₦airaland Forum

Presidency has disclosed that plans to convert illegal refineries to modular ones are on.


According to a statement ‎by the Senior Special Assistant on Media and Publicity to the Vice President, Laolu Akande, ‎the plans are part of President Muhammadu Buhari’s new vision for oil-producing communities in the Niger Delta.
He said the modalities are being worked out to explore how some of the illegal refiners and the local communities in the region can become shareholders in the proposed Modular refineries concept of the Federal Government.


A modular refinery is a refinery made up of smaller and mobile parts- (skid-mounted)- that are more easily fabricated and can be more quickly transported to site. They come in different sizes with varying capacities normally lower capacity than conventional refineries with more elaborate and complication set-up.


Under the plan being considered in the presidency, the Federal Government could supply crude to the local refineries at a reasonably considered price, as an incentive to stop the current practice whereby the illegal refiners vandalise and steal the crude. This concept would also prevent the environment degradation that the spills and damaging the trunklines have been causing.


Also, marginal field operators can also supply crude to the new modular refineries that would have the illegal refiners integrated.”



“The consideration going on now is subsequent to the promises made by the Federal Government during the presidential interactive engagements in several oil-producing States led by the Vice President Yemi Osinbajo to integrate the illegal refiners, rather than a scorched-earth policy that seeks to eliminate the operations of such refiners”, the statement read.


Some of hurdles to be crossed are especially issues around the engineering and technical ramifications of such a conversion as well as financial models that would be workable and profitable. According to the statement, specific consideration on how to integrate local “illegal” refiners in the oil-producing communities into the Federal Government’s proposed modular refinery concept is now in progress with the Presidency and the Nigeria Sovereign Investment Agency, NSIA, spear-heading efforts.


The issues around technical and engineering implications of how to integrate the refiners were discussed last week with industry experts and practitioners making presentations on how to implement the modular refinery a brain child of Dr. Ibe Kachikwu, the Minister of State for Petroleum Resources. The experts are working closely with the NNPC, Oil and Gas operators, owners of marginal fields, operators of refineries and various technical services providers to develop a workable system to develop this initiative.


Another important component of the plan under consideration is to involve the current illegal refiners and their communities as shareholders while the NDDC and the NSIA will also hold substantial holdings/equity sufficient to make the smaller refineries operational as a business and a going concern.


To facilitate effective community engagements, an MOU would be established under the plan with the affected communities determining the communities share, while the FG would supervise the implementation, which would be driven largely by industry operators and the communities.

SOURCE

http://sunnewsonline.com/fg-commences-converting-illegal-refineries-to-modular/

Welcome development.

Nice move.

Good one!

Nice one

Nice one!

I see SENSE in nonSENSE. God bless PMB & OSINBAJO God bless Nigeria.

If previous governments had tapped into the ingenuity of those guys, Nigeria would be nearing self sufficiency by now.

It's the same way the government is busy arresting internet hackers while organizations and western governments with foresight are busy scouting them secretly.

Some insensible proscription should be prescribed and we see Nigeria skyrocket above her pairs

Long awaited development. Thumbs up to mr president
Buhari will go down one of d greatest presidents if only he can eliminate religious and ethnic bigotry.

Good Thinking Good Product.

God bless president Osinbajo

A Prof will always makes a difference as his visit to the ND is bearing fruit.

Nigeria Govt. Una good morning o! Ekene Kwan m unu o!! #Ndiara

TheFreeOne:
Good Thinking Good Product.
God bless president Osinbajo
A Prof will always makes a difference as his visit to the ND is bearing fruit.

thank you Buhari

Welcome ideas but I doubt it if it is not well planned, monitor it would defeat the purpose it meant for on arrival. The money bags men can hijack it and leave those militants, the women, the boys that actually suffered for that urgency development empty handed...

Stealing Ifeanyi Uba's idea.
This what this government is doing.
Igbos will always be the saving grace of Nigeria.

If they go ahead with this plan and Ibaka deep seaport sees the light of the day under PMB, then this administration has won me over.

I have a question. Will Dangote and the financiers ( which may include all the power brokers in Nigeria)of his refinery allow this plan to come to pass ?

There is no way this is profitable ..the only way they even make profit refining the way they do is because they steal the oil

Onless u will give them oil for free or at far cheaper rate if not they can't make any profit I can bet my b.engr on that

Refining to petrol ,diesel and kerosene are not really profitable even with far higher efficient plants ..the only reasons dangote will make profit is because of his petrochemical plants

This is not a feasible plan

yet some illegal refineries were destroyed few days back. I hope they stop this act and look to convert it for the benefit of the nation and creating employment. Hope it will affect the price of petrol soon.