President Muhammadu Buhari has granted licences to 65 Nigerian companies to construct modular refineries.
The companies were selected from about 285 applications that were screened for the purpose.

Modular refineries are mini-refineries with capacities ranging from 1,000 to 10,000 barrels per day, bpd, which can be assembled and separated easily for enhanced performance and efficiency.


The decision to award Licence to Establish, LTE, which was taken within 10 days of his assuming office in June, may not be unconnected with his desire to see the increase in domestic refining capacity to meet local demand, thereby reducing huge import bills for subsidy.

Although the Department of Petroleum Resources, DPR, the industry regulator, feigned ignorance of the development, one of the beneficiary companies confirmed to Vanguard that the measure is also meant to cushion the impact of crashing oil prices at the international market.
The shock is not only in the period the approvals were given, but also in the numbers granted considering the fact that 18 LTEs were granted in 2002, but only one of them had come on stream with just 1,000 barrels per day, bpd, capacity.

The refinery is operated by Niger Delta Petroleum Resources, NDPR, which produces only automotive gas oil, AGO, popularly called diesel.

How approvals were granted

Chief Executive officer of the beneficiary company, who spoke in confidence, said the number was not unilateral, but “the mop up of all applications for private refining since 2007.”

He admitted that the process took a period of six months, dating back to former President, Goodluck Jonathan’s administration, adding “the process was rigorous as they looked at many issues including, land, investment, technical competence, design and a host of many others.”
He added that licences were offered on a two-year tenure, after which it will elapse, and that “the beauty of these awards is that there was no lobbying, as the whole exercise followed due process.”

In his opinion, there is nothing wrong with the high number of awardees, arguing that “for a country like Nigeria, the more in-country capacity, the better for us, because in a falling oil price regime, the more you refine, the more value you add and the more revenue you earn from your crude.”

DPR guidelines

A top management staff of DPR, when contacted, simply told Vanguard on telephone: “I am not aware of any such huge approval.”
When prodded further, he added: “What I know is that DPR recently released guidelines for the establishment of refineries, and we had road shows in Lagos, Port Harcourt and Abuja, to sensitise investors.”

Ordinarily, there are three levels of approval for setting up private greenfield (new) or modular refineries in the country.

They are Approval to Establish, LTE; Approval to Construct, ATC, and Licence to Operate, LTO.

An investor must overcome the requirements in each level of approval before proceeding to the next, as shown in the guidelines.
DPR had explained that the guidelines for the establishment of modular refineries in Nigeria was configured with the aim of shortening the approval time for licensing of refineries.

To woo investors to the project, DPR also reduced the licensing fee for new refineries from $1 million to $50,000. Government is desirous of refining at least 50 percent of its crude output in-country, not only to reduce import dependence, but also be an exporter of refined petroleum products.

Challenges

Also confirming the development, a petroleum expert from the Emerald Energy Institute, University of Port Harcourt, Profesor Chijioke Nwaozuzu, said he was more concerned with the challenges for establishing such refineries.

According to him, such challenges are tied to political, land, funding, crude feedstock and market availability.

He said: “These refineries are going to be located mainly in the Niger Delta, and the state governments may want to get involved because it is a high revenue earner, which grants only 28 days credit cycle.

“Also, refinery requires huge land, and there may be issues with acquisition from the land owners and to cap it all, refinery of any capacity requires huge capital. You need at least $30,000 per barrel, which is a huge sum even for a 1,000kbpd refinery.”
Feedstock… as in power sector

Furthermore, he noted that if Federal Government does not guarantee feedstock for those who complete the approval cycle, Nigeria may have a repeat of what happened with the initial 18 licences granted in the past.

Nwaozuzu, urged government to guarantee feedstock to the refineries, as it is doing with the existing 445,000 combined capacity four refineries, in addition to also guaranteeing the off-take of the products for the local market.

http://www.vanguardngr.com/2015/08/buhari-approves-65-licences-for-private-refineries/?utm_source=&utm_medium=twitter

He admitted that the process took a period of six months, dating back to former President, Goodluck Jonathan’s administration, adding “the process was rigorous as they looked at many issues including, land, investment, technical competence, design and a host of many others.”

---

[b]So the "clueless" one has been working silently in the background without noise or fanfare?

Honestly Buhari should have a walk in the park governing Nigeria. He doesn't have to do much. Let him just relax and continue GEJ policies because all the sacrifices of Jonathan are already yielding fruits.

We should have been patient with Uncle Jo. He clearly knew what he was doing. From Auto policies to Agricultural growth to improvement in Power generation and modular refineries to spur growth locally. Almajiri Schools, new universities nationwide, FOI bill.

Is it the new airports or the attempts to open the East to the world? Enugu international airport and the commencement of the 2nd Niger bridge? He even impacted on the rail sector . All these in 5 years under war.

If only the demons that control the media don't toy with the uneducated Nigerians. Strangely enough they shout corruption but Transparency international thinks otherwise!!! Our corruption rating has drastically reduced from 1st position during Obasanjo's reign to 43rd under Jonathan!!!

Painful enough Jonathan isn't around to reap the fruits of his labour. All these things he accomplished even when the demons from the North kept terrorising. Something one old fool with otapiapia mouth couldn't achieve in 8 peaceful years!!

God bless you Jonathan. We the simple people who are not sophisticated neither born to rule acknowledge your efforts in building Nigeria. We acknowledge no other president has attempted to tackle Nigeria's multi-faceted issues the way you did.

We only pray your successor can build on your foundation... unless he is a dullard as they say.[/b]

Who is fooling who?

Hmmm

this one is out of my pay grade....
it's beta I stay quite...

