FG Commits to Funding Modular Refineries

The Minister of Petroleum Resources (Oil), Senator Heineken Lokpobiri at the weekend asked illegal operators to emulate the model of the ongoing Ebenco Global Link Limited refinery in Koko, Delta State to replicate other modular refineries.

Addressing reporters after inspecting the refinery, he urged them to acquire modular refineries with the support of credit facilities from the Federal Government.

Lokpobiri said when they acquire modular refineries, the operators will procure crude oil, pay tax and in on the other hand, generate employment.

He said the solution will be beneficial to both the government and the present operators of illegal refineries.

His words: “Producing modular refineries locally is one of the solutions to pipeline vandalisation that is going on by those who want to do illegal refining.

“When Ebenco modular is completed, we want to see how this could be replicated in collaboration with stakeholders so that those who are breaking pipelines don’t need to break pipeline.

“They need to just acquire this (modular refinery) and if they don’t have money we will see how we can procure them. And then they will pay back in over a period of time.

“We have to find ways to solving that problem vandalisation by those who are doing coal fire. By the time we come up with this solution, they will buy the crude, pay taxes, we will have sustainable employment for them and at the end of the day, it will be win-win for everybody.”

He expressed satisfaction with the level of establishment the indigenous modular refinery has reached. Lokpobiri pledged to commission the plant when it is completely established.

According to him, in partnership with Chinese and others, Ebenco has acquired technology and domesticated it in line with global standards.

The minister said, “This is what other countries do, you acquire technology and then domesticate it. You bring it home. When I got here and saw Ebenco in partnership with partners from other countries with a view to ensuring that whatever it produces in this place will meet global standards.

“So, I am very impressed with what I am seeing, and it is what is recommended for those who what to operate in the midstream. Anybody who wants modular refineries instead of going outside the country should come to Ebenco and then see what is being done here.”

The minister vowed to draft the Nigerian Content Development Monitoring Board (NCDMB), Executive Secretary, Engr. Felix Ogbe and the management team to assess Ebenco modular refinery for possible partnership.

Speaking, the Ebenco Chief Executive Officer, Ebenezer Oluwagbemiga Akin said the plant is at its final stage of development.

It is highly of local content to address the fuel scarcity as the minister has charged them.

He said although the company has a license for 30,000 barrels per day plant, it is developing 1000 barrels capacity at the moment.

According to him, the firm will soon invite the minister for the commissioning of the modular refinery.

A modular refinery has capacity to produce Automotive Gas Oil (AGO), Kerosene, Naphtha and FPSO, he said stressing “that is what the main license is for.”

Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Director of Liquid, Ngozi Nwankwo said the refinery has brought innovative local technologies to bear which even NMDPRA has to understudy.

She said the refinery will not grapple with paucity of fund like other modular refineries because of its unique local technology.

Nwankwo noted that some other plants keep incurinng cost of production even when they are out of operation, which increases their cost of operation, but Ebenco will not face such issues.

According to her, most of the local refineries are always facing lack of crude oil supply as their challenge.

She urged local investors to borrow a leaf from the refinery.