It
is no longer news that the Nigerian Federal Government made a policy decision
to convert illegal refineries in the country to modular refineries. It is now
becoming clearer how this transformation will evolve by the day as the
government begins a process of turning his proposal to concrete actions.
The
Nigerian Government concept and guidelines for the setting up of these
refineries is being revealed daily through the Vice President Prof Yemi
Osinbajo.
While
on a visit to Abia State, which is also an oil producing state by virtue of
crude oil being produced in some of their communities Profesor Osinbajo
revealed some of the blueprints for the operation of the refineries.
The
Vice President disclosed that every modular refinery will be established in an
oil producing area as part of measures to address developmental challenges
arising from many years of marginalization and neglect.
The
Vice President also disclosed that the illegal refineries will be integrated
into the structure of Modular refineries operations. Nigerian Government, he
disclosed is considering a platform of co-operatives and groups of people in
the Niger Delta teaming up to own and operate refineries so as to be able to
successfully and profitably manage and sustain them.
Already
experts in the Nigerian National Petroleum Corporation (NNPC) and the Nigerian
Sovereign Investment Agency (NSIA) two bodies spearheading the takeoff of the
new concept have given insight into how the new concept will operate.
Under
the plan, Crude oil will be supply to the proposed modular refineries by Nigerian
Government at a subsidized rate to discourage vandalism of crude oil pipelines
and encourage a safer and greener environment in the Niger delta region. Apart
from the Nigerian Government, Marginal field operators also can as well supply
crude oil to these new modular refineries at agreed subsidizes rates to refine.
It
is also proposed by the Government that owners and operators of illegal
refineries will partner with their communities as shareholders in any modular
refineries approved for an area while the NNPC and NSIA will hold equity in
such a refinery to guarantee its operational efficiency and standard
compliance.
It
is further proposed by expert’s fine tuning the modular refineries concept that
Memorandum of Understanding (MOU) with respective communities who subscribed to
this vision will be entered into between them and the Nigerian Government to
spelled out their shares and terms of operation. The Government represented by
the industry regulators such as NNPC will supervise and regulate the implementation,
operation, and Sustenance of such a refinery.
In
respect of the technical aspect of transforming from a makeshift, local and
crude refinery to a modern, structure and automated modular one the concept of
transformation will be design and apply by the NNPC and NSIA. It is the
believed of Government that such a modular refinery will be adapted to suit the
use and operation of the low class and average literate community of the Niger
Delta.
NEWS
COMMENTARY;
The
concept of converting local, makeshift refinery into modern modular one is a
game changer in the development of the Niger Delta region. Apart from reducing
the frequent vandalism of crude oil pipelines which cost the Nigerian
government a fortune to repair, it will also ensure a safe and greener
environment as gas flaring and fire incidents will be contained.
It
will provide enormous employment to the people of the Niger delta, in turn,
curbing restiveness and cultism. It will also improve the living standard of
the people and engineered specialization and technical capacity of the people
of the region.
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