Firm to build refineries in Lagos, Ondo

Ode-Aye Refinery Limited has concluded plan to establish Greenfield and modular refineries in the country in the next 18 months.

The company’s Director, Prince Bayo Otulana, said in Uyo on Monday that the refineries would be located in Ondo and Lagos states.

Otulana stated that the modular refinery would be completed within 18 months from January 2016, while the Greenfield refinery would take a period of 36 months to be completed.

When completed, the Greenfield refinery is expected to refine 200,000 barrels of crude oil per day, while the modular refinery will have three units and produce 3,000 bpd from each of the units.

Otulana explained that adequate arrangements had been made to ensure the effective take-off of the refineries in both states.

He added that the company had arranged with Federal Government through the Department of Petroleum Resources to ensure adequate supply of crude to the refineries.

“We have secured adequate incentive from the government through the Department of Petroleum Resources. They have promised to supply us 60 per cent of the raw materials, while we will source for the remaining 40 per cent from private markets,” he said.

The director said the modular refinery would cost approximately $8bn upon completion.

On the source of funding, Otulana said the refineries would be funded by Lyords Offshore Funding Corporation through project guarantors of bank instrument issued by 35 banks in the world at a single digit interest rate.

He said that the company had secured licences for the refineries and had Cospower Engineering Pvt. Limited from India as a technical partner to ensure that the dream comes to reality.

According to him, each of the refineries will generate 1,000 direct jobs and over 5,000 indirect jobs for Nigerians.

The Director, Cospower Engineering, Mr. Felix Kadam, said that the technical partner would be back in the country by January 2016.

Kadam said the technology that would be employed would sustain the quality of products from the refineries, adding that the plants would add to the development of the nation’s economy.

#Punch

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: