naptu2:

See, this is one of the reasons why we have lots of problems in Nigeria. Does shortage of refineries in the Niger-Delta = no refineries in northern Nigeria?

More refineries should be built in the delta, just as more refineries should be built in northern Nigeria. There is no sensible reason why we shouldn't have refineries in northern Nigeria. It is not an empty wasteland as some people think People and businesses who use petrol, diesel and kerosene are in abundance in northern Nigeria (that's why Niger built a refinery near the border to tap into that market, but I don't think we should let them. We should build more facilities to ensure that this market is adequately served).

solomon111: I don't have any problem with building refineries in the north,as long as refineries are sufficient in the oil-producing states.
We can always satisfy the north with petroleum products without building refineries there at the expense of the niger-delta.

elume2020: Let me make some observations about the choice of locating this refinery in Ondo state. I have a projeect under construction in the Creeks of Ondo state, so i have been able to understudy the environment very well. From the on-going argument, Ondo state is amoung the Oil prooducing state in Nigeria, Ondo state has bitument for road construction and other uses, Ondo state has abundance of sand the type used as raw material for glass production, and lots more resources. The proximity of Ondo state to it market target is key. Ondo state shares boundary with Ogun state, an industrial hub, Edo state, connecting it to the South-southern part of the country for sales, Kwara, Through Ekiti state, Kogi State connecting it easily to the North central part of the country, Osun, Oyo are at stone throw to Ondo state and Lagos the commercial center. Delta, Ogun, Lagos, Rivers, Calabar, Akwa Ibom, Bayelsa can all be connected to by water ways for discharging of content to ports. With regards to militancy, Just like in every part of the Niger delta, Ondo state is not an exception, as a matter of fact the highest cache of weapons was recovered from Ondo state creeks. But the interesting thing here is, once you go into agreement with them and don't default you won't have a problem with them. Ondo State has oil blocks, the Bonga oil field is noot actually far (nautical miles) from Ondo shore, though its ceded to another state (politics). Crude oil oil could easily be transported, refined and discharged to nearby state with heavy industrial activities that requires the fractional by-product of crude, remember its not only petrol (PMS), Diesel (AGO) and kerosene (DPK) that are products of crude oil and many of these industries are concentrated in Ogun (Agbara), Oyo (Ibadan), Lagos (Mainland and Island), Kogi (Obajana) and lots more. Also don't be surprised if Alhaji Dangote buys up the Oluwa Glass industry due to his presence in the state and become the major supplier of glass to the construction industry, Cladding of building, which is in vogue now and for the manufacturing industries in the future. In conclusion, Locating the refinery in Ondo state is not a bad decision as we know feasibility studies would have been carried out and not sentiment studies. He is a businessman and not a politician. His businesses are for profit first, sustainability then philanthropy, where proximity to raw materials and market would have been critically analysed while putting into consideration the environment, security and other socio-economic factors.

Nairaplus: But, why Ondo? Maybe he's afraid of militancy in the Niger Delta!
Militants fit migrate o! Or even self, dem fit evolve! Make una help me tell am.

elume2020: Let me make some observations about the choice of locating this refinery in Ondo state. I have a projeect under construction in the Creeks of Ondo state, so i have been able to understudy the environment very well. From the on-going argument, Ondo state is amoung the Oil prooducing state in Nigeria, Ondo state has bitument for road construction and other uses, Ondo state has abundance of sand the type used as raw material for glass production, and lots more resources. The proximity of Ondo state to it market target is key. Ondo state shares boundary with Ogun state, an industrial hub, Edo state, connecting it to the South-southern part of the country for sales, Kwara, Through Ekiti state, Kogi State connecting it easily to the North central part of the country, Osun, Oyo are at stone throw to Ondo state and Lagos the commercial center. Delta, Ogun, Lagos, Rivers, Calabar, Akwa Ibom, Bayelsa can all be connected to by water ways for discharging of content to ports. With regards to militancy, Just like in every part of the Niger delta, Ondo state is not an exception, as a matter of fact the highest cache of weapons was recovered from Ondo state creeks. But the interesting thing here is, once you go into agreement with them and don't default you won't have a problem with them. Ondo State has oil blocks, the Bonga oil field is noot actually far (nautical miles) from Ondo shore, though its ceded to another state (politics). Crude oil oil could easily be transported, refined and discharged to nearby state with heavy industrial activities that requires the fractional by-product of crude, remember its not only petrol (PMS), Diesel (AGO) and kerosene (DPK) that are products of crude oil and many of these industries are concentrated in Ogun (Agbara), Oyo (Ibadan), Lagos (Mainland and Island), Kogi (Obajana) and lots more. Also don't be surprised if Alhaji Dangote buys up the Oluwa Glass industry due to his presence in the state and become the major supplier of glass to the construction industry, Cladding of building, which is in vogue now and for the manufacturing industries in the future. In conclusion, Locating the refinery in Ondo state is not a bad decision as we know feasibility studies would have been carried out and not sentiment studies. He is a businessman and not a politician. His businesses are for profit first, sustainability then philanthropy, where proximity to raw materials and market would have been critically analysed while putting into consideration the environment, security and other socio-economic factors.

