Rehabilitated refineries are expected to operate at 90% capacity – FG

Simbi Wabote, Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), claimed that the rehabilitation of NNPC refineries in Port Harcourt, Warri, and Kaduna is expected to yield roughly 400,000bpd, with target performance of not less than 90% of nameplate capacity.


Wabote also stated at the Nigerian Continent Midstream-Downstream Oil and Gas Summit in Lagos that the current administration’s refining roadmap, which includes four focus areas such as the rehabilitation of the country’s existing four national refineries, co-location of new refineries, construction of greenfield refineries, and construction of modular refineries, is expected to increase the country’s combined refining capacities to more than 1.4 million bpd in the next five years.

The summit’s subject, “Towards Maximizing Potentials in the Midstream and Downstream Oil and Gas Sector – A Local Content Perspective,” he said, is based on the company’s 10-year strategic roadmap to achieve a 70% Nigerian Content target in the oil and gas industry by 2027.

According to him, the oil and gas industry’s midstream and downstream sectors offer potential to maximize profits.

In comparison to the upstream sector, the employment element in the midstream and downstream sectors of the business is higher in number and has a longer duration.

“This allows us to absorb the job possibilities generated by our Human Capacity Development programs.” “Compared to the upstream sector, the entry hurdle for enterprises to participate in the midstream and downstream sectors of the industry is substantially lower,” he said.

“There are tremendous business prospects in the midstream to downstream sectors, spanning from processing, transportation, storage, and distribution, that may be established on a modest scale and grown up to larger firms, therefore boosting in-country capacities and capabilities,” he added.

Another possibility that needs to be realized, according to him, is the direct societal impact that a productive and efficient midstream and downstream sector of the oil and gas industry brings.

“Whatever citizen who is confident in the availability of energy supplies in any form, such as electricity, fuels, gas, and others, should feel proud.” These have a direct link to quality of life, productivity, longevity, and social peace,” he explained.

The NCDMB chairman said modular refineries are acting as a catalyst to accelerate the implementation of the refining roadmap, citing its partnership with Waltersmith for the delivery of a 5,000 barrels per day modular refinery in Imo State, which is already operational.

“Next in line is the 2,500 barrels per day Duport Modular Refinery in Edo State, which is expected to be operational this year. The 2,000 barrels per day Atlantic Refinery and the 12,000 barrels per day Azikel Hydro-skimming Refinery, both in Bayelsa state, are also under development,” he noted.

He also stated that the NCDMB is working with the NNPC to build a 50,000-liter petroleum products terminal in Brass Island to enable the storage and delivery of white goods across the country’s coastal states.

Timipre Sylva, Minister of State for Petroleum Resources, said the Petroleum Industry Act (PIA) has established a governance framework for the industry with clear delineation of roles between regulation and profit-driven business units, emphasizing that the Act includes fiscal incentives to encourage investment in gas development and local refining.

“Through focused funding for renewable energy development and local content, it also provides extraordinary care for host communities and future energy security,” he said.

According to him, gas has been designated as a transition fuel toward Nigeria’s goal of net zero carbon emissions under the “Decade of Gas Initiative.”

He emphasized, “We must discover ways to unlock Nigeria’s natural gas and domestic production potentials and lift millions of our people out of energy poverty.”

He said that the government has backed vital projects like NLNG Train 7, the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, the Nigeria/Morocco Gas Pipeline, the Trans-Saharan Pipeline, and the National Gas Transportation Network Code.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Chief Executive, represented by Francis Ogaree, Executive Director, Hydrocarbon Processing Plants, Installations and Transportation Infrastructure, NMDPRA, called for increased collaboration with NCDMB and continued engagement with licensees.

He also stressed the importance of continued business continuity and profitability, as well as continuous PIA functional implementation.

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