NCDMB, Dangote Refinery hold workshop on Nigerian Content

The Nigerian Content Development and Monitoring Board (NCDMB) and the Dangote Petroleum Refinery and Petrochemicals (DPRP) recently organized a one-day sensitization workshop on Nigerian Content Compliance.

The workshop was held in Lagos State and sought to enlighten Dangote Refinery Project contractors on the regulations, policies and laws that apply in the oil and gas industry as well as encourage compliance.

In his address, the Executive Secretary of NCDMB, Engr. Simbi Wabote, represented by the Director, Monitoring and Evaluation, Mr. Akintunde Adelana, explained that the workshop was intended to create awareness on the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, increase the participation of Nigerian companies and utilization of local goods and services in the execution of the refinery project.

Adelana regretted that the first 50 years of oil exploration and production in Nigeria, up until 2010 was characterized by almost every activity in the industry being executed overseas, resulting in huge capital flight, lack of jobs for Nigerians in the industry, non-existence of requisite in-country capacities and ultimately less than five percent in-country value retention.

He noted that the Board’s target under its Nigerian Content 10-year strategic roadmap is to achieve 70 percent in-country value retention by 2027, and to meet the target, there was need for greater indigenous participation and domiciliation of industry activities. He clarified that Nigerian Content is not geared to promote indigenization of industry activities but is rather focused on domestication and domiciliation of operations.

He expressed delight at the level of work going on at the refinery site, noting that the Chief Operations Officer (COO) of DPRP, Mr. Giuseppe Surace has tremendous knowledge of Nigerian Content practice, having worked previously with Saipem Nigeria.

In his remarks, Surace assured that the execution of the DPRP project would engage Nigerian vendors and create local capacities, in line with the provisions of the Nigerian Content Act.


NCDMB donates Economics Lab to Niger Delta University (NDU)

The Nigerian Content Development and Monitoring Board (NCDMB) on Monday commissioned an ultramodern Econometrics Laboratory it built at the Department of Economics, Niger Delta University, Wilberforce Island, Bayelsa State.
The laboratory is equipped with state of the art computers, modern economics software, projectors, printers, photocopiers and is powered by a 30 KVA generating set with a backup 10 KVA inverter to ensure stable and constant power supply.
Speaking at the event, the Executive Secretary, NCDMB Engr. Simbi Wabote, represented by a Supervisor in the Capacity Building Division, Mr. Timbiri Augustine, said the project was part of the Board’s efforts to close existing gaps in the Nigerian educational system. He added that the laboratory will enhance the quality of teaching and learning in the Department of Economics and impact positively on the graduates.
He explained further that the mandate of the Board was to build human and material capacities and capabilities and ensure the utilization of local facilities, technology as well as goods and services in the operation of the Nigerian Oil and Gas Industry.
He urged the university to ensure effective use of the laboratory and assured that the Board would continue to collaborate with institutions of higher learnings in Nigeria to boost the standards of learning for undergraduates.
In his remarks, the Vice Chancellor of the University, Prof. Samuel G. Edoumiekumo commended the Board for donating the laboratory, which would enhance the value of the graduates and lecturers. He also requested the NCDMB to establish a Research and Development Centre of Excellence in the Engineering Faculty, to upscale the capacities of young Nigerians with skills required in the Oil and Gas Sector.

Kachikwu sets up Nigerian Content Research & Development Council

The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu on Wednesday in Abuja inaugurated the Nigerian Content Research and Development Council (NCRDC).

The Council is expected to advise the Nigerian Content Development and Monitoring Board (NCDMB) on matters relating to Research, Development and Innovation strategy for the oil and gas industry.

The council’s terms of reference are to “advise the Board on criteria and methodology for prioritizing market cum demand-driven research projects, advise the Board on the appropriate strategies and governance arrangements to attract funding for research projects and advise the Board on criteria for the award of research grants and review progress on impact of such grants on Research projects, Product development and Innovation.”

Inaugurating the council, Kachikwu commended NCDMB for accomplishing the commitment it made at the 2017 Research and Development Fair. He described the R&D council as a timely innovation that would deepen the achievements recorded in Nigerian Content implementation.

He charged the members to deliver on their mandate, which will help redress the fallings of the oil and gas sector to the Nigerian economy. “After 50 years, we still cannot refine enough petroleum products and we cannot provide enough electricity for our 190 million populace. In the eyes of the general public, oil is failing the country. Some of the bold steps NCDMB is taking, to create research and create focus will internalize growth and development.”

