DPR denies withdrawing licences of private refineries

The Department of Petroleum Resources (DPR) has said that the licences of private refineries which failed to come on stream between 2002 and 2014 have not been withdrawn.

In a statement yesterday, DPR stated that it had not withdrawn the licence of any private refinery in the country.

Reacting to The Guardian’s publication titled “Why Private, Greenfield Refineries Can’t Take Off,” DPR said the licences of all private refineries, both conventional and modular, would be valid till 2017.

It noted that the $1 million commitment fee mentioned in the publication is no longer a requirement in the current guidelines for establishment of refineries in Nigeria

DPR stated: “There are currently 25 private refinery licences issued by DPR and not 45 as stated in your report. Of the 25 licences, 21 are in the Licence to Establish (LTE) category, while four are in the Approval to Construct (ATC) category.

Of these, three are billed to construct conventional stick-build plants and 22 will construct modular units with a combined capacity of 1,429,000 barrels per day (bpd)

“DPR did not revoke the licences issued to investors in 2004 as claimed in the report, rather, the Department granted Approvals to Construct (ATC) to 17 companies with a 24 months validity period.

“This culminated in the review of the statutory framework for licensing and the birth of a new guiding document ‘Guidelines for the Establishment of Hydrocarbon Processing Plants in Nigeria’ which is currently in use.”

DPR pledged commitment to its regulatory oversight of the oil and gas sector and in alignment with the aspirations of government to continue to engage all stakeholders for efficient service delivery.