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Obaseki, China Sinopec sign 5,500bpd Edo modular refinery deal

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Representative of China SINOPEC Consortium, Yang Hongtao (sitting left); Edo State Governor, Godwin Obaseki; Managing Director, ICMG Securities Limited, Micheal Osime during the signing of a Memorandum of Understanding (MoU) for a 5,500bpd modular refinery between Edo State government and SINOPEC of China, at SINOPEC headquarters in Beijing, China…yesterday.

Edo State Governor, Mr. Godwin Obaseki, yesterday in China, expanded the portfolio of foreign investments in the state following the signing of a Memorandum of Understanding (MoU) with a Chinese consortium for a 5,500-barrel per day modular refinery in the state.

The event is coming hours after a similar MoU was signed with China Harbour Engineering Company Ltd. in Beijing, for the development of the Gelegele Seaport in Edo State.

The Chinese consortium that will handle the modular refinery is made up of Peiyang Chemical Equipment Company of China (PCC), a world leading modular refinery company;  Sinopec International Petroleum Service Corporation (SIPS), a subsidiary of Sinopec, and  African Infrastructure Partners (AIP), a Nigerian Infrastructural company.

 
The first phase of the project will be ready within 12 months after all the necessary approvals are granted by the regulatory authorities. 

In addition, PCC also agreed to finance the demonstration modular refinery up to 70 per cent, thereby assisting in scaling  the financing hurdle that has militated against the development of modular refineries in Nigeria.

The project will be executed in two phases; phase 1 consisting of 500bpd demonstration refinery and phase 2 consisting of a 5,000bpd capacity.

The PCC will also manage the refinery before transferring it to local investors.

The MoU signing ceremony, which took place at Sinopec headquarters in Beijing, China, was witnessed by officials of the Nigerian Embassy as well as staff of SIPS Nigeria. 

Governor Obaseki, expressed his delight at the local content component of the deal, which will ensure that Edo citizens are trained in welding, refinery operation and fabrication works to enable them participate in the construction of the refinery as well as its operation and post-commissioning.

He assured that the refinery construction will provide jobs for several unemployed Edo youths including the Libya returnees.

Obaseki added that the modular refinery will solve the problem of inadequate petroleum products in the country and will turn the state to the preferred source of petroleum products considering the gateway status to other parts of the country.

He expressed deep appreciation to the management of PCC and SIPS reiterating that with their support, the state is well on its way to becoming a hub of skilled manpower for the oil and gas industry and give boost to Nigeria’s local content policy.

He pledged that his administration would provide community support to the project, assist in securing all regulatory approvals from the appropriate regulatory authorities such as the federal ministry of petroleum resources.

The demonstration refinery will serve as proof of concept and to train indigenes in the management of refinery.


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EdoMr. Godwin Obaseki
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