Mad Cow: Why would he build the refinery in Ondo State?! Does Ondo State have oil wells or does he intend to run pipes from Ondo to the South-South?!

elume2020: Let me make some observations about the choice of locating this refinery in Ondo state. I have a projeect under construction in the Creeks of Ondo state, so i have been able to understudy the environment very well. From the on-going argument, Ondo state is amoung the Oil prooducing state in Nigeria, Ondo state has bitument for road construction and other uses, Ondo state has abundance of sand the type used as raw material for glass production, and lots more resources. The proximity of Ondo state to it market target is key. Ondo state shares boundary with Ogun state, an industrial hub, Edo state, connecting it to the South-southern part of the country for sales, Kwara, Through Ekiti state, Kogi State connecting it easily to the North central part of the country, Osun, Oyo are at stone throw to Ondo state and Lagos the commercial center. Delta, Ogun, Lagos, Rivers, Calabar, Akwa Ibom, Bayelsa can all be connected to by water ways for discharging of content to ports. With regards to militancy, Just like in every part of the Niger delta, Ondo state is not an exception, as a matter of fact the highest cache of weapons was recovered from Ondo state creeks. But the interesting thing here is, once you go into agreement with them and don't default you won't have a problem with them. Ondo State has oil blocks, the Bonga oil field is noot actually far (nautical miles) from Ondo shore, though its ceded to another state (politics). Crude oil oil could easily be transported, refined and discharged to nearby state with heavy industrial activities that requires the fractional by-product of crude, remember its not only petrol (PMS), Diesel (AGO) and kerosene (DPK) that are products of crude oil and many of these industries are concentrated in Ogun (Agbara), Oyo (Ibadan), Lagos (Mainland and Island), Kogi (Obajana) and lots more. Also don't be surprised if Alhaji Dangote buys up the Oluwa Glass industry due to his presence in the state and become the major supplier of glass to the construction industry, Cladding of building, which is in vogue now and for the manufacturing industries in the future. In conclusion, Locating the refinery in Ondo state is not a bad decision as we know feasibility studies would have been carried out and not sentiment studies. He is a businessman and not a politician. His businesses are for profit first, sustainability then philanthropy, where proximity to raw materials and market would have been critically analysed while putting into consideration the environment, security and other socio-economic factors.

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Covenant Ground Refinery Project – OK Free Trade Zone

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The Oil economy the world over is a capital intensive and technology driven business where only formidable, well focused, and properly motivated organizations can play a formidable role in the exploration or production of petroleum products. This role is what motivates Covenant Ground Group’s flag ship subsidiary Covenant Ground Refinery Limited. The company is organized to be among the first privately owned refineries to successfully plan, build and operate in Nigeria and is jointly owned by the Ondo State Government, which holds a marginal equity of 5%. Covenant Ground Refinery Limited is structured as a Hi-Tech Modular Integrated Crude Oil Refining Facility rated to operate at a full capacity of 150,000 barrels per day. The refinery is designed to produce multiple primary products which would include: Premium Motor Spirit (P.M.S), Automotive Gas Oil (A.G.O), Dual Purpose Kerosene (D.P.K) / Jet fuel (, (JP-A), LPG, Naphtha and Hydro-Heater.

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The facility would include a fertilizer – processing unit, producing Ammonia and Urea; and Asphalt. The proposed location for the Covenant Ground Group Refinery is in Olokola Free Trade Zone ,Olokola (OKFTZ) Ondo State, South West Nigeria on a 150 acre parcel of land within the oil and gas logistics base of OKFTZ .

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The Covenant Ground Refinery Ltd, refinery project is to be located in the OKFTZ. It is an essential project for Nigeria to help the economy produce fuel products internally and reduce the national deficit by reducing oil product imports. This low complexity, 25,000 BPD Nigerian crude project with 6,000 BPD gasoline reformer (expandable to 150,000 BPD with 36,000 BPD gasoline) will improve the supply requirements of Nigeria. The product slate consists of one grade of motor gasoline (regular unleaded MOGASRON 90), dual purpose kerosene (DPK)/Jet fuel, AGO diesel, and fuel oil (long residue). The guidelines for this project will be comparable to any similar worldwide project in the industry with regards to safety quality and environmental requirements.

