The establishment of another modular refinery in Edo state of Nigeria is expected to increase crude oil production from 6,000 barrels per day (bpd) to 60,000 bpd. The project is being developed by two Chinese firms; AIPCC Energy Limited, Peiyang Chemical Equipment Company Limited (PCC). and African Infrastructure Partners Limited

In preparation for the commencement of full  operations at the refinery, the company has applied to the National Petroleum Corporation for the supply of crude for use in the phase one development of the facility. The refinery is expected to commence between September and mid-October. The first phase will produce 1,000 bpd, while the second phase will produce 6,000 bpd; with a long-term goal of producing 60,000 bpd. 

Phase one – which is almost complete – will target a production ratio comprising 55% diesel, 38% fuel oil and less than 10% naphtha. 

“Some of the products will be exported to boost foreign exchange earnings and by the time we extend it into different phases. We would be able to take care of more than 80% of diesel requirement in Nigeria. That is the vision we have for the next five years,” says Segun Okeni – AIPCC Energy Limited Head of Quality, Health and Safety/Community Relations.

The investment will benefit the Edo people through job creation, increased revenue and ease of pressure on other refineries. 

Michael Osime, chairman of the company, said in a statement that the refinery had reached an advanced stage of development requiring the use of drocarbonsy.

In addition, Osime said discussions were also ongoing with marginal field owners for crude supply as the refinery was designed to use various grades of crude.

He disclosed that the company currently had noted  Peiyang Chemical and Equipment Company of China in charge of its operations and management with plans to train Nigerians over a short period to take over the operations of the facility.

 “Following the gains in the first phase of the refinery, AIPCC Energy Limited has commenced plans to build 30,000 barrels per day refinery as an expansion. and would increase the refining capacity in Nigeria and meet 18 per cent of the local demand for diesel in Nigeria,” Osime said.

The Edo Modular Refinery is an addition to other numerous modular Refineries expected to come on stream soon in Nigeria. Waltersmith and Dangote Modular Refineries are among other line of oil and gas investment expected to come of stream in Nigeria downstream sector.

 The sudden increase in pace of work in their various sites is believed to be unconnected to recent removal of petrol subsidy by the Nigeria present government. But most industrialists and major investors in the nation’s energy sector believe that there is need for full deregulation of country’s downstream sector if private modular refineries are expected to strive and enable return of investment to the investors.