Six oil refinery licences have expired: New Telegraph
Six oil refinery licences with 91,000 barrels per day cumulative capacity expired last month (August), raising the total num- ber of stagnant and expired licences in this category to 36, investigations by New Telegraph have revealed. First of the refinery licences 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 Licence 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 licence 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.
Thirty of the 43 licences granted by the DPR to set up private refineries in Nigeria have earlier expired without going beyond the initial level of Licence to Establish (LTE). Another seven of these licences 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 licence 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.
The report revealed that the 650,000 bpd Dangote Oil Refinery Company, located in the Lekki Free Trade Zone, Lagos, had been granted Detailed Engineering Design Approval by the industry regulator and it has targeted the 2019 date for takeoff. The Dangote Refinery is projected to commence operations in 2019, and is expected to help Nigeria attain self-sufficiency in petroleum refining. Likewise, the 24,000bpd Kaiji Resources Limited, Oguta, Imo State, which has also been granted Front End Engineering Design Approval
Meanwhile, the DPR has slammed demand for gas development as fresh condition for renewal of expired oil blocs. The condition was met before the agency renewed Oil Mining Lease (OML) 133 for another 20 years. The renewal secured by Yinka Folawiyo was announced last weekend.
The Yinka Folawiyo Petroleum received consent from the Minister of Petroleum Resources for the imrenewal of the OML 113 licence.
The company was, according to MX Oil, granted the renewal for another term of 20 years. The renewal is subject to the satisfaction of certain conditions, including a commitment to develop the gas potential of the license. The OML 113 licence is operated by Yinka Folawiyo Petroleum with New Age, Energy Equity Resources, MX Oil, and Panoro as its partners. The licence, located in the western part of Nigeria in the Dahomey Basin, holds the Aje field, which saw first oil flow from it back in May 2016.