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Tag: refineries

  • FULL LIST: Top 11 largest oil refineries in the world

    FULL LIST: Top 11 largest oil refineries in the world

    Dangote Group has signed a contract valued at over $350 million with India’s state-owned Engineers India Limited (EIL).

    The development was disclosed by EIL in a statement released recently. Under the agreement, EIL will serve as the Project Management Consultant (PMC) and Engineering, Procurement and Construction Management (EPCM) consultant for the expansion.

    This replicates the role it played in the delivery of the existing 650,000 barrels-per-day refinery, which was commissioned in 2024.

    The Refinery will be expanded from 650,000 barrels per day to 1.4 million bpd.

    The expansion will be executed through the addition of a second processing train and will focus on the production of Euro VI–compliant fuels.

    Beyond refining, the project also includes a major scale-up of petrochemical output. Dangote plans to increase polypropylene production from 830,000 tonnes per annum to 2.4 million tonnes per annum by revamping its existing polypropylene unit, installing an additional 1.2 million-tonne unit, and adding a 750,000-tonne UOP Oleflex unit to boost propylene feedstock supply.

    Here are 11 largest oil refineries in the world

    1. Dangote Refinery, Nigeria (2023, Expansion Ongoing)

    Owner: Dangote Industries Limited

    Commissioned in 2023, the Dangote Refinery in Lagos is Africa’s most ambitious industrial project and the newest refinery on this list. Currently operating at 650,000 barrels per day (bpd), the facility is set for expansion to 1.4 million bpd, positioning Nigeria as a major global refining hub and significantly reducing fuel imports across Africa.

    2. Jamnagar Refinery, India (1999, Expanded 2008)

    Owner: Reliance Industries Limited

    Launched in 1999 and expanded in 2008, the Jamnagar Refinery in Gujarat is the largest oil refinery complex in the world, with a capacity of 1.24 million bpd. The ultra-modern facility is renowned for its efficiency, advanced technology, and strong export orientation.

    Read Also: Troops destroy seven illegal refineries, recover 109,000 litres of stolen products in Niger Delta

    3. Ruwais Refinery, United Arab Emirates (1982, Expanded 2015)

    Operator: Abu Dhabi National Oil Company (ADNOC)

    Built in 1982 and significantly upgraded in 2015, the Ruwais Refinery now processes 827,000 bpd. It stands as one of the Middle East’s largest refining complexes and a cornerstone of ADNOC’s downstream expansion strategy.

    4. Onsan Refinery, South Korea (1979)

    Operator: S-Oil Corporation

    Operational since 1979, the Onsan Refinery has a processing capacity of approximately 669,000 bpd. It is widely recognized for innovation and the production of ultra-clean fuels that comply with strict international environmental standards.

    5. Yeosu Refinery, South Korea (1969, Expanded 2021)

    Operator: GS Caltex

    Established in 1969, the Yeosu Refinery boasts a capacity of 840,000 bpd. Its 2021 expansion introduced cutting-edge environmental technologies, reinforcing its status as one of Asia’s most efficient and eco-friendly refining facilities.

    6. Ulsan Refinery, South Korea (1964)

    Operator: SK Energy

    Commissioned in 1964, the Ulsan Refinery is South Korea’s largest, with a capacity of 850,000 bpd. Known for its technological sophistication, the facility produces a broad range of fuels and petrochemical products for domestic use and export across Asia.

    7. Paraguaná Refining Complex, Venezuela (1950s)

    Developed in the 1950s, the Paraguaná Refining Complex combines three refineries — Amuay, Cardón, and Bajo Grande — with a total capacity of 940,000 bpd. It remains one of the largest refining hubs in the Western Hemisphere and a critical asset in Venezuela’s oil industry.

    8. Ras Tanura Refinery, Saudi Arabia (1945)

    Operator: Saudi Aramco

    In operation since 1945, Ras Tanura is one of the world’s most strategically important oil facilities. With a capacity of 550,000 bpd, it anchors Saudi Aramco’s downstream operations and plays a vital role in global energy exports.

    9. Galveston Bay Refinery, United States (1931, Expanded 2019)

    Owner: Marathon Petroleum Corporation

    Built in 1931, the Galveston Bay Refinery in Texas City has grown into a major refining powerhouse, processing 631,000 bpd. Its 2019 upgrades improved efficiency and sustainability, strengthening its position in both U.S. and international markets.

    10. Baton Rouge Refinery, United States (1909, Expanded 2023)

    Owner: ExxonMobil

    Established in 1909, the Baton Rouge Refinery in Louisiana is one of North America’s largest and most advanced facilities. With a capacity of 520,000 bpd, continuous modernization — including a 2023 expansion — keeps it central to the U.S. energy supply chain.

