THE Nigerian Content Development and Monitoring Board, NCDMB, has signed a $10 million equity investment agreement with Waltersmith Refining and Petrochemical Company Limited for the construction of 5,000 barrels per day modular refinery to be located at Ibigwe, Imo State. Simbi Wabote, executive secretary, NCDMB, said the investment decision was in line with the board’s vision to be the catalyst for the industrialisation of the Nigerian oil and gas industry and its linkage sectors.

Wabote and Isaac Yalah, director, finance and personnel management, NCDMB, signed on behalf of the board, while Abdulrasaq Isah, chairman, Waltersmith, and Danjuma Sale, executive vice chairman, signed for the company. Under the shareholders agreement and the share subscription agreement, the NCDMB took 30 percent equity in the modular refinery.

According to Wabote, the board was keen to support the federal government’s policy on modular refineries. He said this would meet the key objectives of the petroleum industry’s seven big wins launched by President Muhammadu Buhari in October 2016, as well as the Economic Recovery and Growth Programme, EGRP.

“We have our exit strategy in place to ensure that the refinery reverts back as a fully owned, privately run modular refinery as our role is clearly defined as a catalyst,” he said.

Wabote commended Waltersmith for developing a bankable proposition, stating that they sorted out the project feasibility, regulatory approvals, and other pertinent details before reaching out to the board with the value they brought to the table and a clear definition of the support they seek.

On his part, Isah explained that the modular refinery project was originally conceived to mitigate the incessant vandalism of the company’s crude oil pipelines, but feasibility studies later indicated that it could be a viable business because of the significant demand for refined petroleum products.

He disclosed that the refinery would be sited close to the firm’s oil field at Ibigwe, and the refined products would be distributed to consumers within 40 kilometer radius of the plant.

He expressed optimism that the project would support the federal government’s plan to substitute imported refined petroleum products and as well as the strategy to use the establishment of modular refineries to address the menace of pipeline vandalism, illegal refining and other social challenges prevalent in the oil producing region.

Isah commended the leadership of the NCDMB for supporting the project and assured that the company would do everything within its power to make it a success. “This is landmark in the history of the NCDMB and we pride ourselves as the first beneficiary of this initiative.”

– July 6, 2018 @ 11:55 GMT |