna is expected to yield 400,000bpd, with a target performance of not less than 90% of nameplate capacity.
The roadmap’s greenfield component includes the mechanically complete 650,000bpd Dangote Refinery in Lagos and the 200,000bpd BUA Refinery in Akwa Ibom State.
In terms of modular refineries, he stated that the NCDMB is acting as a catalyst to accelerate the implementation of the refining strategy.
“Our partnership with Waltersmith resulted in the delivery of the 5,000barrels per day modular refinery in Imo State currently in operations”, he said.
He mentioned the 2,500 barrels per day Duport Modular Refinery in Edo State, which is set to open this year.
Other refineries under construction in Bayelsa State include the 2,000 barrels per day Atlantic Refinery and the 12,000 barrels per day Azikel Hydro-skimming Refinery.
The NCDMB chief stated that the board, in collaboration with the NNPC, plans to build a 50,000-liter petroleum products terminal in Brass Island to enable the storage and delivery of white products across the country’s coastal states.
Aside from the modular refineries, he stated that the board was also working with Bunorr Integrated Energy Limited to establish a 48,000 litres/day Base Oil Production Facility (via recycling of used engine oil) in Port Harcourt, Rivers State, and that clean diesel was one of the by-products of the processing plant, which was set to open before the end of the year.
He stated that construction efforts at the Eraskon Lube Oil factory in Gbarain, Bayelsa State, were underway as a result of the board’s collaboration for the establishment of a 64,000liters/day lubricating oil mixing plant.
“Factory acceptance test is ongoing for the major equipment prior to site installation. The Eraskon brand of engine oil, gear oil, hydraulic fluids, and other grades of lubricants is set to address the lubricants needs in the catchment states of Bayelsa, Rivers, Imo, Delta, and beyond‘’, he said.