    11. Port Arthur Refinery, United States (1903, Rebuilt 2002)

    Operator: Motiva Enterprises

    Commissioned in 1903, the Port Arthur Refinery in Texas is among the oldest operating refineries in the United States. Following major rebuilding and expansions in the early 2000s, it now refines around 600,000 bpd, serving as a critical hub for the Gulf Coast energy network.

  • FG issues 23 refineries ‘license to establish’ in four years

    FG issues 23 refineries ‘license to establish’ in four years

     …crude oil supplied to local refineries exceeds 40,000 bpd in 2025

    In the last four years of the enactment of the Petroleum Industry Act (PIA), the Federal Government has issued 23 refineries ‘licenses to establish.’

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed this at the maiden conference of the Energy Correspondents Association of Nigeria (ECAN) in Abuja on Thursday.

    The theme of the conference was “Four Years of the PIA: Achievements, Gaps and the Road Ahead’’, 

    NMDPRA Director Legal Tolurosho Joseph, who represented him said upon completion, the plants will add over 850,000bpsd refining capacity to the present 1,125,000bpsd.

    He said, “23 refineries ‘License To Establish’ were issued from 2021 to date which when constructed and commissioned will add over 850,000bpsd refining capacity to the existing 1,125,000bpsd capacity.”

    He said crude oil supply to domestic refineries rose from about 20,000bpd in 2023 to above 40,000bpd in 2025. 

    According to him, this is enabled by NMDPRA’s implementation of 2021 PIA provisions.

    READ ALSO: PDP suffering from self-inflicted injuries, says Wabara

    Ahmed said refined product supplies from local refineries to the domestic market have experienced drastic improvement.

    He specifically noted that Premium Motor Spirit (PMS) supply grew from 1.3 billion litres in 2024 to 3.8 billion litres in 2025, and the outlook is positive.

    The Authority Chief Executive said the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has Invested over N287 billion in various gas infrastructure projects with 16 companies across 62 projects as of October 2025. 

    He added that the MDGIF catalysed an additional $500 million investment to Gas infrastructure by leveraging on AFRIEXIM Bank MOU to expand energy access to drive economic development.

    According to him, UTM Offshore, NLNG train 7, AKK gas pipeline, OB3 gas pipeline, AIPCC refinery, Indorama fertilizer plant and Greenville’s LNG & LCNG projects, Walthersmith Refinery Train 2, Supertech’s Methanol Project are some of the key midstream and downstream facility development projects that brought significant investments into the sub-sector.

    He also said 10 Gas distribution Licenses were issued for 10 gas distribution zones covering a pipeline network stretch of 692km, with carrying capacity of 712MMscf/day, connecting a total of 412 customers.

    The NMDPRA boss said the total investment value in this distribution system was estimated at $639.07 million with multiplier effect across energy, agriculture, industry, manufacturing and socio-economic impacts.

    According to him, the NMDPRA developed Gas Trading and Settlement Regulations in 2023, which applies to activities connected to the establishment of secure, reliable and efficient trading and settlement systems for natural gas and other gas commodities on exchange platforms regulated by the Authority.

    This, he said, led to the Award of License to Establish and Operate the first ever Gas Trading Exchange in Nigeria in May 2025 to Jex Market Limited.

    Ahmed said through efficient and prudent regulation, the Authority facilitated a steady supply of petroleum products in the country with product sufficiency within an average of 12 to 48 days, thereby eliminating fuel shortages and thereby catalysing economic activities across Nigeria.

    In partnership with Platts S&P Global, according to him, NMDPRA convened the first ever West African Product Reference Market Conference with key milestone outcomes, in May 2025. 

    He added that one of the major agreements at the summit was to work towards making Nigeria (Lagos) a subregional hub for product price referencing and market offtake.

    Noting that the conference coincided with the fourth anniversary of the NMDPRA, he said, “To be invited at a time when we in the Authority are marking the 4th anniversary of our establishment as a Regulatory Agency, to reflect on our achievements, challenges and the look ahead, all within the context of our grundnorm, by the Petroleum Industry Act 2021, is indeed a commendable coincidence.

    “In the last 4 years, whenever I have had the opportunity to speak about our achievements and challenges at the NMDPRA, it always fills me with pride because on each occasion I am able to report that we are making very tangible progress at each step of the journey, even as we learn new ways to surmount challenges or turn them into building blocks of growth as an agency. 

    “And today, with the theme “Four Years of the PIA: Achievements, Gaps and the Road Ahead’’, I believe we have another big opportunity to profoundly reflect on the journey so far and to showcase to the world just how far we have been able to positively change the dynamics of regulation in the midstream and downstream oil and gas sector.”

