The Nation Newspaper

Tag: refinery

  • Dangote, Nasarawa sign MoU on Sugar refinery

    Dangote, Nasarawa sign MoU on Sugar refinery

    Nigeria’s dream of becoming self-sufficient in sugar production is coming to fruition, with the signing of a Memorandum of Understanding (MoU), between Dangote Sugar Group, and the Nasarawa state Government

    The project is expected to gulp $700m .

    The signing ceremony of the deed of acquisition, lease and development agreement, took place at the National Sugar Development Council, Sugar House, Abuja, yesterday.

    President/CE, Dangote Group, Alhaji Aliko Dangote, said the integrated sugar complex to be located in Tunga, Awe Local Government Area of Nasarawa State, comprises 60,000ha of sugar plantation and two sugar factories, with capacity to produce 430,000tpa of refined white sugar, representing about 30 per cent of the country’s consumption and would be the largest plant in Nigeria.

    The sugar project would also provide 30,000 jobs for the teaming youths in Nasarawa State.

    Dangote said Phase II of the project, when extended to cover 100,000ha, will make the sugar plant, the largest in Africa.

    Dangote Group has already committed N250million for community development of Tunga in line with its corporate social responsibility initiative to improve the people’s well-being.

    He said the project is to further align Dangote Group with the present government’s policy of diversifying the economy.

  • Port Harcourt Refinery: A concession put on hold

    Port Harcourt Refinery: A concession put on hold

    The Federal Government’s plan to concession its refineries may not materialise soon. Reason: the Senate is investigating the proposed rehabilitation of the Port Harcourt Refinery and Petrochemical Company by a multinational oil firm. But, according to industry experts, an urgent resolution of the disagreement will be more beneficial to the country, reports Assistant Editor EMEKA UGWUANYI.

    The executive has been pitted against the legislature over the planned repair, maintenance and concession of the Port Harcourt Refinery and Petrochemical Company.

    Nigerian Agip Oil Company – the local subsidiary of Italian oil giant Eni, in partnership with Oando Plc, a Nigerian oil and gas conglomerate, were being considered for the job by the Federal Government before the National Assembly suspended the process.

    The Ministry of Petroleum Resources, which is driving the process for the government, believes that giving the facility to a private sector operator would serve Nigeria’s interest better.

    It was considering the technicalities and huge resources required to rehabilitate and manage a refinery but the Senate feels otherwise.

    To the lawmakers, the ministry erred by taking what they called a unilateral and unlawful action without recourse to transparency and due process. They accused the ministry of hiring a contractor without a wide consultation or conducting an open bid.

    According to them, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, should have engaged stakeholders and members of the public on the planned rehabilitation and concession of the refinery.

    They directed the executive to pull the brake on the rehabilitation plan pending the conclusion of investigation into the process that led to the award of the contract to Agip and Oando.

    Analysts argue that the executive may have acted in good faith following decades of government’s fruitless efforts to fix the moribund refineries, singing billions of Naira to carry out routine Turnaround Maintenances (TAMs).

    But the legislature said the executive, through the ministry and its Department of Petroleum Resources (DPR) agency, should not have been involved in an arrangement that lacked transparency in a country guided by rules.

    The Head, Energy Research, Ecobank Group, Mr. Dolapo Oni, threw his weight behind the executive, describing the decision to engage private sector-driven firms to revamp the refineries as excellent. He said the refineries had suffered neglect for a long time.

    Oni said: “Private sector help is appreciated in revamping the refineries. The refineries have suffered poor maintenance and needed to be restored to their true state.

    “There are parts of the plants that need to be changed over the years, but because the refineries are managed by the government, there were no funds to put them in their proper shape.”

    He said Dr. Kachikwu has been globe-trotting in search of investors with the requisite technical and financial muscle to bring the refineries back on track.

    “So, when the minister found Agip agreeing to his proposal to take over the Port Harcourt refinery, he quickly handed it over to the firm,” he rationalised.