The Minister underlined that NCDMB had transitioned from just being a policy maker to also functioning as a project promoter. He commended the Board for investing in the Waltersmith Modular refinery, developing industrial parks in Bayelsa and Cross River States and catalyzing the partial integration of the Egina FPSO.


Kachikwu added that the NCDMB is focused on increasing Nigerian participation in oil and gas projects and engendering business opportunities locally. “The new NCDMB is more dynamic and focused, to a point where the National Assembly is now considering whether Local Content should be implemented across sectors because of the success we have brought to the oil and gas industry. Even the world, especially African countries have taken notice.”

In his comments, the Executive Secretary of NCDMB, Engr. Simbi Wabote explained that the framework of the Board’s research and development provides that all research topics or thematic areas must be based on industry challenge or needs.

He added that “the Board will be more involved in applied research to give room for product development and would encourage prototype development of products.

“The Board would be involved as well as encourage commercialization of products or research endeavors. The Board would ensure that every product that is commercialized at the back of oil and gas activities is accepted and utilized.”


The Nigerian Content Research and Development Council is chaired by the Executive Secretary of NCDMB. Other members include Engr. Patrick Olimna, representing the Oil Producers Trade Section (OPTS); Mr. Uzochi Nwagwu, representing the Petroleum Contractors Trade Section (PCTS); Dr. S.B Ramon Yusuf from the National Universities Commission (NUC) and Mr. Isa Yusuf Maikanma from the National Board for Technology Incubation (NBTI). Other members include Dr. John Erinne, representing the Petroleum Technology Association of Nigeria (PETAN); Mr. Dele Aikihonbare, representing Independent Petroleum Producers Group (IPPG) and Mr. Tandama Adamu Abu from the National Office for Technology Acquisition and Promotion (NOTAP).

Wabote seeks action on gas investments

… to invest in the gas value chain

…set to sign MoUs with investors on NOGAPS

Players in the gas sector should canvass for speedy implementation of existing policies and pursue the delivery of identified gas opportunities, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has said.

He spoke in Abuja at the Nigerian Gas Association’s 2018 International Conference held recently and argued that there had been sufficient discussions on missed opportunities of the past years and huge subsisting potentials of gas to the Nigerian economy.

Members of the NGA and other stakeholders of the oil and gas industry must begin to pick up the gauntlet, he posited. “I implore you to make this happen. It does not have to be a gigantic, big bang project that overwhelms everybody and does not get delivered at the end of the day. Let’s take one or two aspects of the value chain and channel all energies on them so that in two years’ time we are here to celebrate value addition to our hydrocarbon resources.”

The Executive Secretary confirmed that NCDMB had begun to implement some of its initiatives, citing an example with the US$200m Nigerian Content Intervention Fund, managed by Bank of Industry for the provision of loans to oil and gas service providers at single digit interest rates for the acquisition of key assets, manufacturing and other activities.

Another ongoing initiative is the Nigerian Oil and Gas Parks Scheme (NOGAPS) currently under construction in Bayelsa and Cross River states. “The parks will be operated using the sites and service model with provision of electricity round the clock to enhance manufacturing activities,” he added.

Wabote affirmed that the NCDMB would be willing to support any investor willing to deepen local content practice in the gas value chain. According to him, “part of our 10-year strategic roadmap is to support credible proposals from local businesses that want to key into opportunities in the hydrocarbon value chain. Let’s move beyond talk into action. Our recent deal to support the construction of a 5,000 barrels per day modular refinery was done in less than six months.

“If you are interested in manufacturing of cylinders, clips, hoses, burners, regulators, lighters, or in the provision of other services in the gas value chain, please approach the Bank of Industry with your applications. A key requirement is that you must be a contributor to the Nigerian Content Development Fund.”

Dwelling on NOGAPS, the NCDMB boss invited interested investors to liaise with the Board on how to participate in the scheme. He hinted that the Board would sign Memorandum of Understanding with such investors before the end of 2018 and early birds would enjoy the first mover advantage.

He also confirmed that the 25 megawatts independent power project (IPP) being developed by the Nigerian Agip Oil Company (NAOC) in partnership with the Board in Bayelsa State would be commissioned in December 2018. The IPP would power the Bayelsa NOGAPS and the Board’s 17-storey headquarters building, which would be completed in the first quarter of 2019.