KBR Awarded Development Contract for Araromi Refinery Project by FPR, Inc.


HOUSTON-(June 1, 2010 - EDITOR NEWSWIRE)-KBR (NYSE: KBR) announced today that it has been awarded a contract by Houston-based FPR Inc. to provide Design and Early Engineering Services for the development of the Araromi Refinery Project in the OK Free Trade Zone (OKFTZ) in Nigeria.

“We are proud to partner with FPR, Inc. and assist in the development of the Araromi Refinery Project, a refinery that is anticipated to have a positive impact on the Nigerian market”

KBR will execute the Design and Early Engineering Services for a low complexity 160,000 barrels per day Greenfield refinery and marine facility estimated in excess of US$3 billion. The refinery will produce motor gasoline, automotive gas oil, kerosene and jet fuel. This work will be executed primarily in the Republic of South Africa and the United States.

This award marks the first contract awarded under a Memorandum of Agreement (MOA) under which the two firms anticipate executing various phases of the project which include EPC-GM and Operation and Maintenance. The Araromi Refinery Project will be developed in phases, with an ultimate capacity of 320,000 barrels per day with a full petrochemical complex.

Pursuant to FPR's mission, the refinery will enhance the social and economic development of the host country.

“We are proud to partner with FPR, Inc. and assist in the development of the Araromi Refinery Project, a refinery that is anticipated to have a positive impact on the Nigerian market,” said John Quinn, President, KBR Downstream. “This award demonstrates KBR’s commitment to Africa and allows us to enhance an already robust portfolio of refinery design, engineering and construction in the region.”

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial markets. For more information, visit www.kbr.com.

solomon111: I don't have any problem with building refineries in the north,as long as refineries are sufficient in the oil-producing states.
We can always satisfy the north with petroleum products without building refineries there at the expense of the niger-delta.

Mad Cow: Why would he build the refinery in Ondo State?! Does Ondo State have oil wells or does he intend to run pipes from Ondo to the South-South?!

bloggernaija:

This same mentality you have just displayed here is exactly one of the reasons why the refinery is in ondo state?

dannysteve99@ya:
Why are u bringing this nw,Is ondo State nt in Nigeria?stop all this ur state here state there.Am from Delta State i should tell him to put it in my backyard or what? Aliko u too muc h God bless u. Let others be carrying Guns.

Eko Atlantic: Not all members on this forum are actually dullards, based on comments on this page(3)

Mad Cow: Why would he build the refinery in Ondo State?! Does Ondo State have oil wells or does he intend to run pipes from Ondo to the South-South?!

Eko Ile: There must be something in Ondo state to justify this concentration of new refineries...

Eko Ile: I'm no fan of Mimiko, but one think I do respect in creativity and vision.

They don't have access to the sea in Ondo state, but they've managed not only to create access to the sea, they've also managed to so spun their oil and Natural resources into a major Energy and manufacturing hub with the OK free trade zone and other emerging investments..


For them to gain access to the sea and move their goods and services to major markets all the way down to Lagos, they teamed up with Ogun to actualize the joint free trade zone because Ogun state via Lagos has little access to the sea.

Now they have access to a deep see port attache to the trade zone under construction as we speak and I'm also 100% sure Dangote saw this before making the decision to site his refinery in Ondo state. Moving his products to major markets and the outside world is a safe and straight shot from Ondo to industries in Ogun, Lagos and the deep sea port....

Correction:Ondo state has the longest coast in nigeria.

This is a win win situation for job seeking Nigerians, the investors including Dangote, Ogun state government and Ondo state government and by extension, the Lagos state government because the HQ for the free trade zone is in Lagos state so corporate taxes goes to the Lagos state government.


There is no handicap anywhere, the only handicap is you limiting yourself by not finding creative ways to walk around your handicap...

olajide_07:
Simple, most of the oil companies exploring for oil in the niger-delta said they are pulling out over the next 3-5years classified info, because of the kidnapping and unfavourable exploration terms, the southwest is highly stable when compared to the other regions where oil is found Bayelsa and delta states, with little or practically no militancy happening, there oil reserves in the south west ondo and parts of Imo are in excess of 2/3 of what is still available in the delta area, the only constraint has been, its deep offshore, and it would cost more to explore, lastly labour is available and people want to work in the south west when compared to other oil producing states.

Mad Cow: Why would he build the refinery in Ondo State?! Does Ondo State have oil wells or does he intend to run pipes from Ondo to the South-South?!