    Reacting to the Senate’s directive that all processes leading to the rehabilitation and concession of the refinery should be put on hold,  Oni said the lawmakers did no wrong for demanding transparent process.

    Oni said: “We don’t have the full details of the transaction. The minister didn’t explain whether the Agip/Oando partnership will transfer ownership of the refinery to the government at some point, or whether the partnership will seek repayment of the rehabilitation and management from the government. Making the details of the contract public is important.

    “Don’t also forget that the same Agip promised to build a brand new refinery in the Niger Delta. Will Agip hands off its involvement in the Port Harcourt refinery on completion of construction of the new one or will it manage the two refineries? These knotty areas need to be explained so that Nigerians and other interested investors will know.”

    Oni, however, said the Senate should have invited Kachikwu for proper briefing before stopping the contract, noting that such unilateral decision by the Senate does not speak well of the country to investors.

    “The Senate should have called for proper briefing with the minister before going public to stop the deal. The hallowed chamber’s action signals to the investors that we are not together as a people,” he said.

    The Ecobank Group research head agreed that the ministry needed to conduct a proper concession process and that the Senate must urgently notify the public what they found in the ministry and lift the suspension so that work will continue on the refinery.

    He urged the two arms of government to smoothen the rough edges because the refineries must work to end the huge foreign exchange that go into the importation of petroleum products.

    Last week, the Senate asked the Federal Government through Kachikwu to suspend all processes for the concession of the Port Harcourt refinery to Agip and Oando Plc. The suspension order was sequel to a motion moved by Senator Sabo Mohammed at the plenary.

    In the motion entitled: “Non-transparent transaction relating to the planned concession of the Port Harcourt Refinery to Agip and Oando by the Ministry,” the Senate expressed concern on the “non-transparent transactions” of the planned concession.

    In the motion, Mohammed said: “The Senate is aware that the Federal Government recently entered into an agreement with Nigerian Agip Oil Company, a subsidiary of Eni, an Italian oil giant, to construct a $15billion refinery in the Niger Delta region.

    “It is a deal that also includes investment by Agip in a power plant with the Italian company assisting Nigeria in the repairs of the Port Harcourt refinery.”

    “The Senate notes that the minister stated that the agreement was part of a broader Federal Government plan to increase capacity for local production and consumption of petroleum products, with the aim of ending fuel importation in Nigeria by 2019.

    “It also notes that while the resolve by the Federal Government to increase local refining capacity is laudable and should be applauded by all Nigerians, the observance of corporate governance principles and the country’s extant laws must be followed to the letter.”

    Senate President Bukola Saraki has named Senator Abubakar Kyari to head a seven-man ad hoc committee to investigate the transaction and the processes applied to select Agip/Oando for the deal.

    The Senate also mandated the committee to probe the cost and timeframe of the concession.

    The upper chamber, which suspended the transaction, stated that the planned concession of the refinery “without recourse to due process is illegal and a clear attempt at ridiculing Nigerians, and will definitely create a big hole that will be hard to fill in the anti-corruption crusade of the present administration.”

    The Senate said the usual practice in such transactions was to select partners through open and competitive bids. Such steps, it added, will prepare the business for sale, market the business, select the buyers and close the transaction.

    The Senate also said it was aware that the major stakeholders such as the Bureau of Public Enterprises (BPE), a body statutorily empowered by law to conduct such an exercise and labour unions, were not consulted on the deal that has been scheduled for signing next month.

    Besides, the Senate expressed concerns that since Agip has no technical record or history in the Port Harcourt refinery that was built by a Japanese firm, one would have expected the concerned authority to look at the Warri refinery that was built by Agip where they have technical record.

    Mohammed had stated that the Senate was saddened that on assumption of office as the Group Managing Director (GMD) of the Nigeria National Petroleum Corporation (NNPC), Kachukwu assured that the refineries would be working at 90 per cent installed capacity by the end of 2015.