NCDMB, NLNG target huge Nigerian Content on Train 7 Project

The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigeria Liquefied Natural Gas Company (NLNG) have set high Nigerian Content benchmarks in the execution of the train 7 project, estimated to cost $7bn.

The organisations declared their commitment in Abuja on Tuesday at the two-day Nigerian Content Workshop organised on the project by the Nigeria LNG. The company plans to take Final Investment Decision (FID) before the close of the fourth quarter of 2018.

Participants in the workshop included local and international oil service companies that are seeking to participate in the train 7 project and the two international consortium that bided to execute the lead engineering, procurement and construction (EPC) components.

The Executive Secretary of the NCDMB, Engr. Simbi Wabote stated that the workshop was designed to sensitize industry stakeholders on the local content opportunities in the project and create the platform for the identification of local supply chain capacities and capabilities that are available in-country.

He affirmed that the execution of the train 7 project would lead to the establishment of new capabilities and expansion of existing facilities, adding that the implementation of Nigerian Content in the past eight years led to the development of immense capacities and ensured that major industry projects are no longer executed overseas and shipped to Nigeria for installation.

He also expressed optimism that “the train 7 project will bring about great opportunities for utilizing local goods and services in addition to affording local companies the prospect to enhance their capacities and capabilities thereby further stimulating the local supply chain

“Similar to the legacy capacities developed on the back of the Egina project, we expect that the Train 7 project will provide the platform to expand existing businesses and create ample opportunities for new businesses as we push the boundaries of local capabilities.”

Wabote also challenged service providers to build capacity so as to position themselves for the available opportunities. The companies should also build effective and efficient supply chain, which would help them achieve high performance, he added.

He voiced his belief that the project would be developed successfully, particularly because Nigeria LNG is an Integrated Joint Venture (IJV) and investment decisions are taken by the shareholders without external influences.

In his remarks, the Managing Director, NLNG, Engr. Tony Attah, said the train 7 project would increase the production output of the company’s plant by 35 per cent from 22 Million Tonnes Per Annum (MTPA) to 30 MTP and improve foreign direct investment (FDI) into Nigeria.

Senior officials of the company also listed major scopes of the project to include engineering, procurement, construction, logistics and other services. They listed the various Nigerian Content opportunities that exist in each package and added that the project would employ 100,000 personnel on site at the peak of construction.

NCDMB donates relief items to flood victims in Bayelsa State

As part of its corporate social responsibilities and support to its host communities, the Nigerian Content Development and Monitoring Board (NCDMB) on Saturday donated over 2,900 relief items to some communities displaced by flood in Bayelsa State.

The items included bags of rice, tins of groundnut oil, tin tomatoes, treated mosquito nets, mattresses and bags of beans. Others materials were bags of garri, printed wrappers, and indomie. There were also cartons of toothpaste, sanitary towels, evaporated milk, sacks of sugar among others.

The Executive Secretary, NCDMB, Engr. Simbi Wabote while presenting the items explained that the donation was part of the Board’s efforts to impact their immediate environment. He said, “we have watched with uttermost dismay the devastation the flood has brought to Bayelsa and its environs. The Board being an agency of the Federal government with the headquarters in Bayelsa State is responsible and responsive to the plights of the community where it operates.”

He empathized with the victims and encouraged them to be resilient despite being thrown out of their homes temporarily by the natural disaster.

Wabote called on other agencies of government and private sector players to support the communities and the internally displaced persons.

He charged the community leaders and the State Emergency Management Authority (SEMA) to ensure judicious distribution of the donated materials to the affected victims, adding that the Board would monitor the exercise. He further advised the government to create and equip disaster centers where residents of the state can be relocated easily whenever such incidences occur.

Responding on behalf of the Bayelsa State Governor, Honorable Seriake Dickson, the Commissioner for Environment, Mr. Ebipatel Apaingolo appreciated the Board for alleviating the plights of the persons and communities displaced by flood. He maintained that the State Government lacked the capacity to cater for all the displaced persons and called on other corporate bodies and well-meaning individuals to emulate the Board’s kind gesture and support the flood victims.

