Modular Refinery ’ll End Fuel Scarcity, Says DPR

The Department of Petroleum Resources (DPR) has advised investors in the oil and gas sector to embrace small refineries in order to put an end to fuel scarcity in the country.
The Deputy Director, Downstream Sector of DPR, Mr. Alphonsus Mudi, gave the advice during the NewsDirect Quarterly Roundtable Conference on Nigerian Economy in Lagos yesterday.
The theme of the programme was: “Setting Agenda For New Government On Private Refineries, Power Supply, Indigenous Participation and Financing”.
Mudi described investments in modular refineries as the new way to go in order to stop importation of petroleum products.
He said that a modular refinery was cheaper and was capable of being moved from one place to another.
The deputy director said that modular refineries were capable of handling refining capacity of between 10,000 and 35,000 barrels of crude oil per day.
He lamented that out of 18 investors that had license to operate refineries in 2007, only one of them was producing today.
“Only the Niger Delta Petroleum Resources (NDPC) was able to set up its refinery with a total capacity of 1,000 barrels per day.
“But what they are producing is for their consumption, they are refining only diesel.
“The other 17 investors said that they were having many challenges, including funding, securing crude for use and government incentives.
“We tried to assist them by directing them to where they could get crude oil, but unfortunately, they could only get it at the world price. “But till today, we have not seen them again”, he said.
Mudi, however, gave assurance that DPR was ready to issue license to investors interested in building modular refineries.
the former Executive-Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA), Dr. Oluwole Oluleye, advised the government to create conducive environment for indigenous participation in the oil and gas sector.
According to him, whether government wants to remove subsidy or not, Dangote has already started business.
“Dangote is thinking ahead and he is creating job opportunities for Nigerians”, he said.

He urged the government to put power supply right, adding that it would have positive results on the masses.
A former Commissioner of Finance in Osun State, Mr Wale Bolorunduro, who was the guest speaker, urged the Federal Government to legalise illegal refineries.
Bolorunduro said that government should call those involved in illegal refineries and make them to do it legally.
The Editor-in-Chief, NewsDirect, Dr Samuel Ibiyemi, said that the purpose of the conference was to deliberate on the challenges facing the public and private sectors in business.
According to him, it is also in recognition of the sectors’ collaboration in promoting in-country manufacturing of a value adding commodities to boost industrialisation.
Ibiyemi said that the problems could be traced to lack of government policies to encourage funding of projects by Nigerian banks and crude oil supply guarantee for private refineries.