    This, according to the minister, would drastically reduce fuel importation and subsidy payments. But Mohammed, stated that up till now, the refineries have yet to be fixed and cannot produce at 50 per cent capacity, let alone 90 per cent.

    To the lawmaker, such concession would have been wonderful if it would end importation of refined products by 2020.

    “Is it Agip or Oando Plc that is taking over the Port Harcourt refinery? Was there observance of the privatisation law as regards due diligence and selection from preferred bidders before ceding Port Harcourt refinery to Agip/Oando?” he asked, insisting that the minister must explain some issues in the transaction.

    Senator Dino Melaye also accused the executive of taking Nigerians for granted. Citing the concession of power supply to electricity generation and distribution companies and the concession of Ajaukuta and Delta steel companies, which have resulted to total decay of the industries, he said these may be replicated in the Port Harcourt refinery.

    The Chief Strategy and Corporate Services Officer of Oando Plc, Ainoije ‘Alex’ Irune, explained his company’s involvement in the deal.

    According to him, Oando bought into the project because of its belief in government’s aspiration to make Nigeria self-sufficient in fuel production.

    Irune said: “We wish to explicitly state that Oando shares the vision of the Nigerian Government to become a petroleum product self-sufficient country in the short to medium term and ultimately be a net exporter of such products.

    “Accordingly, pursuant to the Memorandum of Understanding (MOU) reached with the Federal Government and NAOC/ENI. Oando will partner with NAOC/ ENI in the proposed rehabilitation of the Port Harcourt Refinery (PHRC).

    “This will be based on a Repair, Operate and Maintain (ROM) agreement, which will see PHRC’s capacity grow from its current 30 per cent to 100 per cent, its name plate capacity of 210,000 barrels per day.”

    He said that in line with the concerted efforts of the Ministry and the NNPC to aggressively drive private sector-led refineries’ rehabilitation and expansion programmes, Oando, as local partners to NAOC/ENI, will support the rehabilitation of PHRC’s on activities.

    According to him, a final agreement will be due by end of July after ongoing active negotiations.

    But, the outcome of the Senate’s probe panel will determine the agreement.

    Kachikwu, at the 172nd Organisation of Petroleum Exporting Countries (OPEC) meeting stated in Vienna, Austria, that the refineries concession cannot be done in an open bidding process because “it’s a highly technical area.”

    Also on May 9 after meeting with Acting President Yemi Osinbajo and Agip officials at the State House, , Kachikwu announced that the Nigerian Agip Oil Company had committed to repair the Port Harcourt refinery, as part of a $15 billion investment that includes building a 150,000 barrels per day refinery and a power plant in the country.

    Speaking on the floor of the Nigeria Stock Exchange on May 11, Oando’s Chief Executive Officer Wale Tinubu said his company had received approval of the Federal Government to partner with Agip on the refinery deal.

    Kachikwu said the entire refinery transaction was aimed at strengthening Nigeria’s drive to end fuel importation by 2019.

    He vowed to resign should Nigeria fail to achieve self-sufficiency in crude oil refining by 2019 with full implementation of government’s policies on the matter.

    In an interview with the British Broadcasting Corporation (BBC), Kachikwu restated Nigeria’s target to attain self-sufficiency in terms of crude oil refining by 2019, adding that the country should be more concerned about processing crude oil rather than shipping it out for processing elsewhere and importing refined products.

     

    Promises, woes of the refineries

    The NNPC Group Managing Director, Dr. Maikanti Baru, had last month stated that the corporation was shopping for $16 billion to grow its upstream and refining operations and increase the nation’s oil refining from the current 445,000 barrels per day (bpd) to 700,000 bpd within the next few years.

