TONWEI REFINERY | Molecular Science
Export Oriented Oil & Gas Refinery

THE quest for the deregulation of the downstream oil sector received a boost last weekend as President Olusegun Obasanjo laid the foundation stone of the first private refinery in Bayelsa State. The Tonwei Refinery, to be constructed at the cost of $1.5 billion at the Agge Ocean view in Ekeremor Local Government Area of the state is among the 18 private refinery licences recently granted by the Federal Government with a capacity of 100,000 BPSD which could be increased to 200,000 BPSD at full capacity production. Speaking at the ceremony held at Agge, close to the Atlantic Ocean, President Obasanjo said it was only through radical policy decision as witnessed today that the country can overcome the many problems bedevilling the downstream sector of the oil industry as well as effectively empowering the local entrepreneurs. Said he: "By opting for liberalisation, government intended to rid the monopoly of the supply and distribution chain of the industry while private individuals and corporate bodies that have the means and technical know-how are to be brought on board to compete so that with time, the problems of the industry will disappear. Additionally, all barriers to entry by new participants are to be lifted." Government, he noted, will continue to formulate policies that will further consolidate the participation of Nigerian entrepreneurs in the nation's oil and gas industry, adding: "It is our strong belief that after more than 42 years in the life of our nation, our country men and women should not be mere spectators in an industry that is the live wire of our national economy." According to Chief Obasanjo, who was represented by his Special Adviser on Petroleum, Funso Kupolokun, the project will not only provide employment for hundreds of Nigerians but also end products scarcity as well as facilitate the springing up of many ancillary industries. "For the entire Nigerian people, the establishment of private refineries like the one whose foundation-laying ceremony is being performed today has the capacity to inject massive private capital into the system, thus buoying the nation's economic activities. More importantly, however, is the fact that Nigeria's future local consumption could be met through refined products from refineries located within our shores," he said adding that this will increase the country's earning from oil as more revenue is bound to accrue from sale of finished products as opposed to mere crude oil marketing in the international market, thereby making Nigeria the hub of supply and distribution of petroleum products in the West coast of Africa. He charged the individuals and corporate bodies behind Tonwei Refinery not to relent in ensuring that the project comes on stream according to schedule as well as the host communities to lend their support to the management of the refinery to ensure its early completion.

 

Reference: http://allafrica.com/stories/200210230287.html

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