The Nigerian Content Development and Monitoring Board (NCDMB) has signed a $10m equity investment agreement with Waltersmith Petroman Oil subsidiary Refining & Petrochemical Company for the construction of a proposed 5000-bpd modular refinery to be located at Ibigwe, Imo State.

The proposed refinery, which will be sited close to and refine Nigerian crude from Ibigwe onshore field in eastern Niger Delta, will produce refined petroleum products for distribution to consumers within a 40km radius of the plant.

Under the Shareholders Agreement and the Share Subscription Agreement, the Board took 30% equity in the modular refinery.

The Executive Secretary of NCDMB, Simbi Wabote said the Board was keen to support the Federal Government’s policy on modular refineries and meet the key objectives of the Petroleum Industry’s Seven Big Wins launched by President Mohammed Buhari in October 2016 and the Economic Recovery and Growth Program (EGRP).

“We have our exit strategy in place to ensure that the refinery reverts back as a fully owned, privately run modular refinery as our role is clearly defined as a catalyst,” said Simbi.

He confirmed that NCDMB in line with its mandate in the NOGICD Act 2010 and as part of the Nigerian Content 10-year strategic roadmap would intervene and fund projects and activities directed at increasing Nigerian Content in the Oil & Gas industry, especially those that utilise available resources in-country, add value and create jobs locally. 

“Establishment of LPG depots, resuscitation of abandoned or establishment of new LPG cylinder manufacturing plants, partnerships on mini-petrochemical plants, and several others fall into the pack of interventions we are willing to look at,” Simbi said.

He restated his belief that at least 10% of Nigeria’s oil production should be refined using modular refineries, assuring that the Board would be willing to consider proposals that meet the guidelines.

Chairman of Waltersmith, Abdulrasaq Isah explained that the modular refinery project was originally conceived to mitigate the incessant vandalism of the company’s crude oil pipelines but feasibility studies later indicated that it could be a viable business because of the significant demand for refined petroleum products. 

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10th July 2018

10th July 2018