    He said: “With respect to our refineries, our plan is to rehabilitate and revamp our existing four refineries. We invite you investors to participate in this process. On successful rehabilitation and revamp, our plan is to upgrade the combined nameplate capacity from 445,000 barrels per day to 700,000 barrels a day within the next few years. We would require investments of between $5billion and $6billion.”

    Baru said the NNPC was mindful of the need to construct new refineries and hence, it will encourage investors in this area.

    According to him, the big picture is to transit from a net crude oil exporter to a net petroleum product exporter as more value and opportunities abound in the latter.

    Meanwhile, General Electric (GE) has pledged to assist the Federal Government in the revitalisation of the refineries. The President and Chief Executive Officer of GE’s Grid Solutions/Energy Connections, Africa, Dr. Lazarus Angbazo, told reporters that the company was waiting for the NNPC on the areas needing intervention.

    Angbazo confirmed that the resuscitation of the refineries would enable Nigeria become self-sufficient in petroleum production, adding that the company would not hesitate in helping the country to meet the 2019 target to halt importation of petroleum products.

    According to the Central Bank of Nigeria (CBN’s) report, the Federal Government spent $6.09 billion on petroleum imports in the first six months of last year despite the scarce foreign exchange and pressure on foreign exchange reserves.

    Even now, the government spends substantial amount on fuel importation and subsidy, the apex bank said.

    Between 2000 and 2017, the government spent over N10 trillion on fuel subsidies. According to the Chairman, Senate Committee on Petroleum Resources (Downstream), Senator Marafa Kabir Garba, the NNPC alone collected over N5 trillion on subsidies from 2006 to 2015.

    The consensus of experts and industry stakeholders is that the only sustainable way to make the refineries work is to completely hand them over to private sector operators and not fronts of government officials.

  • Senate halts Eni’s Port Harcourt refinery deal

    The Senate voted yesterday to halt a concession agreement with the local unit of Italian oil firm Eni to repair, operate and maintain Port Harcourt refinery, saying the deal lacked transparency.

    Eni was in talks to work with Nigerian intergrated energy company, Oando, on the deal, part of an effort to lift refining levels in the Organisation of Petroleum Exporting Countries (OPEC) member state that depends on imported oil products.

    Members of the upper house of parliament voted to back the motion brought by Senator Sabo Mohammed. Senate will now set up an ad hoc committee to investigate the concession award.

    Eni officials could not immediately be reached for comment.

  • Time out!

    •At last, FG withdraws would-be refinery investors’ licences 10 years after

    With nothing to show more than 10 years after handing out the first batch of refinery licences to would-be investors, the Federal Government may have settled on wielding the big stick. At the sidelines of the just-concluded Offshore Technology Conference (OTC) in Texas, United States, Minister of State for Petroleum Resources, Ibe Kachikwu, stated that he had directed the Department of Petroleum Resources (DPR) to ensure the withdrawal of the expired licences immediately. In all, some 25 out of a total of 32 licences said to have exceeded the two-year grace given them by the agency to commence the production of petroleum products are said to be affected.

    While this latest twist was expected, playing the Pontius Pilate as the Federal Government is wont to do in this instance is, quite frankly, opportunistic. To start with, if we understood the business of refining crude petroleum to be a high-tech, highly capital intensive affair, the all-comers affair under which entities that would ordinarily not have emerged as serious contenders in the fuel marketing chain were awarded licences to build refineries, would pass for unspeakable.

    While that represents one side of the matter, the other side is that the Federal Government not only went to sleep after farming out the licences, it also failed to take into consideration the concerns of the hitherto knowledgeable players in the industry – a factor largely blamed for their decision to stay clear.

    Today, we must admit that the terrains have changed considerably from what it was some 10 years ago. One indication is that the issue of cost recovery and the debate on subsidy that it spawned – a major pillar of liberalisation – is certainly far less acrimonious than it was 10 years ago. For, as painful as the last fuel price hike was, a consensus that somewhat emerged was that the old regime of subsidy and its associated corruption is neither sustainable nor desirable any longer.