  • IPMAN seeks privatisation of refineries, expresses readiness to manage facility

    IPMAN seeks privatisation of refineries, expresses readiness to manage facility

    The Independent Petroleum Marketers’ Association of Nigeria (IPMAN) has called on the federal government to consider the privatisation of the nations refineries.

    The national president of the association, Abubakar Shettima, made the call on Tuesday while speaking at the Annual General Meeting (AGM) of the Western Zone of the petroleum union which held at Kakanfo Inn, Ibadan.

    The IPMAN boss said privatising the refineries will bring out its optimum performance, but warned that either selling off or privatising, competence of the buyers or partners must be considered.

    He urged the government to consider the Association as a competent hand that can manage the refineries, should the government be willing to privatise or sell off.

    Read Also: Brain drain: Our hospitals may soon be empty, CMDs cry out

    Shettima said: “Looking at the privatisation of those public refineries, yes, actually, it’s better to let them privatise these refineries, and especially they should give the proper people that are concerned, like independent petroleum marketers. 

    “If the government can try as much as possible and sell these refineries to independent petroleum marketers, it will add more value to Nigeria.”

    He expressed optimism that the price of Premium Motor Spirit (PMS) would continue to drop, particularly with the coming up of more refinery.

    “We are expecting a decrease in the rate of PMS with the coming of the refinery. Now that the Port Harcourt refinery has started working, definitely there will be a decrease in price. 

    “Immediately, when the whole refineries are functioning, then the pressure in Nigeria will become less, and the dollar will come down. Immediately when the price of dollar is down, definitely the price of the petroleum product will come down”, he added.

    He also lauded President Bola Tinubu for taking bold and drastic steps in ensuring energy security in the country, saying “immediately, Mr. President Bola Ahmed Tinubu came to power, he has done the right thing by deregulating the oil sector so that investment will come into the country. 

    “And during this festivity, if we observed, there was no queue anywhere. Fuel is available everywhere, and the price of the petroleum product is coming down compared to the tradition that we knew before, despite the fact that there was subsidy. Mr. President is on the right track in engendering energy in the country.”

    Highpoint of the AGM was the election of Zonal Executives for the association which saw Chief Oyewole Joseph Akanni emerging as the new Zonal Chairman. 

    In his acceptance speech, Akanni lauded the efforts of his predecessor, Alhaji Dele Tajudeen, saying his leadership and vision were instrumental in shaping IPMAN Western Zone into what it had become.

    He assures that his leadership would build on the successes of the Tajudeen-led administration. 

    He said: “Your dedication, wisdom, and unwavering commitment to our mission have inspired us all, and I am deeply grateful for the opportunity to build upon the foundation you have laid. As a functional and participatory Vice Chairman in the last administration under your leadership, I am pleased to affirm that this new administration will be an administration of continuity, building upon the excellent foundations and initiatives that you so ably started.”

    He pledged to work collaboratively and harmoniously with all and sundry and serve the association diligently, saying “I am committed to working collaboratively with every one of you and the regulatory agencies assigned to our business by the federal government to address these challenges, leverage our strengths, and drive our association forward.”

  • Refineries: You’re a jinx breaker, Ex-Rep hails Tinubu

    Refineries: You’re a jinx breaker, Ex-Rep hails Tinubu

    A former member of the  House of Representatives, Bamidele Faparusi has commended President Bola Tinubu for revamping the Warri and Port  Harcourt Refineries, after being moribund for over four decades.

    Faparusi, who described Tinubu as a jinx breaker, said the restoration of the ailing refineries further confirmed President Tinubu as a dispassionate leader, who posseses the ingenuity to lead Nigeria out of the current economic doldrums. 

    The former federal lawmaker, said these in a statement issued by his Media Office and made available to journalists in Ado Ekiti, the Ekiti state capital on Friday.

    The All Progressives Congress chieftain, also hailed the Group Managing Director of Nigeria National Petroleum Company Limited Group Manager Director, Mele Kyari,for its incorruptible posture, leading to the  hiring of the best experts to return the refineries to optimum functionality. 

    Faparusi added that the restreaming of the refineries has started eliciting wide positive effect as manifested in gradual slumping of the petrol price,  thereby reducing the hardship being faced by Nigerians.

    He told those he described as naysayers, who predicted that the refineries will defy every solution to stop being cynical about the progress of the nation.

    The former federal lawmaker  posited that Nigeria is currently is in the best and safe hands, with President Tinubu in the saddle of governance.

