The Nigerian Content Development and Monitoring Board (NCDMB) has acquired equity in the 12,000-barrel per day Azikel Hydro-skimming modular refinery. The refinery is located in Obunagha, Gbarain, Bayelsa State.
The refinery, when completed in 2021, will produce about 1.3million litres of premium motor spirit (PMS) (petroleum) as well as diesel, kerosene, mixed liquefied petroleum gas (cooking gas) and a small percentage of heavy fuel oil per day.
NCDMB executive secretary, Simbi Kesiye Wabote and Director of Finance and Personnel Management Mr. Isaac Yalah signed the Shareholders Agreement and the Share Subscription Agreement, while Azikel Petroleum Limited President Dr. Eruani Azibapu Godbless and Vice President Mr. Presley Asemota signed for the company.
Wabote, who spoke at the ceremony, said Azikel modular refinery is the second and largest in the Board’s portfolio, adding that the partnership would help in creating jobs, value retention, making petroleum products available and develop in-country capability.
The project, he said, “fits perfectly with the company’s vision of serving as catalyst for the development of Nigeria’s oil and gas sector”.
According to him, the NCDMB was in the final stages of commencing partnership in the development of another modular refinery in Calabar, Cross River State capital before the end of 2019, adding that the NCDMB is proud to be part of the journey to wean Nigeria from massive importation of petroleum products.
“Our data analytics showed that we can more than double the contribution of the oil sector to the Gross Domestic Product if we achieve the current growth trajectory with the refurbishment of existing refineries, completion of the Dangote Refinery, and ongoing modular refineries, to bring refining to about 50 per cent of our oil production capacity from the current level of below 20 per cent,” he said.
The Executive Secretary further explained that the Board’s intervention extends to gas processing and utilisation and has progressed discussions with partners on the establishment of LPG cylinders manufacturing plant, LPG depots, and gas processing facilities. ’’One of the projects of interest is the establishment of an Inland LPG Depot in Abuja to complement Federal Government’s LPG penetration initiative. This project is part of the gas value chain as it utilises condensate which is one of the bye-products from gas processing.”
He commended President Muhammadu Buhari for his foresight in approving the licensing of modular refineries as strategic solution for promoting local refining of petroleum products, job creation and industrialisation. He also announced that Shell Petroleum Development Company (SPDC) would partner Azikel Refinery by providing crude feedstock from its oil fields.
Dr. Eruani, while commenting, described NCDMB’s partnership in the modular refinery project as historic, highlighting that the Board has gone beyond its role as regulatory agency to serve as catalytic agent to develop the infrastructure needed to address insufficiency of refined petroleum products in Nigeria.
“The equity participation from NCDMB sends positive signals not just to the local people, but to the international community. This confirms to the international community that the Nigerian state is ready to revive the economy and that Bayelsa State is well positioned to ensure that more investors come in and domicile their investments,” he said.
The company, he noted, was licensed in 2015 as part of the current administration’s efforts to liberalise the downstream sectors for private participation and it has maintained the lead among 36 other licensed modular refineries.