At the Igbogene camp for the internally displaced persons, the Coordinator, Bayelsa State Emergency Management Agency, Rtd Col. Roland Yekorogha thanked the Executive Secretary for the Board’s support and assured that the items will be properly distributed to the displaced persons in the camp.

Receiving the items at Tombia village, the King of Tombia Ekpetiama, HRM C.A.O Otobotekere was represented by one of his cabinet members, Chief MJP Akanga.

He called on government and non-governmental organisations to assist in curbing the perennial flooding that ravages their community. He recommended channelization and shore protection of the River Nun that is close to the community.

Akanga appreciated the Board for being the first government agency to provide relief items to the community and called for more supports from other organizations and individuals.

The relief materials was distributed to flood victims in Amasoma Community, Tombia Ekpetiama, Igbogene, Okutukutu Community and Opokuma Clan.

NCDMB, Customs to partner on protection of industries, vessel categorization

The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Customs Service (NCS) would collaborate to protect local oil servicing companies by preventing the importation of goods which local firms have full capacities to manufacture. Some of those oil and gas goods include cables, coated pipes, some OCTG tubulars, helical welded pipes and coveralls.

The agencies would also partner to ensure authentic categorization of vessels that operate in the Nigerian oil and gas industry. The essence is to certify that “vessels categorized by the Board that have Nigerian ownership status and demonstrate capacity and capability are given first consideration in contract awards and execution of jobs,” the Executive Secretary of NCDMB, Engr. Simbi Wabote said.

The agreement was reached when the Executive Secretary paid a courtesy visit to the Comptroller–General of Customs, Col. Hameed Ibrahim Ali (Rtd in Abuja recently.

For effectiveness, the two agencies would inaugurate a joint committee. They would also integrate their electronic platforms-the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGIC JQS) and Nigerian Integrated Customs Information System (NICIS).

The collaboration would among other benefits, ensure that NCDMB and NCS excel in the efficient and timely collection and accounting of revenue and protection of the Nigerian oil and gas industry.

Making a case for strict regulation of imports, Wabote said, “we need the Customs to check the activities of some of individuals and companies that flout the provisions of the Nigerian Content Act to import oil and gas products that are available here and thereby create unemployment and kill the dreams of local investors.”

On vessel categorization, the NCDMB boss sought the support of Customs to address difficulties in verifying the authenticity of Custom Duty payment documents presented by vessels vendors to the Board for evaluation and determine status of Temporary Custom Import Duty on vessel ownership.

“This will enable us establish the genuine ownership and categorisation of such vessels in the oil and gas sector.”

In his remarks, the Comptroller–General of Customs commended the Board for the achievements it recorded in the implementation of the Nigerian Content Act and for its initiative to synergize with NCS. He confirmed that NCS would collaborate with the Board, adding that the agency had always wanted to partner key players and regulators in the oil and gas industry in the area of tariff and trade as Customs does not operate in isolation.

He said, “If we must improve on our Local Content, we need to protect the interest of Nigerians.”

Earlier in his presentation, the Executive Secretary highlighted some achievements of the Board, stating that $5bn spend was now being retained in-country out of the annual spend of $20bn, which used to be expended completely overseas in the past.

He added: “Before 2010, we targeted four pipe mills; today we have two world-class pipe mills and five impressive pipe coating yards. Before 2010, only three percent of marine vessels were Nigerian owned; today, Nigerians control and own 36 percent of vessels that are used in the oil and gas industry.

“Before 2010, we had no active dry-dock facilities. The few we had were abandoned and left to rot away. Today, we have four active dry docking facilities in Port Harcourt, Onne, and Lagos. “Over 30,000 direct jobs have been created on the back of implementation of the Act. In fabrication, today Nigeria can handle fabrication of more than 60,000 tonnes per year.”

Speaking further the NCDMB said, “in cable manufacturing, all cables required in the oil and gas sector are all manufactured in-country. Assembly of Offshore Christmas trees in-country never existed before but now there are facilities in-country to do this. We have witnessed the growth of successful indigenous operators such as Seplat, Aiteo, and others. Infrastructure in also in place for FPSO integration in-country like the one done recently for the Egina project.”

He however stated that the Board was still not satisfied with the level of Nigeria Content achieved and had developed a 10-year strategic roadmap with the aspiration of growing Nigerian Content in the oil and gas sector to 70 percent by the year 2027.