    Read Also: Tinubu’s reforms save Nigeria N930bn, drive economic recovery, says Edun

    “President Tinubu is putting midas touches to every sector of the economy making impossible possible. He started with the removal of fuel subsidy that we have started seeing the gains with the economic buoyancy in states to be able to pay the N70,000 minimum wage to workers across board.

    “The second year one was the facilitation of the Local Government Autonomy, so that all the 774 local governments can savour financial autonomy to operate and add economic vibrancy to the third tier of government.

    “The last one was the functionality of the hitherto moribund refineries that had remained comatose for decades. 

    “President Tinubu has brought era of practicability and conviction, instead of deceit offered by the opposition People’s Democratic Party for 16 years when they ran the economy aground.

    “I am sure that Nigerians would now be convinced beyond reasonable doubt that with President Tinubu in the saddle, the country is perfectly in safe hands”. 

    He said such action could thwart the federal government’s attempt to reduce the pump price and regulate the temperature of the harsh economy to alleviate the hardship in the system.

  • Obasanjo and NNPCL refineries

    Obasanjo and NNPCL refineries

    • By Simbo Olorunfemi

    That former president, Olusegun Obasanjo has an almost child-like emotional attachment to the public-owned refineries under the trust and care of the NNPCL is not in doubt. It is also not difficult to explain why that appears to be the case. He can indeed assert some level of claim/credit for the construction of two of Nigeria’s publicly owned four refineries. While the decision to construct the second and third refineries in Warri and Kaduna respectively was taken in 1974, with construction on the third set to only commence “whenever the projection of the consumption of petroleum products justifies it”, by early 1975, fuel shortages made it necessary to proceed with its construction soon after.

    The Warri Refinery, whose contract was awarded in 1975 before Obasanjo became Head of State, was completed and commissioned in 1978 while he was in office. The contract for the construction of the Kaduna Refinery was awarded in 1977 and commissioned in 1980.

    One interesting fact is that the construction of these refineries was under the direct supervision of Muhammadu Buhari who was appointed Federal Commissioner (Minister) for Petroleum and Natural Resources in March 1976 and chairman of the Nigerian National Petroleum Corporation when it was created in 1977, a position he held until 1978.

    So, it must have been heart-breaking for Obasanjo to meet the refineries in a state of much disrepair when he returned as president in 1999. Such was the state of the refineries that even with so much money expended on ‘Turn-around maintenance’ of the refineries while he was in office, there was no turn-around in fortune for the refineries that he had to put them up for sale a few weeks to the end of his administration.

    For the Port Harcourt refinery, Blue Star, a consortium of Nigerian companies – Zenon Oil, Dangote Oil, and Gas & Transnational Corp. outbid UK-based Indian steel baron, Lakshmi Mittal, who had offered $550 million. The Dangote-led Blue Star, made up of Obasanjo’s associates, paid $561 million to acquire 51% of the government-owned stake in the refinery. There were two other bidders – Oando Plc as well as Sahara Energy in conjunction with Refinee PetroPlus, but the two were disqualified in a process conducted by the BPE. Bluestar will follow up with the buy-in in Port Harcourt to, soon after, also take a 51% stake in the Kaduna Refining Company.

    In what was a strange twist of irony, it was Obasanjo’s anointed successor in office, President Umaru Yar’Adua, who, within only a few months of assumption, took a different position on the sale of the refineries, which prompted Blue Star to pull out of the deal. Obasanjo, who never hid his pain, and tried to prevail on his successor without success, cannot get over the turn of events.

    He often recoils at how Yar’Adua baulked under pressure and cancelled the sale. “The refineries are old and Dangote and some investors paid $750 million for two of the refineries. My successor came to office and reversed the sale. He even refunded the money they paid. So I went to him and asked him why he did this. He said it was because of pressure. So I wondered if the pressure by some people was more important than the interest of the whole nation,” he once recalled.

    Even though the reversal of the Obasanjo sale took place over 17 years ago, and the administrations that succeeded further moved in the opposite direction, Obasanjo has refused to accept that any approach other than the one he took will ever work. To him, the refineries did not work with him, and they can never work under any other dispensation no matter what is done, which is quite intriguing.

    Read Also: Why we had to remove fuel subsidy, by Tinubu

    Whereas Obasanjo anchored his decision to sell as pro-Nigeria and the reversal of the sale as anti-Nigeria, those who cancelled the sale obviously thought otherwise. In the first place, the sale was greeted by widespread criticism from the public, with the main accusation then being that the sale did not follow due process. Indeed, NNPC and DPR spoke up against it, just as the labour unions, especially NUPENG and PENGASSAN were up in arms against it. They claimed that “the sale of the two firms was completely lacking in transparency”, that no due diligence was carried out, and that the Port Harcourt refinery was worth about US$5 billion, roughly nine times the amount it was sold for. Indeed, the sale of the refineries to Bluestar was one of the grounds for a general strike that paralysed the Nigerian economy for four days in June 2007.

