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N10bn Investment to reduce petrol import, create 1,500 jobs

N10bn Investment to reduce petrol import, create 1,500 jobs 

…As NCDMB, Erakson, Duport pact seek industrialisation through oil, gas sector

Nigerian Content Development and Monitoring Board (NCDMB), and some private investors may reduce unemployment in Nigeria by 1,500, and limit the importation of Premium Motor Spirit (PMS) also called petrol through a new investment worth N10 billion ($25 million).

With the poor state of the country’s existing refineries, the investment comes amid continuous reliance on importation of PMS into Nigeria, even as it is a major exporter of crude oil; a development that has drained government’s revenues with spending on subsidy.

Indeed, the Executive Secretary of the board, Simbi Wabote, who disclosed that the agency was working hard to domesticate skills required to run modular refineries in the country, noted that a 2,500 barrels per day (bpd) modular refinery, 30MMscfd gas processing facility and 2MW power plant are expected from the new investment.

Speaking during a virtual signing of equity investment agreements with Duport Midstream Company for the establishment of an Energy Park, and Eraskon Nigeria Limited, for a lubricating oils blending plant, Wabote said investments that would improve skills, create jobs and catalyse industrialization were a priority for the agency.

Recall that the board has been part of a 5,000bopd modular refinery being developed by Waltersmith Refining and Petrochemical Company, boasting of a 30 per cent equity financing.

It also, among others, acquired equity in the 12,000bpd Azikel Hydroskimming Modular Refinery being constructed by Azikel Petroleum Limited at Obunagha, Gbarain, Bayelsa State. The refinery is expected to produce about 1.3million litres of PMS daily as well as diesel, kerosene, mixed liquefied petroleum gas (cooking gas) and a small percentage of heavy fuel oil.

Wabote said the proposed lubricating plant with a capacity for 45,000 litres daily would be the first of such a plant in Bayelsa State, and would enhance the availability of engine oils, transmission fluids, grease, and other products.

He explained that the investments were part of the approvals granted recently by the Board’s Governing Council chaired by the Minister of State for Petroleum Resources, Timipre Sylva.

He added that the investments were coming under the Board’s commercial ventures programme, and was in line with the Board’s vision to serve as a catalyst for the industrialisation of the Nigerian oil and gas industry and its linkage sectors

Wabote indicated that the Duport partnership is in furtherance of the Board’s strategy to enhance in-country value addition by supporting the establishment of processing facilities close to marginal or stranded hydrocarbon fields.

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