JOHANNESBURG,
South Africa, December 23, 2019/ -- Phase one of the modular refinery
and the
ground breaking ceremony of the phase two is expected to hold in
May 2020; The Waltersmith project has already reached 90 percent
completion; The project falls in line with H.E. Chief Timipre Sylva’s
objectives to foster private sector participation in increasing domestic
refinery capacity.
Last week, Nigeria’s Minister of State for
Petroleum Resources, H.E. Chief Timipre Sylva paid an inspection visit
to the Waltersmith Modular Refinery in Ohaji/Egbema LGA, Imo State.
Accompanied
by Executive Secretary of the Nigerian Content Development Monitoring
Board (NCDMB) Engr. Simbi K. Wabote, Minister Sylva said the Federal
Government would continue on its efforts to ensure that the project
meets the set deadline where phase one (5,000 bpd) of the modular
refinery and the groundbreaking ceremony of phase two, which is targeted
at delivering 25,000 bpd crude and condensate refinery; designed to
produce gasoline, diesel, LPG, kerosene and aviation fuel, is expected
in May 2020.
The minister said that the overall expectation of
the site visit where the project that has already reached 90 percent
completion, “was to see indigenous Nigerian Companies do well and the
Waltersmith Modular Refinery is a major bright spot which has recently
been incorporated into the Nation’s projection for petroleum product
sufficiency and availability.” Further, the minister directed that the
NCMB and Waltersmith Petroman Oil Limited (Waltersmith) should centre
their attention to corporate social responsibility which will ensure a
“sustained and successful relationship with the host community.”
To
this, AbdulRazaq Isa, Chairman of Waltersmith said the project’s first
phase would create several direct and indirect jobs for the host
community.
“This project is crucial for the development of the
refining sector on the continent. Alongside the Dangote refinery which
is slated for completion in early 2021, Nigeria is quickly setting an
example for the role private investment stands to play in the
development of the industry’s capabilities,” said NJ Ayuk, Executive
Chairman of the African Energy Chamber. “Nigeria is Africa’s largest
crude producer, yet it lacks the refining capacity to meet its own fuel
needs and through projects like these, the country is effectively making
the move towards addressing this issue,” he added.
The public-partnership sees Waltersmith holding a 70 percent interest while NCDMB holds the remaining 30 percent.
One
of the main drives for the development of this project include the
crude loss which comes as a result of crude handling and the cost of
crude transportation from the marginal fields owned by Waltersmith, said
AbdulRazaq Isa who also explained that the first phase of the project
is expected to contribute an estimated 271 million litres of refined
products including Diesel, Naphtha, HFO and Kerosene annually to the
domestic market.
The project reached FID in September 2018 with an 18-month Delivery time from November 2018 to May 2020, for phase one.
Waltersmith
Petroman Oil Limited is a wholly owned Nigerian integrated energy
company. It is operator of the 7000 bpd Ibigwe field located on the OML
16 in the eastern Niger Delta and is also active in the OML 34 in Niger
Delta Western Ltd where it holds a 8.33 percent stake.
Following a
competitive bidding process in EGRonda 2019, the company was awarded a
40 percent stake in Block EG-23 earlier this month, allowing it to take
operatorship of the asset.
The Block is located in Equatorial
Guinea’s Niger Delta basin. This acquisition forms part of the company’s
expansion plan which will see it venture further into Africa as it
works to participate in accelerated production and extended value
creation.
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