    So, while the reversal of the sale is often cited, these days, as a major setback, not everyone agrees with that. Not everyone saw the decision to sell the refineries as the right one. In his interviews with the media on the subject, Obasanjo usually anchors his argument that the refineries can never work on the conversation he said he heard with top Shell executives whom he had invited to take a stake in the refinery and manage it. Shell, he said, gave four reasons for declining his offer. According to him, the Shell executive said: “First of all, they make a major profit from upstream, not from downstream. He said they run downstream just to keep their head above water.

    “Two, our refineries were too small: 60,000 barrels 100,000 barrels and I think 120,000 barrels. He said that at that time, the average refinery was going for 250,000 barrels.

    “Three, he said our refineries were not well maintained. Four, he said that there was too much corruption around the activities of our refineries and they would not want to get involved in that.”

    But looking at these reasons said to have been given by Shell, none of them is novel or suggestive that Shell saw the refineries as beyond redemption, as Obasanjo concluded. Indeed, it is well known that the refinery business is not the most profitable and that upstream is more profitable than downstream. It is easy to understand why Shell, which is not even a player in the Nigerian downstream sector, will not be interested in running a refinery, even with corruption out of consideration. It is ironic that observations made by Shell will make such a lasting impression on Obasanjo that he will shut out any suggestion that does not endorse the impression he formed.

    It is instructive that following years of fits and starts under different administrations, with efforts at ‘turnaround maintenance’ not yielding lasting results, President Muhammadu Buhari who had worked with President Obasanjo in the past, will then take the bold step of shutting down the refineries and commissioned a complete rehabilitation of the four refineries, as different from the TAMs in 2021. At the time, the NNPCL CEO, Mele Kyari said: “I have said it over and over that we have not taken care of these refineries over the years, that we have mismanaged the turnaround maintenance work over time in the last 20+ years, these plants have degenerated to a level that today, we are not turning around but resuscitating them, which is different from TAM.”

    Apparently, many didn’t understand the difference then, even as many still don’t understand it now, thus going off tangent in their expectations of what the refineries can deliver. At the time the contract for rehabilitation was awarded, some people had also made the point that a new refinery could have been built instead of rehabilitating the old ones, but Mele Kyari explained then:

     “We have people saying why not build a new one; why will you repair an old refinery with $1.5 billion? The fact is available even by Google search, what it takes to build a refinery of this status today.” 

    “It will be difficult for the country to build a new refinery as it will take four years for it to commence production. It is around $7 billion and $12 billion to construct a refinery of this nature (Port Harcourt refinery),” Kyari argued.

    Atedo Peterside submitted then that NNPC would only “enmesh Nigeria into a deeper financial mess by throwing $1.5 billion at a problem it created,”, while Prof Pat Utomi argued that “The decision of federal government to invest $1.5 billion in the repair of Port Harcourt refinery is unwise, unreasonable and has no basis.”

    Indeed, only a few gave the NNPCL a chance with the rehabilitation of the refineries, with trust further eroded by multiple failures to deliver to its schedule. But things have turned around in the last two months with the commencement of production in the old wing of the Port Harcourt refinery, and last week’s resumption of production at the Warri refinery, with indications that the Kaduna refinery would be going on stream soon.  The club of cynics and sceptics is fast thinning out.

    Obasanjo appears unconvinced though. “I was told not too long ago that since that time, more than $2 billion have been squandered on the refineries and they still will not work. If a company like Shell tells me what they told me, I will believe them. But here we are, over $2 billion squandered, and the refineries still won’t work,” Obasanjo declared. It might be that Obasanjo is of the mind that the rehabilitation work that was done at the refineries is of the standard that was presented to him as having been done in the past, not realising that this is clearly beyond that, with experts positing that what we have now is virtually a new plant.

    NNPCL has responded appropriately with its Chief Corporate Communications Officer, Olufemi Soneye, extending an invitation to the former president for a tour of the newly completed refineries to witness first-hand the state of operations there. President Obasanjo has a reputation for being forthright and candid. One expects him to honour this invitation and share with Nigerians his impression thereafter. That is the right and honourable thing to do.

    •Olorunfemi works for a Nigerian communications consultancy and publisher of Africa Enterprise.

  • Refineries repairs: give proper account

    Refineries repairs: give proper account

    Coalition of Civil Society Organisations has called for an account of funds spent on repairs of refineries since 2007.

