With the current subsidy palava,I've been considering the economic feasibility of refining crude to petrol.Militants and oil bunkerers are know to locally refine cruide oil in the creeks of the Niger delta. I saw an article here on nairaland that puts the crude oil processing cost at N41, and @ d current price of N140 it seems almost certainly ecomically feasible to try this out. The main constraints being obtaining crude and d cost,fg permit and capital.Also bearing in mind that oil prices are likely to rise with unrest in oil producing middle east,sanction and possible US war with Iran and continued growth in Asia.
Nairalanders with the way foread pls let us know
Happy New Year

From a business point of view, how much did it cost them to setup their facilities. From a Legal point of view They are breaking the Law thats the issue, just because they don't have a license. So my question is this how can one get a license for it. From an environmental point of view where do they get their crude from? is their practises fair on the environment.

Most of these issues can be quickly addressed. So the question is how? let me have your ideas.

@ cargoed thnks,
From a video I saw,d local refiners used heated metallic drums with pipes inbetween and some kind of condenser. Of interest to me is that it showed this can be accomplished using locally sourced materials although there are safety concerns and i believe the yield is low. I believe those concerns can be remedied if the process is undertaken by mor literate and skilled person. As for obtaining the crude and license i don't know much but i'm hoping some one inhouse could say

From my research and contacts,
Okay this is the best solution for small scale producers. They need to form a corporation that is all of them come together. Then they need to present their proposal to the Bank of Industry. For a Loan of N100m @ 5% using their present location as assets if need be. This will be used to build small refinaries like 1000b/day and completed within 3mths.

From DPR Side the official application is USD50k non refundable and the operating license is USD100K please confirm on their website.


Now you see they need the services of consultants to put all these through. Anyway you see why many don't bother.

@ cargoed thanks
with your analysis theres no such thing as small scale oil refining option in Nigeria, your either big time or not at all into it, no wonder we're still importing pms. Imagine $150k just to obtain the license.