    That Dangote refinery is pushing aggressively towards the realisation of its 650,000 barrels per day (bpd) refinery has since shifted the debate from whether it is doable to one of how to get it done. This is where the failure to turn the sod would appear to suggest that the licencees have a far lot more to learn about the business than they are willing to admit. We therefore think the Federal Government is right to seek to close the chapter. Part of that would of course mean pushing more aggressively to bring serious investors on board.

    That is why we welcome the announcement by Kachikwu of the decision by Agip to build a 150,000 bpd refinery in Port Harcourt. That, were it to happen, would be a major boost not just to the current efforts towards local sufficiency in refined products but also in the area of deepening the government’s liberalisation efforts. Considering that the decision is strictly a business one, we would have expected the announcement to have come from Agip rather than the minister. All the same, Nigerians cannot wait to see it happen.

    Even at that, nothing in the signal by Agip makes the process a done deal. Indeed, if there is lesson that the matter of botched licences has taught, it is that nothing can be taken for granted.  Government’s responsibility is to continually engage the would-be investors until the final investment decisions are made. It is about time Nigeria began to harness its vast oil reserves and endowment in natural harbors to become a global leader in refining.

  • Oando to take over Port Harcourt Refinery

    Oando to take over Port Harcourt Refinery

    •Mulls N40b capital raising

    The Federal Government has entered into a Memorandum of Understanding (MoU) with Nigeria’s largest indigenous energy group, Oando Plc to manage the Port Harcourt Refinery under a repair, operate and mainteain (ROM) arrangement.

    Chief executive officer, Oando Plc, Mr. Wale Tinubu at a presentation on the underlying facts of the group’s operations at the Nigerian Stock Exchange (NSE) yesterday in Lagos, said the group has received approval of the government to oversee the Port Harcourt Refinery.

    “We also got approval from the President to repair, operate and maintain the Port-Harcourt refinery together with our partner Agip. We plan to increase the refinery capacity from 30 per cent to a 100 per cent, subsequently to 120 per cent,” Tinubu said.

    He said the parties to the transaction were finalising the details of the arrangement that will help to enhance the efficiency of refinery.

    He noted that the group has deleveraged its balance sheet through the divestment of its upstream services company, Oando Energy Services and embarked on the expansion of its retail and gas footprint through a strategic partnership with Helios Investment Partners and Vitol Group to recapitalise its downstream business for $210 million and the $115.8 equity buy-in of its Gas and Power business by Helios Investment Partners.

    He said the company was considering raising some N40 billion in new capital.

    Tinubu said the first quarter earnings of the group underscore its proactive decision to focus on its dollar denominated export businesses.

    “Our resilience is evident in our capacity to grow via a diversified model, and as we continue to chart our deliberate path in this challenging business environment, we look forward to better performance in the quarters to come,” Tinubu said.

    Oando doubled its turnover in the first quarter of this year as the indigenous energy group continued to reap from its strategic focus on assets optimisation and deleverage.

    Key extracts of the three-month report for the period ended March 31, 2017  showed that Oando Group grew its top-line by 116 per cent to N138.27 billion in first quarter 2017 compared with N63.9 billion recorded in comparable period of 2016. Gross profit also increased by 53 per cent from N8.7 billion in first quarter 2016 to N13.4 billion in first quarter 2017. The company recovered from a pre-tax loss of N461 million in first quarter 2016 with a pre-tax profit of N494 million in 2017. The company also reduced its net indebtedness by 29 per cent from N316.6 billion in first quarter 2016 to N225.9 billion in first quarter 2017.

  • NNPC refinery loses N2b to illegal tappers

    NNPC refinery loses N2b to illegal tappers

    The Kaduna Refining and Petrochemical Company Limited (KRPC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), loses an average of N2.2 billion yearly to illegal tapping of its raw water pipeline that runs fromKaduna River.

