Modular Refineries To Address Nigeria’s Fuel Shortfall – CIG President | Independent Newspapers Limited
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Oil & Gas

Modular Refineries To Address Nigeria’s Fuel Shortfall – CIG President

Posted: Jul 26, 2016 at 1:38 am   /   by   /   comments (0)

The National President of the Certified Institute of Geographers (CIG), Mallam Adamu Sambo, has called on the Federal Government and other investors in the nation’s oil and gas industry to adopt modular refinery strategy to tackle Nigeria’s fuel challenges.

Sambo, who pointed out that modular refineries would not only address the country’s short-term need but also adequately take care of the nation’s local consumption demand, said the Federal Government should regulated it to make it more meaningful to the country.

CIG boss said: “Modular refineries are the kind of refineries for small scale compact refineries which, I think, Nigeria should start using, because it is very easy to build such refineries.

“It will take you just about a year to build those kinds of refineries. Those ones can easily take care of our needs. The government should just regulate those refining petrol illegally and provide them with technical support and funding instead of hounding them and destroying their facilities.

“Instead of Civil Defence officers chasing those boys who are establishing illegal refineries, they should bring them together and help them to access fund from this Nigerian Petroleum Development Fund (PTDF) and organise them in building these modular refineries, small scale refineries.

“Those small scale refineries can take care of our local consumption. A lot of people will be employed and a lot of businesses will wake up as a result of that. The psyche of the government is very unfortunate.

“The government is supposed to call these people together, get the Nigerian National Petroleum Corporation (NNPC) engineers because, I can tell you, the immediate past and present Nigerian engineers working with NNPC can design those modular refineries and build them.

“Those building these illegal refineries were ex-workers of these oil companies. They know how it works, they have the knowledge, they have the technical capacity, but they are not being encouraged. In fact, they are being turned into criminals because what they are doing has not been approved by the government,” he stated.

Sambo also disclosed that the reason why multinational oil firms would not like to be involved in the Lake Chad Basin, stating that it was uneconomical for them to drill oil almost 2,000 kilometres away when they could easily drill the oil in the high sea and also load the tankers in the high sea

He said: “The issue of oil and gas exploration in the northeast has actually been there for a very long time. From geological studies, there is oil there and there is gas, but whenever it comes to the exploitation of the resources, the oil companies do not want to go there.

“They ask the simple questions: Why should I go there? When I get the crude oil, what will I do with it? Export it or refine it? If I refine it, I will be getting local naira.

“The companies are coming to invest dollars and they will be getting local naira – they are not interested. They want to invest dollars and they want to get dollars back.

“So, why should I go to northeast to drill oil almost 2,000 kilometres away when I can drill the oil in the high sea and load the tankers in the high sea? That is just the basic economics that prevented the exploitation of oil in the northeast.

“Countries like Chad have no choice but to endure the rigour of exploring crude oil in the Lake Chad Basin where it is located, given the country’s economic condition.

“They have been drilling oil in the Republic of Chad for more than 10 years. They had to construct a 200,000 kilometres export pipeline. They are not refining in Chad. They are exporting it from Chad across the whole length of the Republic of Cameroon to the sea, to export their oil, because they do not have much natural resources around, or they do not have the capacity to tap the other natural resources.

“That one is the easiest one from which they would get forex. So, they need it. They are still taking crude oil from that axis, but they have to pump it 200,000 kilometres from the pumps to export,” he stressed.