NCDMB, FMI, NIS get committee on Expatriate Quota Management

The Nigerian Content Development and Monitoring Board (NCDMB) has inaugurated a committee constituted by its personnel and representatives of the Federal Ministry of Interior (FMI) and the Nigerian Immigration Service (NIS). The intent is to forge close collaborations in the management of expatriate quota (EQ) and grow Nigerian participation in the oil and gas industry sustainably.

The committee was inaugurated on Monday at the NCDMB Abuja liaison office, with a brief to share information and recommend sanction levels for violators of expatriate quota approvals. Part of the committee’s terms of reference is also to develop strategies for the issuance of Temporary Work Permit (TIP) and stemming of EQ abuse by oil and gas companies.

The Executive Secretary of NCDMB, Engr. Simbi Wabote cited the successful integration of the Egina FPSO at the SHI-MCI Yard in Lagos and retention of 28 percent of the US $20bn annual oil industry spend as some of the major success stories of the Board.

Director, Monitoring and Evaluation, Mr. Akintunde Adelana, represented the Executive Secretary at the event and charged members of the committee to work speedily to deliver on the terms of reference.

The Director, Citizenship and Business, FMI, Mrs. Aisha Rufai commended the Board for creating the opportunity for collaboration and assured of the Ministry’s full support to the effective management of expatriate quota in the oil and gas industry.

The Assistant Comptroller General, Visa and Entry Permit, NIS, Mrs. C.A Dibi explained that the agency carries out expatriate quota monitoring from the point of arrival through the point of departure. She added that the NIS carries out periodic investigations to ensure that Nigerians actually understudy expatriates.

Mr. Adelana will serve as the chairman of the committee, Mrs. Rufai as the alternate and Mrs. Dibi as the deputy chairman. Other members of the committee from the NCDMB include Ms. Tassalla Tersugh, Secretary of the committee, Barr. Esueme Dan Kikile, Mr. Ene Ette and Mr. Erefa Samson. Representatives from the FMI are Mrs. Onuba Amaka, Mr. Sabastine Nalok and Mr. Sabastine Zoemlong. The NIS will be represented by Mr. Musa Abubakar and Mr. A.A Okafor.

BGAM Services acquires security vessel with NCI Fund

The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has commissioned a new security vessel, MV Tamuno-Dein II, acquired by BGAM Services Limited, the first oil and gas company to access the Nigerian Content Intervention Fund (NCI Fund).

The ceremony was performed on Friday at the Naval Shipyard, Port Harcourt, Rivers State.

MV Tamuno-Dein II is a multi-role ballistic security vessel, with protective machine gun panels, electronic fuel monitoring system and deck command center for security personnel. It will work with the Nigerian Navy to secure offshore oil and gas operations.

In his address, the Executive Secretary explained that “the NCI Fund is part of our initiatives to increase Nigerian Content in the oil and gas sector to 70 percent within the next 10 years. We launched the Fund about a year ago with five products, all at single digit interest rates.”

He stressed that an important condition for accessing the NCI Fund is that applicants must be contributors to the one percent statutory Nigerian Content Development Fund (NCDF).

He hinted that BGAM Services benefitted from the Fund because it was faithful in its contributions to the NCDF, kept its accounts correctly and met the corporate governance requirements of the Bank of Industry (BOI).

“You do not need to know any official of the NCDMB or BOI to access the loan. You just need to meet the criteria.”

He charged BGAM Services to repay the loan as planned and expressed optimism that other companies will benefit from the Fund in the coming months.

Making his presentation, the Chief Executive Officer of BGAM Services, Hon Lucky Brown confirmed that it took the firm less than two months to process its NCI Fund application. He noted that the acquisition of MV Tamuno-Dein II had increased the company’s fleet size to three vessels of different sizes and modes of operation.

Brown advised other companies seeking to access the NCI Fund to be methodical in their accounting and applications and seek help when they have difficulties.

The Managing Director, Naval Shipyard Limited, Commodore Abolaji Oreduru gave a goodwill message at the event and commended the Board for promoting oil and gas operations in the marine sector. “We are into ship repairs, ship building and major fabrication. When people buy ships, they will come to us for maintenance and we are in business.”