    The coalition said Nigerians deserve to know why the refineries remain dormant despite enormous expenditure.

    National Spokesperson, Segun Adebayo, told reporters in Abuja yesterday that the $20 billion spent must be accounted for.

    He said the decision to import over 1.6 billion litres of PMS would undermine the country’s local refining potential.

    It said this decision by Nigeria National Petroleum Company Limited would cripple the economy and deepen our hardship.

    Read Also: EFCC fires two staff over corrupt practices

    “The importation of such an enormous volume of PMS places undue pressure on Nigeria’s foreign exchange reserves. With the naira already struggling against major currencies, this decision will exacerbate depreciation of our currency.

    “A weaker naira means higher inflation, making life harder for Nigerians as goods and services become unaffordable. The added cost of importing fuel undermines our goal of achieving energy independence, while draining resources to be invested locally.

    “It is alarming imported PMS is reportedly of substandard quality, damaging vehicles and increasing maintenance costs for Nigerians. From taxi drivers to small business owners, this poor-quality fuel is wreaking havoc on livelihoods. This is unacceptable in a country with abundant crude and refining potential.

  • Nigeria @ 64: Ogoni group call for establishment of refineries/LNG plants for oil resumption

    Nigeria @ 64: Ogoni group call for establishment of refineries/LNG plants for oil resumption

    …sends a Save-Our -Soul to FG/security agents over alleged herdmen attacks in area

    Members of Ogoni Peoples Assembly (OPA), have suggested some workable measures to the Federal Government (FG), that if adopted would fast track oil resumption in Ogoniland.

    There is no gain saying that oil exploration was suspended in Ogoniland over 30 years ago following unresolved crisis between them and the International oil Company operating in the area, Shell Petroleum Development Company (SPDC).

    The issues were related to oil spill/ pollution and its consequential environmental degradation.

    The event led to the death of many persons in Ogoniland , including their Leaders, Ken Saro-Wiwa and eight others.

    The barred Shel from further operations in the area.

    However efforts by succeeding governments to resume production in the erea have continued to hit brick wall.

    The people have insisted that thwi4 messed up environment must be cleaned up and that exploration in the area must be on their own terms.

    The OPA, an elitists group in a statement to mark Nigeria at 64 yesterday listed some measures that could end the lingering disagreements and pave way for oil resumption activities in the communities.

    In the test issued in Port Harcourt, the State capital, l yesterday, they noted that building of refinery facility in each of the six oil fields in the area, replication of Bonny Liquefied Natural Gas plant, establishment of Environment University in Ogoniland, among others would pacify the people to allow smooth and peaceful operations in the place.

    Read Also: Security forces uncover 66 illegal crude oil refineries

    The document was jiontly signed by the group Leader Rev. Probel Williams and the Secretary, Dr. Evidence Enoch.

    The people noted that Ogoni people are free minded and are open for meaningful discussion with the government.

    They condmned the situation where efforts are being made to re-enter the area through the backdoor, describing it as suspect and infantile.

    They said, “The clandestine and nocturnal approach to oil resumption is both suspect and infantile. What happens to conventional dislogue, negotiation, lobbying, round-table discussion, compensation, reconciliation, reintegration and restoration of the people, land and glory of Ogoni?” they queried.

    “Oil operability models and global best practices do exist as templates to adumbrate, modify, and adopt as fit-for-purpose, and this again after consideration of exoneration, and the demands of the Ogoni people as enshrined in the Ogoni Bill of Rights(OBR).

    “Consultations, engagements, negotiation, recounciliation, reintegration, and rehablitation of the lands and people of Ogoni are paramount.

    “Ogoni is indeed a gas-field with associated oll. What about a re-entry plan predicated on prior establishment of a world class Liquefied Natural Gas (LNG), Plant in Ogoni, University of Environment, and refinery in each of the six oilfields of Ogoni as sorry/ compensation gifts, for the years of neglect and devastation.

    “Whereas Ogoni is open to sincere conversations, the unlikely attempt at forceful usurpation and occupation will only deepen the already deep gulf of genocide and extermination of a people with a messianic covenant, an absolute impossibility”.

    Also the grpup decried the alleged invasion, attacks/killing of residents of the area by suspected Herdsmen rampaging the communities forests.

    The people in a Save-Our-Soul (SOS), document to the FG and Security agencies appealed for quick intervention to stame the tide as soon as possible, to avoid their resprting to self defence.

    “The recent attacks on Ogoni special areas of Agbeta in Eleme Local Government Area, Tai and Khana Council areas by suspected herdsmen are just too many. We therefore send a Save-our-soul(SOS), to the security agencies to rise to the occasion and come to our aid.

