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FG to revoke licences of oil fields not investing in refining
The Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, has stated that the Federal Government will henceforth cancel marginal field allocation without requisite investment.
Speaking during a facility tour of Waltersmith Petroman Oil Limited, Ibigwe, Ohaji-Egbema Local Government Area of Imo State, the minister commended Waltersmith Group and the Nigerian Content Development and Monitoring Board (NCDMB) for supporting the Federal Government agenda of improving domestic refining capacity.
While commending Waltersmith Group, the Minister charged companies who had been given the licence for modular refineries and marginal field licences to take cues from Waltersmith and make deliberate investments.
He expressed federal government satisfaction toward the company and NCDMB for taking the bull by the horns to commence local refining of crude and partially meeting the demand of the locals.
The 5,000-barrel per stream day by Waltersmith Petroman, which has been a stable source of diesel, kerosene, naphta, and high fuel oil to the domestic market since its commissioning in 2020, was for him a proof of how beneficial such smaller processing plants could be.
He commended the board for taking up equity in Waltersmith Refinery which quickly facilitated the completion of the modular refinery.
Lokpobiri said, “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
“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.”
The minister recalled that he had warned at the recent Nigeria Economic Summit Group (NESG) event in Abuja that marginal field licences without the requisite investments risked 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.”
“I can assure you that this Government will do whatever we can to support you so that you can continue to grow,” he added.
In his remarks, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote, said the decision of the board to participate as 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 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 was 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 into the Nigerian market since its commissioning in 2020.