    The water generates power for the running of the refinery, serves as coolants for its equipment and is also deployed to combating fire outbreaks.

    Sequel to the series of tapping, the refinery now spends more on diesel and other material inputs in the maintenance of its generators and other equipment.

    KRPC Managing Director, Malam Idi Mukhtar who spoke in Kaduna, said the consumption of raw water from the tapped pipes by settlers who encroach KRPC premises was an unnecessary additional burden to the refinery industrial requirements, which must be resolved urgently by relevant state government agencies.

    Other form of losses to this practice is that it slows down the build-up rate of water in the reserve tanks which endangers the refinery. This is because the plant is expected to maintain a minimum level of water requirement that is considered safe for operations, the he added.

  • Earthquake along Ecuador’s coast kills two, halts refinery

    A 5.8-magnitude earthquake shook Ecuador’s Pacific coast early on Monday, killing at least two people, injuring 15 others and halting production at the Esmeraldas oil refinery, officials said.

    The country’s geological institute recorded the quake off the coast of Atacames in Esmeraldas province, northwest of Quito, the capital.

    The quake was followed by 15 lesser-magnitude aftershocks. President Rafael Correa was meeting with local officials in the area, which earlier this year was devastated by a 7.8-magnitude quake that killed about 670 people, displaced thousands and caused millions of dollars in damage.

    “We regret that a 75-year-old woman suffered a heart attack because of the quake,” National Risk Management Secretary Susana Duenas told local

    radio.

    There were no immediate details on the second person killed.

    The Esmeraldas refinery, which has a 110,000-barrel-per-day capacity, was halted as a precaution, Pedro Merizalde, head of state oil

    company Petroecuador, told media.

    Merizalde said refinery infrastructure would be checked over and that the stoppage would last about two days.

    Authorities said three hotels in the area, a popular tourist destination, were destroyed, and other buildings sustained substantial damage.

    (Rueters/NAN)

  • 12,000bpd refinery to start operation in 2018

    12,000bpd refinery to start operation in 2018

    The Group President, Azikel Group, Dr. Eruani Azibapu has signed agreement for the construction of  12,000 barrel per day (bpd) Azikel Refinery with Ventech Engineering LLC in Houston Texas.

    In a  statement yesterday, he said the project will commence operation in 2018, adding that he signed on behalf of Azikel Petroleum Nig Ltd, alongside the Director of Investment and Strategy, Mr Richard Howarth, the Executive Director Operations Mr Presley Asemota.

    Azikel Refinery is among the 22 private refineries licensed by President Mohammad Buhari in last year with the goal of creating value to Nigerian crude, self-sufficiency in refined products and employment generation.

    The refinery is situated adjacent the Gbarain-Ubi Gas Gathering Facility in Obunagha-Gbarain, Bayelsa State.

    He explained that the proximity of the refinery to the feed stock from Shell has given it a very clear advantage to start early to meet the planned 2018 commencement of operations date.

    He noted that Ventech Enginering LLC, is the world leader in modular refinery  construction, and has manufactured several refineries currently in operation in different parts of the world.

    He said:  “The funding of the refinery has been secured from Exim Bank, Export Credit Agencies and EPC Project Finance funding.

    ”Azikel  Petroleum upon the award of the License to Establish(LTE) in 2015, has demonstrated a strong zeal and focus in the completion of the refinery. Among the 22 licenses during the period, Azikel Refinery has moved from the first stage to the second stage licensing of Approval to Construct(ATC). Out of the 22 awarded licenses only four private refinery licenses in Nigeria have been able to secure the second license.”

  • Group hails IPMAN’s refinery plan

    The South East Renaissance Group has praised the plan by members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) to build new refineries, describing it as a visionary step towards ending the perennial scarcity of petroleum products in the country.

