Nigeria: Six Refinery Licenses Expired in August

SEATTLE (Oil Monster): Six oil refinery licenses with 91,000 barrels per day cumulative capacity expired last month (August), raising the total number of stagnant and expired licenses in this category to 36, investigations by New  Telegraph have revealed. First of the refinery licenses to expire within a  two-year window, according to a document on refinery license status update of the   Department of Petroleum Resources (DPR) obtained by this newspaper, is the License to Establish (LTE) a 20,000 barrels per day   modular refinery given to Southfield Petrochemical & Refinery Ltd., Owanoba, Edo State.

The modular plant capable of producing Gasoline, LPG, kerosene (DPK), diesel (AGO), and low pour fuel oil (LPFO) received a two-year LTE from DPR in August 2016. The same fate befell the modular refinery license to Don Mac Ltd., Oben, Edo State, which also expired in August 2018. It was issued by the DPR, according to the refinery status update of the agency, for a 10,000 barrels per day modular refinery capable of producing Gasoline, kerosene (DPK), diesel (AGO), and low Pour fuel oil (LPFO).

“It commenced Front End Engineering Design, but yet to submit to DPR for review and approval,” the DPR said. Also, the LTE for a 5,000 barrels per day modular refinery, issued to Ikwe-Onna Refinery Ltd., did not pass the fund sourcing stage before it also expired last month.

Similarly, the 6,000 barrels per day Approval to Construct/Relocate (ATC) license given to Dee Jones in June 2016 also made the list. The license for modular plant capable of producing naphtha, kerosene (DPK), diesel (AGO), and low pour fuel oil (LPFO) expired in August 2018.

The same fate befell the 30,000 barrels per day modular refinery license issued to Shepha Petroleum & Petrochemicals Company Limited, Ovrode, Delta State, which also expired. It remained at fund sourcing stage before its expiration. The first notice of expiration for the licence was given last June.

On this same category is the 20,000 barrels capacity modular refinery licence issued to Conodit Refinery Nigeria Limited, Umukwata, Delta State, which also lapsed within the same period. Six years after being granted licenses, the 36 licensees are yet to record meaningful progress in terms of construction of their refineries.

Thirty of the 43 licenses granted by the DPR to set up private refineries in Nigeria have earlier expired without going beyond the initial level of License to Establish (LTE). Another seven of these licenses expired last August, bringing the total 28, which had been idle for three years. The case is, however, different for the 650,000 barrels per day Dangote refinery license and a few other licensees, which have gone beyond the LTE stage.

The 5,000 barrels per day (BPD) capacity Waltersmith Refining and Petrochemical Company Limited, located in Ibigwe, Imo State, is one of these refineries that had gone beyond LTE to approval to construct (ATC). Clairgold Oil and Gas Engineering Limited, Niger Delta Petroleum Resources, and Dee Jones, have also advanced to the level of construction.

 Courtesy: www.newtelegraphonline.com