Connect with us

Economy

Funding Constraint Stalls 10,000bpd Delta Modular Refinery

Published

on

refineries
  • Funding Constraint Stalls 10,000bpd Delta Modular Refinery

The Managing Director/Chief Executive Officer, Energia Limited, Mr. Felix Amieye-Ofori, said funding constraint slowed down the establishment of a modular refinery in Kwale, Delta State.

He said the company started with a design of 10,000 barrels per day refinery to produce products including petrol, diesel and kerosene.

He said, “At some point, due to cash constraints, because it will cost more than $100m, we decided to scale down to produce Automotive Gas Oil (diesel), kerosene and others, and later we will add Premium Motor Spirit (petrol). But if we have enough funding, we will scale it up. We have the land and everything is ready.

“The only thing that actually slowed it down is the cash issue. If we have been producing and everything was going on smoothly, by now, our refinery would be on stream.”

Amieye-Ofori said at a briefing that the company had got approval from the Department of Petroleum Resources, and had done the Environmental Impact Assessment, among other things.

“The DPR has said we should go into detailed engineering and now we are going to start fabrication. But we had a little hiccup with funding,” he said.

He also said the shutdown of the Forcados export pipeline for almost a year led to a loss of $20m by the company.

Amieye-Ofori said, “We have our own crude; so, we don’t have to go and source for crude; but the capital expenditure (capex) is a bit heavy. The reason for the refinery for us is to solve the pipeline interruptions. If you have the refinery, we will continue to produce. We are going into the downstream to sustain our upstream operations.”

On the recent rally in global oil prices, the Energia MD said, “It is positive but you know it will take a while before we really feel the impact.”

He said the company had continued to enjoy a cordial relationship with its host community, adding that lack of trust between the host communities and oil producing companies was responsible for the endless unrest in oil producing areas.

“In terms of employment, we have about 25 per cent of our workforce from the community. All the local contracts go to local contractors,” Amieye-Ofori added.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Nigeria’s Exports Under US Duty-free Policy Declines to $300.48m

Published

on

Sweden's economy

Nigeria’s Exports to the United States Under Duty-free Policy Declined by 88 Percent to $300.48 million

Nigeria’s total exports under the US duty-free declined by 88 percent from $2,502.86 million to $300.48 million in the first eight months of 2020.

In the latest African Growth and Opportunity Act (AGOA) policy report established in 2000, crude oil export accounted for 99.8 percent of Nigeria’s AGOA exports to the United States in 2019.

In 2019, oil and gas products worth $3.12 billion were exported to the US under the duty-free policy.

However, the plunged in global demand for Nigerian crude oil due to the COVID-19 lockdown weighed on the nation’s oil exports and revenue generation.

The United States imported 5.53 million barrels of crude oil from Nigeria in the first quarter of 2020, down from 15.07 million barrels imported in the final quarter of 2019.

Speaking on the need to improve non-oil export to take advantage of the duty-free like other African nations Mr Olusegun Awolowo, the Executive Director and Chief Executive Officer, Nigerian Export Promotion Council, who spoke at a virtual event recently said despite efforts to sensitise Nigerian exporters on the need to take advantage of the duty-free trade opportunity, only a few Nigerian exporters are benefiting from it.

He said the record crash in global oil prices is an indication that a mono-product economy like Nigeria is not sustainable and that there is an urgent need to develop non-oil export.

We cannot rely on crude oil export as both our major source of government revenue and foreign exchange generation. We must diversify our export base,” Awolowo said.

Continue Reading

Economy

Road Projects: Nigeria Owes Contractors More Than N390 Billion, Says Fashola

Published

on

lekki

FG Owes Road Contractors N392 Billion for Road Projects

The Minister of Works and Housing, Babatunde Fashola has said the Federal Government owes companies handling the 711 road projects across the country a total sum of N392 billion.

This, he said was higher than the N276 billion allocated for road projects in the proposed 2021 budget.

The minister disclosed this on Wednesday while defending the 2021 budget of his ministry before the Senate Committee on works.

Fashola said, “With the situation on ground, a stop has come for new projects and the country needs to prioritise the existing ones in order to complete some of them.

According to him, a total of N6.62 trillion was needed to fund the 711 road projects but because of the limited available resources, there is a need to prioritise the important ones.

He said, “We do not have the resources that we need to fix our road infrastructure at once; the very reason we need to prioritise what want to do.

“The situation on ground requires us to cut our coat according to our cloth and not according to our size because no good will come out of more new road projects now.

Continue Reading

Economy

Waltersmith’s 5,000bpd Modular Refinery in Imo State to Commence Operations

Published

on

Dangote refinery

5,000bpd Modular Refinery Built in Imo State to Start Operations

The Department of Petroleum Resources (DPR) has said the 5,000 barrels per day Modular Refinery project built in Imo State is ready for operations.

Sarki Auwalu, the Director, DPR, disclosed this during a pre-commissioning visit to the project site in Ibigwe, Imo State.

In a statement released by Waltersmith, Auwalu was quoted as saying the purpose of his visit was to ensure that the refinery was ready to commence operations.

He said “We can confirm that the refinery is very much ready to commence operations. We have seen all the preparations.

“To us, the plant is alive. The commissioning is just symbolic. Everywhere is ready to start off. My overall assessment is excellent.

“We have been to other modular refineries but we have not seen anything like this – the space, the way it is arranged and the way it will work.”

The 5,000 barrels per day modular refinery is scheduled for inauguration this month. The refinery has crude oil storage capacity of 60,000 barrels and it is expected to deliver more than 271 million litres per year of refined petroleum products.

Auwalu said, “The role we play is to enable businesses and create opportunities. When DPR issues you a licence, it enables you to invest and as a result of that opportunity we create, that business is enabled.

“Waltersmith is one of our success stories. We consider the project as ours. We have been tracking their growth and we are happy to see that our child is growing. It is our plan that they expand and they have the potential.”

Speaking on the project, Abdulrasaq Isah, the Chairman, Waltersmith Refining and Petrochemical Company, said the project is the first phase of a series of refinery projects that will lead to the delivery of up to 50,000 barrels per day in refining products.

Continue Reading

Trending