    “Ogoni, bleeds yet again, and cries for the right to live and let live. May we not be forced to seek self-help.”

    The people noted that Ogoni people are peaceful, law abiding and resolute. They urged the attackers to learn from history and retrace their steps from the further invasion, attacks on the people.

  • Refineries face decline in profitability on global slowdown 

    Refineries face decline in profitability on global slowdown 

    Oil refiners in Asia, Europe and the United States are facing a drop in profitability to multi-year lows, marking a downturn for an industry that had enjoyed surging returns post-pandemic and underlining the extent of the current slowdown in global demand.

    The weakness is a further sign of soft consumer and industrial demand, especially in China, because of slowing economic growth and rising penetration of electric vehicles. New refineries coming on stream in Africa, the Middle East and Asia have added to the downward pressure.

    According to Reuters’ report, refiners such as TotalEnergies and trading firms such as Glencore saw bumper profits in 2022 and 2023 as they cashed in on supply shortages caused by Russia’s invasion of Ukraine, disruptions to Red Sea navigation by Houthi militants, and a big recovery in demand following the COVID-19 pandemic.

     “It’s certainly looking like the refining supercycle that we’ve experienced over the past few years may now be coming to an end, with supply from newly inaugurated refineries finally catching up with slower-growing fuel demand,” Commodity Context analyst Rory Johnston said.

    Singapore refining profits, a bellwether for Asia, fell to $1.63 a barrel on Sept. 17, a seasonal low since the same period in 2020. Asia’s diesel margins crashed to a three-year low on the same day, according to LSEG data.

    The weak Chinese economy is a key reason. Industrial output growth in the world’s top oil importer fell to a five-month low in August while oil refinery output fell for a fifth month as weak fuel demand and soft export margins curbed production.

    In top consumer the United States, where demand has also lagged expectations, the 3-2-1 crack spread , a key measure of overall profitability, slipped below $15 a barrel in late August for the first time since early 2021. The 3-2-1 spread approximates U.S. refiners typical yield of two barrels of gasoline and one of diesel from every three barrels of oil they process.

    Gulf Coast gasoline margins, excluding renewable fuel blending obligations, averaged $4.65 a barrel as of Sept. 13, down from $15.78 a year ago and diesel margins were just over $11, versus over $40 last year, according to data from Oil Price Information Service.

    Oversupply in the global diesel market due to soft demand is one of the main reasons for margin weakness.

    The International Energy Agency projects diesel and gasoil demand this year to average 28.3 million barrels per day (bpd), contracting by 0.9% from 2023, while demand for gasoline, jet fuel, LPG and fuel oil grows over the same period.

    At the end of August, European diesel margins fell to about $13 a barrel, their lowest since December 2021, according to LSEG data. They averaged $16.6 a barrel in August, less than half the $38.3 they averaged in August 2023.

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    The immediate outlook remains weak, although seasonal demand could provide support.

    Energy Aspects analyst Raul Caldaria said refining profits were expected to remain low for the rest of the year, with some upside from higher winter demand for diesel in Europe.

    Gasoline profit margins are also under pressure in Europe, despite more robust demand. They averaged $12.1 a barrel in August, crashing by 61% from August 2023 levels of $31, according to LSEG data.

    A spokesperson for Eni (ENI.MI), opens new tab said the Italian refiner was “implementing measures to mitigate the reduction of refining margins”, but declined to elaborate on those measures.

    A spokesperson for Spanish refiner Cepsa said they were monitoring their profit margins but had not made a decision on slowing their processing.

    New Refineries

    The start up of a number of new refineries has compounded the pressure on margins, with older refineries, particularly in Europe, feeling the pain.

    Earlier this month, Petroineos confirmed it would close its Grangemouth refinery in Scotland, with shutdowns expected in Germany as well.

    This year, new capacity ramping up includes Nigeria’s 650,000 bpd Dangote plant, Mexico’s 340,000 bpd Dos Bocas, Kuwait’s 615,000 bpd Al Zour and Oman’s 230,000 bpd Duqm.

    “Globally there is clearly too much refining capacity currently relative to demand levels, with new capacity just making things worse,” said Vortexa’s chief economist David Wech.

    Bank of America analysts on Sept. 13 said they expected global refining margins to continue their slump, after sliding 25% quarter-to-date and 50% on a spot basis, and as new refining capacity rises 1.5 million bpd year-on-year.

  • FG, oil producers agree on crude supply to local refineries

    FG, oil producers agree on crude supply to local refineries

    The Federal Government and crude oil producers in Nigeria have agreed to work toward a sustainable supply of crude oil to local refineries under a market-determined pricing system. 