    President of the group and former Commissioner for Information and Strategy in Imo State, Nze Elvis Agukwe, assured that the new leadership of IPMAN under Chief Lawson Obasi will surely stabilize the distribution of products and end scarcity.

    Agukwe who regretted that endless crisis prevented IPMAN from playing its expected role, expressed confidence that the new leadership under Chief Obasi will take charge of the situation.

    According to him, “with Chief Lawson Obasi as the new IPMAN President, the much needed stability in the downstream sector is now here and Nigerians will no longer groan under any form of fuel scarcity”.

    He also expressed optimism that the plan by IPMAN to build refineries will go a long way to stop the import of the products, thereby saving the nation the much needed foreign exchange.

    “This is a master-stroke of walking the talk. I am not surprised at all because Chief Lawson Obasi is not only a key player in that sector but he commands the respect of his members. His presidency of IPMAN will surely benefit the nation”, Agukwe said.

    He further urged the Federal Government, especially the Ministry of Petroleum Resources and NNPC, to work in concert with IPMAN to realize its dreams for Nigeria.

    “The Petroleum Ministry and NNPC should pay more attention to the needs of IPMAN rather than the undue favour it grants the oil majors majority of whom are not Nigerians”, he stated.

    The former commissioner noted that IPMAN was employing millions of Nigerians and contributing to the growth of the economy and hence should be supported through favourable government’s policies.

    Agukwe described the new IPMAN President, Chief Lawson Obasi as a man of ideas with proven leadership qualities who will assist the government achieve its goals to stabilize the oil sector.

    “For us as the South East Renaissance Group, the emergence of Chief Lawson Obasi as IPMAN President could not have come at a better time. With him in the saddle, the era of long queues in petrol stations will be over. We congratulate him and wish IPMAN well for this wise choice”, he submitted.

  • Hong Kong firm to build 200,000 barrels refinery in Nigeria

    A Hong kong based firm,  Blooming Faith Petroleum Ltd, is partnering the Federal Government to build  and operate a 200,000 barrels per day ( bpd) capacity in Nigeria.

    The company, a subsidiary of Blooming Faith Global Holdings, plans to build the refinery in Akwa-Ibom state.

    Its chairman, Dr. Robert Yeung during his visit to Nigeria, said  the firm was planning to build the refinery in order to help Nigeria reduce the importation of petroleum products.

    He said:’’ Two major reaons informed the decision of the firm ro build a refniery in Nigeria. First, is the need to fill a vacuum created by the failure of the four government-owned refneries to perform to optimal capacity in the country. Secondly, is the realisation that Nigeria is an investment destination, which must be explored to the fullest.’’

    He said his company is not interested in exporting fuel, but to produce it for the domestic market, adding that discussions are on-going with the Nigerian National Petroleum Corporation(NNPC) and the Departmnt of Petroleum Resources(DPRP.

    Also, the firm’s Director in charge of International Operations, Mr. John Erigwe, said   the company has the financial capability and technical expertise to see the project through.

    According to him, Blooming  is interested in investing in Nigeria’s economy, stressing that this is main reason why the firm is planning to dicuss with the Honourable Minister of Ststae for Petroleum resources Dr. Ibe Kachikwu, how to acheive this goal.

    He said the refinery, if approved by the Federal Government, would follow Dangore Petrochemcial Refinery in terms of size and output.

    .Still on the issue, Chief Executive officer of ‘D’Alphaxristi Ltd and consultants to the firm, said  it is pertinent that the Government eases the pathway to investments as a way of encouraging investors to commit funds to projects.

    “This is one of those investments that will have direct impact on the ordinary Nigerian people and the government should give such project immense priority. Investors must be encouraged with incentives and access to government support when required.

    It would be recalled that Nigeria’s Minister of State for Petroleum, Dr. Kachikwu was in China recently on a Road Show that aimed at creating awareness for the nation’s economy.

    The show is expected to provide  $100 billion worth of investments for Nigeian oil and gas industry.