Kachikwu performs groundbreaking of Waltersmith Modular Refinery

… FG to compel operators to refine 20% of production

…70% of modular refineries to be fabricated in-country

The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu on Thursday performed the groundbreaking of a 5,000 barrels of crude oil per day (bopd) modular refinery being developed by Waltersmith Refining and Petrochemical Company at Ibigwe field, Ohaji Egbema Local Government Area, Imo State. The project is being executed with 30 percent equity financing by the Nigerian Content Development and Monitoring Board (NCDMB) and additional $35 million debt facility from the African Finance Corporation AFC). It is expected to commence production in December 2020.

Speaking at the event, the Minister explained that the Federal Government’s policy on modular refineries is an integral part of the 14-point agenda for reducing militancy in the Niger Delta region. The plan according to him is to set up modular refineries in oil producing communities and use them to create jobs and absorb the militants. “We would take some of the good skills sets they have, polish them and put them into the system.”

He informed that 10 of the 38 licensed modular refineries had made appreciable progress in the development of their projects and the first one is expected to deliver products between December 2018/January 2019. “From modular refineries, we will be able to process about 200,000 barrels of crude and put them into the system.”

He said the Federal Government was engender the establishment of modular refineries through the financing model being managed by the NCDMB and had also granted free custom duty charges and other waivers to enable the investors bring in their equipment.

Kachikwu assured that Government remained committed to completing the revamp of the nation’s four refineries located in Port Harcourt, Warri and Kaduna by 2019, with a target to process about 500,000 barrels of crude oil daily. He regretted that continued importation of refined petroleum products was costing the nation huge sums of money, describing it as a waste of foreign exchange and deprivation of citizens’ jobs.

The Minister expressed excitement that several investors were developing greenfield refineries, that would culminate in about 1,500,000 bopd being refined in Nigeria in a few years, making the country the crude processing hub of West Africa and in control of some part of the East Africa market. He said, “there is the Dangote Refinery in Lagos with the bumper capacity of 650,000 barrels; the Niger-Nigeria refinery that will refine up to 100,000  barrels; the AGIP one which is a 150,000 barrels refinery that will be located in Bayelsa State and the one led by a Chinese consortium that we are finalizing, which would do a co-location. We have two co-location refineries possibilities, each of them promising 100,000 barrels.”

He also hinted that the Federal Government would soon announce a policy to require operating companies to refine locally at least 20 percent of the crude oil they produce, with the percentage graduating to 50 percent in the next five years. “We have no option or we will consistently stay in the abyss of lack of processing while we export all the raw materials.”

In his address, the Executive Secretary, NCDMB, Engr. Simbi Wabote explained that the Board’s decision to invest in the Waltersmith’s modular refinery “is in line with our vision ‘to be a catalyst for the industrialization of the Nigerian oil and gas industry and its linkage sectors’. We stand with the desire of the Federal Government to give effect to the recent pronouncements on the establishment of modular refineries.”

He added that initiatives and partnerships like Waltersmith’s were needed to increase Nigerian Content in the oil and gas sector to 70 percent within the next 10 years. “Beyond our interventions in the local supply chain for in-country capacity utilization, we have broadened our focus to include in-country resource utilization.”

The Executive Secretary confirmed that the Board would consider more proposals in line with its published guidelines, stressing that the capacity of such modular refineries have to be in the range of 1,000bpd to 5,000bpd.

He also confirmed that subsequent modular refineries that would be supported by the Board would have 70 percent of its components fabricated in-country. He clarified that the contractor for the Waltersmith project was permitted to fabricate some of the components in Houston Texas, United States because this was the first time such a project would be executed in Nigeria.

In his welcome address, Chairman of Waltersmith Refining and Petrochemical Company, Mr. Abdulrazaq Isa, explained that the project was “conceptualized in 2011 to mitigate the frequent outage of the third-party export Trans Niger Pipeline (TNP) and optimize the full value of our produced crude through in-country refining and providing products for the domestic market.”

He said the refinery would contribute about 271 million litres of refined products, including diesel, kerosene, HPFO and Naphta, annually to the Nigerian economy, thereby serve as import substitution for meeting domestic demand for petroleum products, create direct and indirect employment as well as reduce the demand for foreign exchange to import refined products.

The MD added that the company had developed plans to increase the capacity of the modular refinery to 30,000 bopd, to process additional products, including petrol (PMS) and Jet Fuel. “We have already executed an MOU with PCC of China towards the installation of the additional capacity within three years, after the startup of the 5,000 bopd modular refinery.”