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Private Refinery: 13 Firms Get Building Approval DPR Faults Home Committee On Oil Block Awards

Thirteen companies have so far received Federal Government approval to begin development of personal refineries, greater than two years after they have been initially granted preliminary licences.

Director of the Division of Petroleum Sources (DPR), Mr. Mac Ofurhie, who made this known yesterday in Lagos, faulted the report of the House of Representatives Committee on Petroleum Assets regarding the strategy valero oil refinery of awards of oil blocks by the department.

Ofurhie mentioned that the 13 firms, which he did not identify, were those that met the June 2004 prolonged deadline to fulfill guidelines for approval to assemble.

“We issued licences to 18 companies two years ago. They were supposed by June this year, to have been ready to start construction. Out of the 18, solely about 13 have been issued licence to start out construction, that’s, the second section,” mentioned Ofurhie.

The remaining 5 companies, in accordance with the DPR boss, should await Federal Authorities’s choice whether or not to extend the deadline or not.

“There is no indication that we are going to prolong it for now. They’re already late. however it might be reconsidered in future,” he stated.

The Petroleum Assets Ministry had in June 2002 given 18 firms preliminary licences. The companies embody Akwa Ibom Refining and Petrochemicals Limited, Tonwei Refinery, Ilaje Refinery and Petrochemicals, NSP Refineries, Oil Services Ltd, and Ode-Aye Refinery Ltd.

Others are Orient Petroleum Resources Ltd and Owena Oil and Fuel Ltd. Southwest Refineries and Petrochemicals Firm, Starex Petroleum Refinery Ltd, The Chasewood Consortium, Complete Help Refineries and Union Atlantic Petroleum Ltd.

The non-public refineries had been to compliment the existing ailing 4 state-owned refineries, which despite having a mix manufacturing capability of 445,000 barrels per day (bpd), stay unable to meet the nation’s petroleum merchandise demand.

Analysts have contended that growing native production of fuel remained the only solution to the frequent hike in gasoline costs.

The DPR chief also yesterday advised information men that the House Committee on Petroleum Assets goofed in its report on oil lifitngs, awards of blocks and the discharge of data on operations of the trade to the Nationwide Meeting.

The Committee chairman, Hon. Cairo Ojougbo, had in his report on the end result of the oversight functions of the committee, acknowledged among others, that the DPR had failed to assist the committee with data and that it found an award of oil block to a hairdresser to the wife of a president. Ofurhie challenged Ojougbo to call the hairdresser or the oil block involved. “I can not think about it. They didn’t even name the block. If they acknowledged the block, then we might have been in a position to say sure, this block was given to a girl, whether or not she is a hairdresser we would probably will not know. “Till we get an concept what block they have been referring to, I can’t even hazzard a guess,” he said. Ofurhie, however, said the purported block might have been awarded underneath discretionary awards by previous navy regimes. “However this regime, since 1999 we by no means had any discretional allocation of blocks. We had one open block bidding that occurred in 2000.” “Certainly one of the foremost responsibilities of the DPR is the monitoring and supervision of crude oil manufacturing and export. It’s subsequently unimaginable that anybody who has not studied the process put in place can query, primarily based on assumptions, the competence of the DPR to observe crude oil export on the terminals or the processes put in place for identical. “When selected members of the Home of Representatives Committee on Petroleum Sources visited the Department as a part of their oversight tasks on Monday, October 18, 2004, we obliged them with all the knowledge demanded and made shows to them on our mode of operations and the personnel funds efficiency as at August 2004. “We defined that the Division’s personnel price allocations cover salaries and different personnel allowances, medical expenses, Canteen services, switch advantages and other sundry expenditures as obtained in the NNPC (Nigeria National Petroleum valero oil refinery Corporation). We additionally submitted all our personnel expenditure profiles from January – August 2004 to the committee as we had executed to members of the same committee from the Senate, who earlier visited for a similar train,” Ofurhie said. In a associated development, authorities of the Nigeria-Sao Tome and Principe Joint Improvement Authority (JDA) yesterday got a directive to start processes resulting in the award of additional oil blocks out of the outstanding eight blocks whose provide for tender was put forward in April 2003. Talking at the opening of the 8th Joint Ministerial Council (JMC) Meeting yesterday in Abuja, Nigeria’s Minister of State for International Affairs, Alhaji Abubakar Tanko stated the Authority is being directed to give you the required pointers for a price effective and transparent system for the award of more oil blocks in the Joint Growth Zone. “Mindful of the truth that licensing just one block is not going to generate the specified stage of exercise and revenue to the two governments, the JDA might be directed to give you vital guidelines for a price efficient and clear system for the award of further blocks for the 2003 Licensing Spherical”, he mentioned. He described the 2-day council assembly as very essential as it could also take a remaining look at the negotiations of the Manufacturing Sharing Contract (PSC) which has been on in the previous couple of months. Other important points thought-about by the ministers embrace matters relating to the sleek operating of the JDA and its actions and consideration of the processes for awarding extra oil blocks. The Minister observed that the JDA has in recent instances undergone some transformation, apparently referring to the adjustments which led to the approaching on board of more people to the Joint Ministerial Council as well as appointment of a brand new board for the authority. Tanko expressed confidence that with the calibre of the new members of the JMC and JDA board, they may all work assiduously to actualize the goals and aspirations of the founding fathers of the undertaking. The leader of the Sao Tome delegation and the nation’s Minister of Natural Sources and Setting, Engr. Arlindo Carlhvalo, mentioned his team has thought-about all features of the PSC for first oil block in readiness for the ultimate settlement. “Now we have analyzed issues referring to the ultimate PSC settlement on the primary part of the bidding and is creating situations for the award of more oil blocks from the zone, which is of nice significance to us”, he stated. Nigeria and Sao Tome and Principe signed a treaty on February 21, 2001 to jointly develop and handle the petroleum and pure resources in the JDZ. The signing of the treaty led to the inauguration of the board for the JDA on January 16, 2002 and since then, the JDA has been capable of formulate tips on the fiscal regimes that will information oil and fuel operations within the zone. The announcement of the American oil company, Chevron-Texaco, as the winner of the operatorship of the primary oil block in October 2003 formed part of the excessive point of the Joint Development agreement.