Private Refinery: Thirteen Companies Get Building Approval DPR Faults House Committee On Oil Block Awards

Wire mesh corrugatedThirteen firms have up to now received Federal Authorities approval to commence development of personal refineries, greater than two years after they had been initially granted preliminary licences.

Director of the Division of Petroleum Assets (DPR), Mr. Mac Ofurhie, who made this identified yesterday in Lagos, faulted the report of the House of Representatives Committee on Petroleum Sources concerning the strategy of awards of oil blocks by the department.

Ofurhie mentioned that the thirteen firms, which he did not name, have been the ones that met the June 2004 prolonged deadline to meet pointers for approval to construct.

“We issued licences to 18 corporations two years ago. They had been supposed by June this year, to have been prepared to start construction. Out of the 18, only about 13 have been issued licence to start out building, that’s, the second section,” stated Ofurhie.

The remaining five corporations, according to the DPR boss, should await Federal Government’s decision whether to increase the deadline or not.

“There isn’t a indication that we’ll extend it for now. They are already late. nevertheless it could possibly be reconsidered in future,” he stated.

The Petroleum Assets Ministry had in June 2002 given 18 companies preliminary licences. The businesses embody Akwa Ibom Refining and Petrochemicals Limited, Tonwei Refinery, Ilaje Refinery and Petrochemicals, NSP Refineries, Oil Providers Ltd, and Ode-Aye Refinery Ltd.

Others are Orient Petroleum Resources Ltd and Owena Oil and Gasoline Ltd., Southwest Refineries and Petrochemicals Firm, Starex Petroleum Refinery Ltd, The Chasewood Consortium, Total Support Refineries and Union Atlantic Petroleum Ltd.

The private refineries had been to praise the prevailing ailing 4 state-owned refineries, which regardless of having a mix manufacturing capability of 445,000 barrels per day (bpd), stay unable to satisfy the nation’s petroleum products demand.

Analysts have contended that growing local manufacturing of gas remained the only answer to the frequent hike in gas costs.

The DPR chief additionally yesterday instructed news males that the Home Committee on Petroleum Resources goofed in its report on oil lifitngs, awards of blocks and the discharge of information on operations of the trade to the Nationwide Meeting.

The Committee chairman, Hon. Cairo Ojougbo, had in his report on the result of the oversight functions of the committee, acknowledged amongst others, that the DPR had failed to help the committee with information and that it discovered an award of oil block to a hairdresser to the spouse of a president. Ofurhie challenged Ojougbo to name the hairdresser or the oil block involved. “I can’t think about it. They did not even title the block. If they acknowledged the block, then we might have been in a position to say sure, this block was given to a girl, whether she is a hairdresser we’d in all probability won’t know. “Until we get an concept what block they had been referring to, I can’t even hazzard a guess,” he said. Ofurhie, however, mentioned the purported block may need been awarded beneath discretionary awards by previous navy regimes. “However this regime, since 1999 we by no means had any discretional allocation of blocks. We had one open block bidding that happened in 2000.” “One of the major obligations of the DPR is the monitoring and supervision of crude oil manufacturing and Petroleum Product export. It’s therefore unimaginable that anyone who has not studied the procedure put in place can question, based mostly on assumptions, the competence of the DPR to monitor crude oil export on the terminals or the processes put in place for identical. “When chosen members of the House of Representatives Committee on Petroleum Sources visited the Department as a part of their oversight responsibilities on Monday, October 18, 2004, we obliged them with all the knowledge demanded and made presentations to them on our mode of operations and the personnel funds performance as at August 2004. “We explained that the Division’s personnel cost allocations cowl salaries and other personnel allowances, medical expenses, Canteen services, transfer advantages and different sundry expenditures as obtained in the NNPC (Nigeria National Petroleum Corporation). We additionally submitted all our personnel expenditure profiles from January – August 2004 to the committee as we had accomplished to members of a similar committee from the Senate, who earlier visited for a similar train,” Ofurhie mentioned. In a associated development, authorities of the Nigeria-Sao Tome and Principe Joint Development Authority (JDA) yesterday obtained a directive to begin processes resulting in the award of extra oil blocks out of the excellent eight blocks whose offer for tender was put forward in April 2003. Talking at the opening of the 8th Joint Ministerial Council (JMC) Assembly yesterday in Abuja, Nigeria’s Minister of State for Overseas Affairs, Alhaji Abubakar Tanko mentioned the Authority is being directed to provide you with the mandatory guidelines for a value efficient and clear system for the award of extra oil blocks in the Joint Improvement Zone. “Conscious of the truth that licensing just one block is not going to generate the specified level of exercise and revenue to the 2 governments, the JDA will probably be directed to provide you with necessary guidelines for a value efficient and clear system for the award of further blocks for the 2003 Licensing Spherical”, Natural-Gas Processing Equipment he mentioned. He described the 2-day council assembly as very crucial as it might additionally take a final look at the negotiations of the Manufacturing Sharing Contract (PSC) which has been on in the last few months. Other essential issues thought of by the ministers embody issues referring to the graceful running of the JDA and its activities and consideration of the processes for awarding extra oil blocks. The Minister observed that the JDA has in recent instances undergone some transformation, apparently referring to the modifications which led to the coming on board of more folks to the Joint Ministerial Council in addition to appointment of a new board for the authority. Tanko expressed confidence that with the calibre of the brand new members of the JMC and JDA board, they’ll all work assiduously to actualize the desires and aspirations of the founding fathers of the mission. The chief of the Sao Tome delegation and the nation’s Minister of Pure Sources and Atmosphere, Engr. Arlindo Carlhvalo, mentioned his staff has thought of all facets of the PSC for first oil block in readiness for the ultimate settlement. “We have analyzed issues relating to the final PSC agreement on the first a part of the bidding and is creating situations for the award of more oil blocks from the zone, which is of great importance to us”, he mentioned. Nigeria and Sao Tome and Principe signed a treaty on February 21, 2001 to jointly develop and manage the petroleum and pure assets within the JDZ. The signing of the treaty led to the inauguration of the board for the JDA on January 16, 2002 and since then, the JDA has been capable of formulate guidelines on the fiscal regimes that will information oil and fuel operations in the zone. The announcement of the American oil company, Chevron-Texaco, because the winner of the operatorship of the primary oil block in October 2003 formed part of the high point of the Joint Growth agreement.