Waltersmith modular refinery coming on stream attracts praises to NCDMB for improving domestic oil refining
The refinery has so far supplied a total of 600 million litres of petroleum products to the Nigerian market since its commissioning in 2020.
Before Nigeria can get all its state-run refineries functioning, modular versions will be the ones to hold the fort and help get crude oil refining back to speed for the benefit of households and businesses.
It is the Federal Government of Nigeria’s agenda to improve domestic refining capacity, so it is no wonder that the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, has commended Waltersmith Group and the Nigerian Content Development and Monitoring Board (NCDMB) for supporting the initiative.
The minister during a facility tour of Waltersmith Petroman Oil Limited on Tuesday, 21 November in Ibigwe, Ohaji-Egbema Local Government Area of Imo State, revealed a feeling of satisfaction when appreciating the company and NCDMB for commencing the refinement of crude while partially meeting local supply.
According to Senator Lokpobiri, “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.” The 5,000-barrel per stream day Waltersmith Petroman, which has been a stable source of diesel, kerosene, naphtha, and high fuel oil to the domestic market since its commissioning in 2020, was for him proof of how beneficial such smaller processing plants could be.
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Lokpobiri also commended the Board for taking up equity in Waltersmith Refinery which quickly facilitated the completion of the modular refinery.
While encouraging Waltersmith Group, the Minister charged companies who have been given the license for modular refineries and marginal field licenses to take cues from Waltersmith and make deliberate investments.
In his words, “If you have a marginal field, an allocation, it is a paper given to you, it doesn’t add value to you or to 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 cancelled.
Explaining the imperative of such a line of action, he said, “It is important that we make this point so that we can retrieve some of those fields to the basket,” so as 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.”
Commending the remarkable success story of Waltersmith, whose Management has announced plans for further expansion, he said, “I can assure you that this Government will do whatever we can to support you so that you can continue to grow.” He had similar words of praise for the Nigerian Content Development and Monitoring Board (NCDMB), whose direct involvement through equity participation, greatly facilitated the take-off and operations of the Refinery.
Also giving a remark is Engr. Simbi Kesiye Wabote who is the Executive Secretary of NCDMB. He admitted that the decision made by the Board to participate as an equity holder in Waltersmith was informed by its sense of mission and the impressive organisational 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.
In an interview at the conclusion of the tour, the President and Group Chief Executive Officer of Waltersmith Petroman Oil Limited, Mr. Abdulrasaq Isa, said part of the expansion plans of the company is 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.
Ayodelé is a Lagos-based journalist and the Content and Editorial Coordinator at Meiza. All around the megacity, I am steering diverse lifestyle magazine audiences with ingenious hacks and insights that spur fast, informed decisions in their busy lives.