    The aim is to ensure that while the operators do business optimally, the refineries are not starved of feedstock.

    The producers under the umbrella of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI), at a meeting called by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), agreed to concede to a framework that would be mutually beneficial with the aim of ensuring that local refineries are not strangulated due to off-the-curve prices.

    The focus of the meeting at the instance of the Commission Chief Executive, Engr. Gbenga Komolafe was on the status review of the Framework for Seamless Operationalisation of Domestic Crude Oil Supply Obligation Template.

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    This was contained in a statement by the commission’s Public Affairs Unit in Abuja. 

    The statement noted that it was part of efforts to effectively implement key sections of the Petroleum Industry Act (PIA) 2021, especially the issue of pricing and crude supply to the domestic refineries.

    Komolafe said President Bola Ahmed Tinubu was fully committed to providing a level playing ground for producers and refiners to do business in the industry. He expressed the need for a rule of engagement to ensure that the pricing model from the oil producers does not hinder the domestic refineries. He directed producers and refiners to provide the NUPRC with cargo price quotes on crude supply and delivery for effective monitoring and regulation of transactions among parties. “We need to have the price quotes monthly,” he directed.

    The CCE pointed out a convergence between the Domestic Crude Oil Supply Obligation (DCOSO) and the nation’s energy security, indicating that his team is re-engineering its regulatory processes to address the challenges. “We allow all our processes to be transparent. While the Federal Government targets the implementation of the regulation, all parties must submit to the rules of engagement as a guide for operation,” he said. 

    The regulator, he said, is committed to driving the willing buyer/willing seller provision. “We have to discuss pricing, especially as parties have committed to respecting their domestic crude oil obligation. As the regulator, we don’t want the upstream sector to be operated sub-optimally through cost under-recovery. So, the regulator is very alive to that. In crude pricing we will never allow price strangulation to disincentivise our domestic refining capacity optimisation. The regulator does not support cost under-recovery in the upstream sector, and we will continue to work to ensure that crude supply profiteering as a negative factor that can strangulate our domestic refining capacity optimisation is disallowed.” 

    The CCE stated that “NUPRC is committed to attracting the needed investments to boost upstream development and optimisation of our hydrocarbon resources just as we want sustainability of domestic energy supply in the midstream and downstream sector.”

  • Refineries: Waiting for Godot

    Refineries: Waiting for Godot

    If frontline tycoon Aliko Dangote had under-gauged how heavily Nigeria depends on his private refinery that came on stream early this year, he got a hint from the panic over a recent  minor fire incident at the facility.

    The fire incident occurred penultimate Wednesday at the effluent treatment plant of the Dangote Refinery and Petrochemicals located at the Lekki free trade zone in Lagos, sending chilly waves into Nigerians who mostly pin their hope on the facility delivering refined petrol to the local market to relieve the country’s heavy dependence on imported petrol that does not come cheap in view of foreign exchange dynamics, among other cost-push factors. The 650,000 barrels-per-day private refinery commenced production of diesel and aviation fuel in January, and was expected to add petrol to its product line by May.

    The firm confirmed penultimate Wednesday’s fire incident as minor and nothing to worry much about. Reports said emergency services responded swiftly to contain the incident. The cause of the fire was not immediately known and investigations were launched to ascertain the extent of damage and what started the fire. “We have swiftly contained a minor fire incident at our effluent treatment plant (ETP) today, Wednesday, 26th of June. There is no cause for alarm as the refinery is operating and there is no recorded injury or bodily harm to our staff on duty,” the Group Head, Corporate Communications, Anthony Chiejina said in a statement. Effluent treatment is a type of wastewater treatment method used in purifying industrial wastewater so to ensure release of safe water to the environment, and thereby preserve environment from harmful effects caused by effluents.

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    The panic over the Dangote refinery fire was against the backdrop of serial failed promises by government that public-owned refineries that are being refurbished were about resuming production. As far back as August 2023, Petroleum Resources Minister of State (Oil) Heineken Lokpobiri was reported saying the Port Harcourt refinery would roll out by December 2023. His promise during an inspection tour of the facility was re-echoed by Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Mele Kyari while meeting with House of Representatives Speaker Tajudeen Abbas in November 2023. But the promise never materialised and NNPCL has returned a couple of times to set new dates that also fell through. Mid-March, 2024, Kyari promised during an interactive session with the Senate that Port Harcourt would take off within two weeks, which never came. In May, an NNPCL report set September as the new date. Well, the thing about phony promises is that they always have an expiry date.

    Godot is the phantom figure in Samuel Beckett’s two-act absurdist classic who never came. We’ll sooner than later know how much of Godot the refineries are.