Una nver chi cho chi

saiiiiii Buhari

.... and he keeps fooling us

spear007:
Who is fooling who?

Baba is working and the wailers are wailing!

...the more you refine, the more value you add and the more revenue you earn from your crude.

Basic Petroleum Economics

I dey laugh like all dis 'anachi amu na aka" pple.
63 of those refineries belong to 'amu na aka' pple while 2 belongs to Olebunu of lagos.

Thou quite happy d "D Clueless one" set a pace nd path to d "dullard".

Nigeria will rise again..

menix:
I dey laugh like all dis 'anachi amu na aka" pple.
63 of those refineries belong to 'amu na aka' pple while 2 belongs to Olebunu of lagos.

Thou quite happy d " Clueless one" set a pace nd path to d "dullard".

Nigeria will rise again..

hmmmmmm

tyson99:

hmmmmmm

I mess?

calebo101:
He admitted that the process took a period of six months, dating back to former President, Goodluck Jonathan’s administration, adding “the process was rigorous as they looked at many issues including, land, investment, technical competence, design and a host of many others.”

---

[b]So the "clueless" one has been working silently in the background without noise or fanfare?

Honestly Buhari should have a walk in the park governing Nigeria. He doesn't have to do much. Let him just relax and continue GEJ policies because all the sacrifices of Jonathan are already yielding fruits.

We should have been patient with Uncle Jo. He clearly knew what he was doing. From Auto policies to Agricultural growth to improvement in Power generation and modular refineries to spur growth locally. Almajiri Schools, new universities nationwide, FOI bill.

Is it the new airports or the attempts to open the East to the world? Enugu international airport and the commencement of the 2nd Niger bridge? He even impacted on the rail sector . All these in 5 years under war.

If only the demons that control the media don't toy with the uneducated Nigerians. Strangely enough they shout corruption but Transparency international thinks otherwise!!! Our corruption rating has drastically reduced from 1st position during Obasanjo's reign to 43rd under Jonathan!!!

Painful enough Jonathan isn't around to reap the fruits of his labour. All these things he accomplished even when the demons from the North kept terrorising. Something one old fool with otapiapia mouth couldn't achieve in 8 peaceful years!!

God bless you Jonathan. We the simple people who are not sophisticated neither born to rule acknowledge your efforts in building Nigeria. We acknowledge no other president has attempted to tackle Nigeria's multi-faceted issues the way you did.

We only pray your successor can build on your foundation... unless he is a dullard as they say.[/b]

oga we don't have the patience to wait for any drunkard. We gave him six years and he was just working silently. Well as a president you have to talk. You carry your people along and not just work quietly in your closet like one kindergarten pupil.

ADAMUdaCOWBOY:

oga we don't have the patience to wait for any drunkard. We gave him six years and he was just working silently. Well as a president you have to talk. You carry your people along and not just work quietly in your closet like one kindergarten pupil.

The way these wailing elements with elementary minds think is just too absurd. Imagine having to still have patience with Jonathan after six years but it is justified by them to castigate Buhari after less than 100 days.

Aiyam bery bery happy even though I no understand that long epistle.
But sai baba.

65 refineries, what will the government do to aid their development?

I just want this country to move forward, how it's done shouldn't be the problem, but getting it done, so that we all can be proud of this great country someday, not for ourselves but for d younger generations coming after us

.

Naija gbagaun

observing...

but why all these comments on what FFK said. As long as Nigeria is a better place to be, who cares which tribe are appointed.

Hmmm... Lemme read..

Sai baba...
WAILInG WAILERs oya do d'needful

Thank God for sai baba.. Naija is destined for greatness.. wailers hw market?

Sentimental approvals.

And lemme guess,he will 60 of those licences to northerners....na wa...yourba people don Bleep up ooo

ok

nice, this was what Osinbajo was saying and promising during his interviews before elections when they were asking him how do he think nigerian government can tackle shortage of fuel supplies.
Hope they will fast track the delivery within 3 years.

calebo101:
He admitted that the process took a period of six months, dating back to former President, Goodluck Jonathan’s administration, adding “the process was rigorous as they looked at many issues including, land, investment, technical competence, design and a host of many others.”

---

[b]So the "clueless" one has been working silently in the background without noise or fanfare?

Honestly Buhari should have a walk in the park governing Nigeria. He doesn't have to do much. Let him just relax and continue GEJ policies because all the sacrifices of Jonathan are already yielding fruits.

We should have been patient with Uncle Jo. He clearly knew what he was doing. From Auto policies to Agricultural growth to improvement in Power generation and modular refineries to spur growth locally. Almajiri Schools, new universities nationwide, FOI bill.

Is it the new airports or the attempts to open the East to the world? Enugu international airport and the commencement of the 2nd Niger bridge? He even impacted on the rail sector . All these in 5 years under war.

If only the demons that control the media don't toy with the uneducated Nigerians. Strangely enough they shout corruption but Transparency international thinks otherwise!!! Our corruption rating has drastically reduced from 1st position during Obasanjo's reign to 43rd under Jonathan!!!

Painful enough Jonathan isn't around to reap the fruits of his labour. All these things he accomplished even when the demons from the North kept terrorising. Something one old fool with otapiapia mouth couldn't achieve in 8 peaceful years!!

God bless you Jonathan. We the simple people who are not sophisticated neither born to rule acknowledge your efforts in building Nigeria. We acknowledge no other president has attempted to tackle Nigeria's multi-faceted issues the way you did.

We only pray your successor can build on your foundation... unless he is a dullard as they say.[/b]

Posterity will surely remember him.