DPR Calls For Effective Mix Of Large And Small Modular Refineries

DPR Calls For Effective Mix Of Large And Small Modular Refineries

Deputy Director, Department of Petroleum Resources (DPR), Olumide Adeleke, has said that Nigeria requires a mixture of large and smaller modular refineries to achieve self-sufficiency in crude oil processing, to become an exporter of petroleum products in Africa, The Nation reports.

According to him, the four state-owned refineries – Port Harcourt 1 &2, Warri and Kaduna refineries are operating below installed capacities of 445,000 barrels per day (bpd), adding that it was a setback to the country’s goal of providing fuel for the domestic market aside making fuel available for export. At an industry forum in Lagos, Adeleke said when Dangote Petrochemical and Refinery starts production in 2019, the country would be at an advantage to distribute enough fuel in the country, and export the product to other countries.

The decision by the Federal Government to license operators that wish to invest in modular refineries a few years ago, was part of efforts to encourage processing of crude oil in the country, he said. He, however, said the DPR, which issued the licences on behalf of the government, was not happy that many of the operators are yet to begin processing of crude oil. Adeleke also said co-location is good, when firms established for that purpose are situated where refineries are. He said co-location is currently going on at the Port Harcourt refinery.

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