Minister Identifies Modular Refineries Quickest Way To Fix Nigeria’s Energy Problem

Nigeria’s Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri has said that the fastest way to fix Nigeria’s energy challenge is through modular while the big refineries are being comprehensively revamped.

This is just as he commended Waltersmith Group and the Nigerian Content Development and Monitoring Board (NCDMB) for supporting the Federal Government’s agenda of improving domestic refining capacity.

The minister expressed his satisfaction toward the company and NCDMB for taking the bull by the horns to commence local refining of crude and partially meeting the demand of the locals.

Lokpobiri spoke during a facility tour of Waltersmith Petroman Oil Limited, Ibigwe, Ohaji-Egbema Local Government Area of Imo State, on Tuesday, according to a statement issued by the Corporate Communications of NCDMB on Wednesday evening.

“The quickest way to fix our energy challenge in the country should be through modular refineries, while we await the total rehabilitation of the big refineries”, he said.

He noted that the 5,000-barrel per stream day Waltersmith Petroman had been a stable source of diesel, kerosene, naphtha, and high-fuel oil to the domestic market since its commissioning in 2020 and that it indicated proof of how beneficial such smaller processing plants could be.

Lokpobiri commended the NCDMB for taking up equity in Waltersmith Refinery which quickly facilitated the completion of the modular refinery.

While also lauding Waltersmith Group, he charged companies who had been given the license for modular refineries and marginal field licenses to take cues from Waltersmith and make deliberate investments.

He said, “If you have a marginal field, an allocation, it is a paper given to you, it doesn’t add value to you or Nigeria unless you take it to the next level by making the requisite investment and then adding the value that is expected.

“What I am seeing is that out of the numerous marginal fields that were allocated, only Waltersmith and a few of them have been successfully driven,” he stated, recalling that he had sounded a warning at the recent Nigeria Economic Summit Group (NESG) event in Abuja that marginal field allocations without the requisite investments stand the risk of being canceled.

Explaining the imperative of such a line of action, the minister said, “It is important that we make this point so that we can retrieve some of those fields to the basket,” to reallocate such assets to those able and prepared to develop and exploit them to the benefit of the industry and the nation.

He revealed that he had obtained presidential approval to conduct a fresh round of bidding, which would take place soon, promising that “marginal fields would (henceforth) be prioritised in terms of their location to those who have modular refineries so that they will be able to produce.”

While acknowledging the remarkable success story of Waltersmith, whose management had announced plans for further expansion, Lokpobiri said, “I can assure you that this Government will do whatever we can to support you so that you can continue to grow.”

Similarly, he praised the NCDMB whose direct involvement through equity participation, greatly facilitated the take-off and operations of the refinery.

In his remarks, the Executive Secretary of NCDMB, Simbi Wabote said the decision of the board to participate as an equity holder in Waltersmith was informed by its sense of mission and the impressive organizational arrangement within the company.

According to him, NCDMB had no hesitation to partner with Waltersmith, “given the very clear corporate governance that is required and exists within the company,” adding that “part of our mandate is to enhance development and we see ourselves as catalysts for the industrialisation of Nigeria.”

“At NCDMB, we are proud of what we have achieved here (at Waltersmith),” he declared.

The President and Group Chief Executive Officer of Waltersmith Petroman Oil Limited, Mr. Abdulrasaq Isa, said part of the expansion plans of the company was to raise the capacity of the processing plant from the present 5,000 to 40,000 barrels per stream day and to be able to produce two million tonnes of petroleum products per annum.

The refinery has so far supplied a total of 600 million litres of petroleum products to the Nigerian market since its commissioning in 2020.