The two modular refineries are located in Egbokor Village, Iyoba Ward, Orhionmwon Local Government and Ologbo in Ikpoba Okha Local Government, Edo State. The two refineries are under construction. Egbokor Village, Iyoba Ward, Orhionmwon Local Government. Edo State in the year 2020 can boast of two modular refineries in Nigeria. Please go to Egbokor village, Iyoba Ward, Orhionmwon Local Government and Ologbo, Ikpoba Okha Local Government to verify if you doubt my article.
One of the two modular refineries under construction in Edo is Dupot Oil Modular Refinery, Egbokor Village, Iyoba Ward, Orhionmwon Local Government which is already exporting crude from their field in Edo State. Egbokor village which is the host community is benefitting greatly from the on-going construction works of the modular refinery. In order to ensure regular supply of petroleum products for domestic consumption and provide veritable platforms for Nigerians and investors to take advantage of these opportunities, the Federal Government launched some initiatives to support the establishment of private mini (modular) refineries.
Governor Obaseki and the two modular refineries will drive industrial revolution in Edo State. The petroleum industry in Edo State received a new boost recently as the Federal Government reduced the cost of obtaining a refinery license from $1,000,000(one million dollars) to $150,000 (one hundred and fifty thousand dollars) among other things. The ongoing Modular Refineries project at Ologbo in Ikpoba-Okha Local Government Area of the state and Dupot Oil Modular Refinery, Egbokor Village, Iyoba Ward, Orhionmwon Local Government, Edo State will on completion drive the state’s industrial revolution quest.
In the last 5 years in Edo State, production capacity of PSC’s has steadily increased, averaging 3% growth, to account for about 35% of total production. Edo is one of the lucky states to be an oil producing state. This state contribute 2.06% of the total crude oil output in the country. Benin City is currently the capital of Edo and the state has a human strength of more than 3.3 million spread across the state’s Local Government Areas.
Dupot Oil Modular Refinery, Egbokor Village, Iyoba Ward, Orhionmwon Local Government ,Edo Modular and Refinery Company Ltd. and AIPCC Energy, were on the verge of completing the 5,500bpd and more. Edo Modular Refinery, now at 70 per cent completion stage.
Nigeria’s Edo Modular Energy refinery is set to increase crude oil production from 6,000 barrels per day (bpd) to 60,000 bpd. The project is being developed by two Chinese firms; AIPCC Energy Limited and the Peiyang Chemical Equipment Company Limited.
Operations are expected to commence between September and mid-October, 2021. The first phase will produce 1,000 bpd, while the second phase will produce 6,000 bpd; with a long-term goal of producing 60,000 bpd. Phase one – which is almost complete – will target a production ratio comprising 55% diesel, 38% fuel oil and less than 10% naphtha.
Some of the products will be exported to boost foreign exchange earnings and by the time we extend it into different phases. We would be able to take care of more than 80% of diesel requirement in Nigeria. That is the vision we have for the next five years,” says Segun Okeni – AIPCC Energy Limited Head of Quality, Health and Safety/Community Relations.
The investment will benefit the Edo people through job creation, increased revenue and ease of pressure on other refineries. This is a key legacy project by the Gov. Godwin Obaseki-led administration to recalibrate the state’s industrial base, birthed through a Memorandum of Understanding (MoU).
“The project, sited at Ologbo in Ikpoba Okha Local Government Area, would produce from its feedstock 50 per cent of diesel (500,000 litres), 25 per cent of naphtha (300,000 litres) and 20 per cent of fuel oil (200,000) litres. “The crude is to be sourced from the Nigerian Petroleum Development Company’s (NPDC) facility – oil mining lease (OML) 111, near Benin City.
The modular refineries project were among the growing list of ongoing legacy projects through MoU with local and international private investors, which included the 55MW CCTEC Ossiomo Power Plant, which had been completed and ready for use. “The Benin Enterprise and Industrial Park, which development is ongoing and the Benin River Port, for which preliminary works are ongoing,” . Governor Obaseki is committed to resetting the economy of the state for prosperity and industrial growth.
The local content component of the refinery project ensures that Edo citizens are trained in welding, refinery operation and fabrication works to enable them participate in the construction of the refinery as well as its operation, post-commissioning.
A modular refinery is a prefabricated crude oil processing plant constructed on skid mounted surfaces, with each structure containing a portion of the entire refining process plant, with by interstitial piping to form an easily manageable process. Technically, a modular refinery could be either simple or complex, with capacity ranging from 100 bpsd to 10,000 bpsd. They are however not defined by size. They can be transported in modules across distances and put together at the location desired. The other advantages of modular refineries include short project completion time,relatively small overall project cost, provides quicker investment return, can be installed in small space and could be designed towards petroleum product need around its location.
Attempts to construct private refineries in Nigeria started in 1990 with the call for indigenous private participation in crude oil refining by the government. Between 1990 and 2000, the Department of Petroleum Resourcesreceived over 100 applications. From 2001 to 2007, the 3-Stage Licensing (License to Establish – LTE, Approval to Construct – ATC and License to Operate – LTO) process, which is still in use to date was adopted. About 105 applications were received during the period, leading to grant of 21 LTEs in 2002 and 17 ATCs in 2004. Between 2008 and 2011, focus was placed more on mini (modular) refineries. Nine (9) LTEs were granted and two plants were fabricated, but only the 1,000 bpsd capacity Niger Delta Petroleum Resources refinery at Ogbelle River State wascommissioned. From 2012 to date, about 34 LTEs have been granted for mini(modular) refinery projects; six (6) of these companies have been granted ATCs and are at different levels of construction.
Inwalomhe Donald writes via email@example.com