Integrated Oil to Build N25.8bn Refinery in Lagos

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Emmanuel Ihenacho

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INTEGRATED Oil and Gas Limited, an indigenous company, has been given initial license to commence preliminary work towards building a 20,000 capacity modular refinery in one of the islands on the coast of Lagos. The refinery is expected to gulp between $75million and $250 million.

Emmanuel Ihenacho, chief executive officer of the company, who stated this in Lagos, on Wednesday, February 17, said his company has gotten preliminary approval from the Department of Petroleum Resources, DPR, and has commenced work on the Environmental Impact Assessment, EIA.

He explained that the company is working on other necessary requirements needed before the final approval for the refinery could be granted. He described the process leading to the final licensing for the project as a “continuous” one which is given in stages, saying that he intends to get funding for the project from both foreign and local banks.

“If you go to the DPR website you will see all the terms and conditions for granting of refinery licenses. The DPR gives you license in stages, it gives you license to establish, license to construct and after that it gives you license to operate. DPR would not sit down and say let us go and do an EIA and after that they will give you license. They give you license based on the technology that is used for refining and your ability to give then very good presentation on that subject before they say alright go and start it,” he said.

According to Ihenacho, if the refinery is constructed without the capacity to produce Petroleum Motor Spirit, PMS, Automated Gas Oil, AGO and the like, the cost would be around $75 million (N25.8 billion), whereas if those components are included, the cost would be around $200 million (N69 billion). He said several meetings have been held between the company’s management and the traditional rulers around the area, with a view to get the consent of the host communities.

Contrary to insinuations that the construction of the refinery has started, he said, “We have not even started construction by the way; we are just going through the pre-application process. I am ready to stand by the truth and what is right at all times. I am not the one to go and appropriate property to build a refinery. I am not going to put my hands in your pocket and force money out of it. I am not going to force you to tell me what you do not know about building refineries.

“Refineries are very important infrastructure in the country and it will enhance the image and prestige of the country. If I think that I can articulate a business plan that I can take to the bank and they would then lend me money to build the refinery, while will I not do it? I do not want anybody to be deceived or fooled by fake or funny stories.”

Culled from Vanguard

— Feb 29, 2016 @ 01:00 GMT

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