Post Views: 140 Photo Caption: (sitting) Left to right: Representative of China SINOPEC Consortium, Mr Yang Hongtao; Edo State Governor, Mr Godwin Oba...
Photo Caption: (sitting) Left to right: Representative of China SINOPEC Consortium, Mr Yang Hongtao; Edo State Governor, Mr 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 on Wednesday, January 10, 2018
(standing) Tian Tim of China SINOPEC Consortium; Commissioner for Finance, Edo State, Hon. Osagie Inegbedion; Consul-General of the People’s Republic of China in Lagos, Mr. Chao Xiaoliang; Nigerian Ambassador to China, Amb. Usman Bakori; Chairman, Edo State Strategic Planning Team, Prof. Julius Ihonvbere and Majority Leader, Edo State House of Assembly, Hon. Roland Asoro.
Governor Godwin Obaseki of Edo State, on Wednesday in China, signed a Memorandum of Understanding (MoU) with a Chinese consortium for a 5,500 barrel per day modular refinery in Edo State.
The consortium, according to the state government, comprises: Peiyang Chemical Equipment Company of China (PCC), a world leading modular refinery company; Sinopec International Petroleum Service Corporation (SIPS) which is a subsidiary of Sinopec, the top Chemical giant in the world and African Infrastructure Partners (AIP), a Nigerian Infrastructural company.
The first phase of the project will be ready within 12 months after all necessary regulatory approvals.
The signing ceremony took place at SINOPEC headquarters in Beijing, China, and was witnessed by officials of the Nigerian Embassy in the Asian country as well as staff of SIPS Nigeria, a major local fabrication company, with a branch in Benin City, Edo State.
Speaking at the event, Governor Obaseki, expressed 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, post-commissioning.
The governor assured that the refinery construction will provide jobs for several Edo youths, including those being evacuated from crisis-ridden North African country- Libya.
Obaseki added that the modular refinery will solve the problem of inadequate petroleum products in the country, turning Edo State to the preferred source of petroleum products considering its gateway status to other parts of the country. He expressed deep appreciation to the management of PCC and SIPS, reiterating that with their support, Edo 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.
“With the federal government of Nigeria’s commitment to support communities in the Niger Delta states to set up modular refineries, the SIPS fabrication yard in Benin City is expected to be very busy handling the fabrication jobs of modular refineries in the Niger Delta Region,” Obaseki was quoted as saying.
He pledged that his administration will 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.
PCC also agreed to finance the Demonstration modular refinery up to 70%, 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 500 barrels per day demonstration refinery and phase 2 consisting of a 5,000bpd capacity refinery. The PCC will also serve as the Operations and Management company before transferring it to local investors.
The demonstration refinery will serve as proof of concept and to train the indigenes in the management of the refinery.
The event is coming hours after a similar MoU was signed with China Harbour Engineering Company Ltd. in Beijing, China, for the development of the Gelegele Seaport in Edo State.