Kachikwu gives updates on Nigerian govt’s plan to build modular refineries
given updates on the federal government's plans to have modular
refineries built in Nigeria.
According to him, the plan had begun to gain some traction as
equipment for some of them were expected to arrive the country soon.
Speaking through his Senior Technical Adviser on Efficiency, Mr.
Johnson Awoyomi, at the 2018 edition of the annual Oloibiri Lecture
Series and Energy Forum (OLEF) in Abuja yesterday, the Minister
explained that institutional investors had also begun to show
interests in investing in modular refineries in the Niger Delta.
Kachikwu also stated that the government was in talks with the Central
Bank of Nigeria (CBN), International Finance Corporation (IFC), and
Nigerian Sovereign Investment Authority (NSIA) amongst others to
provide contributory finance to investors in modular refineries in the
Niger Delta region.
He added that the government would as part of incentives to encourage
investments in modular refineries, guarantee regular crude oil supply
to them, in addition to tax and customs duties waivers that would be
given to them.
Kachikwu further noted that the government has made tremendous
progress in its modular refineries campaign to improve Nigeria's
capacity to refine petroleum products in-country.
He said: "The efforts in Big Win 2 – Business Environment and
Investment Drive, on improving our business environment have yielded
positive results. We have been able to attract investors into the
entire value chain. Our assiduous refinery drive has resulted in an
almost-concluded process that would stimulate the flow of private
investments into the revamp of our three refineries.
"Modular refineries have also successfully garnered traction, with
already established modular refinery equipment on their way to the
ports of Nigeria. Institutional investors are portraying confidence in
the productive engagements we have had with the Niger Delta.
"Via our Big Win 5 – Transparency and Efficiency, we have successfully
implemented necessary actions that have lowered the unit technical
cost of production. A specific example is advocating for more
collaboration across the entire value chain of our petroleum industry;
this has resulted in elimination of duplicated efforts.
"Costs decline due to lesser capital that would have initially being
expended in exerting single efforts."
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