Sylva seeks CBN's special fund for modular refineries

• Published date: 10 January 2023
• Publication title: Nigeria - The Nation

MINISTER of State for Petroleum Resources, Timipre Sylva, is pushing for an intervention fund from the Central Bank of Nigeria (CBN) to support modular refineries.

The minister said the Federal Government was addressing the challenge of access to crude oil being faced by the modular refineries.

He also informed that the government took 30 per cent equity stake in each of the 5000bpd WalterSmith modular refinery in Ibigwe, Imo State and the 10,000bpd Duport Modular Refinery in Edo State, among others.

According to him, the completed modular refineries were contending with (feedstock) domestic supply obligation challenges, seeking crude supply from the Nigerian National Petroleum Company Limited (NNPCL) 60% equity.

He said: 'Key issues are crude supply obligation for completed refineries. Support is required in the area of crude supply from NNPC 60% equity.'

Sylva, who spoke during the President Muhammadu Buhari administration scorecard (2015 - 2023) presentation in Abuja, the minister noted that the rehabilitation of 60,000 barrels per day Port Harcourt Refinery Company (PHRC) has been completed and set to begin production by the first quarter of this year.

'What he (Mele Kyari) is saying is that the rehabilitation of the 60,000 barrels per day is being completed and it is going to be started in first quarter,' he said.

Sylva's confirmation came on the heels of the Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer, Mallam Mele Kyari's explanation that it was not practical to start the production in the last quarter of last year as promised.

Kyari noted that rehabilitation of the refineries took 42 months from the date of signing its contract.

He said: 'The rehabilitation of the refinery will take 42 months from the date of the award of the contract. And typical of every refinery, we do their rehabilitation in phases and by our plan, we promise to start off the polyplastic 60,000 barrels per day complete the activity by the last quarter of 2022.

'But it is not practical. But we will start it up in the first quarter of 2023. Otherwise every other process is going on.'

According to the minister, the Dangote Refinery in which the NNPCL holds 20 per cent shares, Waltersmith 30 per cent shares, Azikeil 30 per cent and Duport 30 per cent will come on stream this year.

He said: 'We have also taken 20% equity in Azikeil refinery and Waltersmith 30% and Dupur refinery. Dupur is already finished. We have concluded the construction. It is only...