Additional Company Information
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Establishment of Private Refineries - FG Still on Track …Achieves an appreciable level of gas-flare reduction
12th May, 2010
With the Amakpe refinery project almost at completion stage, the Federal Government's policy of encouraging the establishment of private refineries as a viable alternative to the existing ones seems to be having the desired effect.
This disclosure was made recently in Lagos during the first quarter media briefing hosted by the Department of Petroleum Resources. It was revealed that the Amakpe Refinery project would soon be completed for eventual commencement of operations.
The progress made was partly attributable to the close working relationship between the company and the DPR right from the project design stage through construction and up to its present stage.
DPR management expressed optimism that the other licensees who were yet to move at the same pace as Amakpe, would strive to live up to expectations of Government by showing enough commitment and know-how in the issue of establishing these refineries so as to combine and contribute an aggregate of 483,000bpd to the Nation's refining capacity.
These other prospective refineries include; Sapele Petroleum Refinery (120,000bpd); Amaium Refinery (100,000bpd); Resource Petroleum Refinery (100,000bpd); Gasoline Refinery (100,000bpd); Antonio Oil (27,000bpd); Ologbo Refinery (12,000bpd) & Rehoboth Refinery (12,000bpd).
Management also decried the action of some speculators whom it accused of applying for refinery in the hope they would automatically qualify for crude oil lifting.
It was reiterated that crude oil would only be given for refineries that have met all completion conditions of the DPR. Furthermore, the quantity of crude that would be allocated would only be commensurate to the installed capacities of the established refineries.
In another development, it was revealed that strategies implemented by the Department, which involved encouraging operators to produce their wells to the maximum allowable rate after mandatory shut-ins, have led to appreciable gas flare reduction from 2.5 Bcf/day to 1.9 Bcf/day.
The Department admitted that though this was a long way off Government's target of zero flare-down, the DPR had to tread sensibly in its punitive measures towards the operators since there has to be a balance against Nigeria 's economic aspirations from oil production.
Nigerians were however assured that DPR will spare no effort in ensuring that Government's target of zero flare-down by 2012 is achieved in the long run.
