By KUNLE KALEJAIYE

Eleven years after former President, Olusegun Obansanjo granted licenses to 18 individuals to construct refineries in a bid to open up the country’s downstream sector of the petroleum industry to private investors, there are indications that the government will not achieve its aims, as issues bordering on financing are hindering the construction of refineries by the investors.

Specifically, uncertainty has shrouded the construction of nine licensed private refineries construction in the country.

Construction of six out of the nine refineries and petrochemical plants are yet to commence since August 2010, according to recent update on the Department of Petroleum Resources, DPR official website, while three of them have commenced construction.

The fabricated process components of Topping (hydro-skimming) plant owned by Amakpe International Refinery Inc with 12,000 bpd capacity have been duly inspected  and certified fit for shipment to Nigeria. Construction kicked off in 2007 and completion of the first phase of the project was done in 2010.

However, the 27,000bpd refining capacity mini-conversion refinery, owned by Antonio Oil in 2010 commenced Civil/ structural works on site. Till date, according to the DPR nothing has been done on the Modularized Portable Topping (diesel-extraction) plant with 1,000bpd refining capacity owned by Niger Delta Petroleum Resources in Ogbelle, Rivers State after it commenced installation of units of the plant in 2009. Since August 2010, the plant status has remained the same.

For the 100,000bpd capacity Complex conversion (cracking) refinery operated by Resource Petroleum & Petrochemicals International Incorporated in Ikot Abasi, Akwa Ibom State, its project description is yet to be ascertained, however, the design basis has been completed, but awaiting review by DPR and RPII.

Another 100, 000bpd capacity Complex Conversion (cracking) refinery owned by Sapele Petroleum Limited in Okpe-Sobo, Sapele, Delta State is yet to be ascertained but configuration and marketing studies have been carried out.  Since August 2010, construction is yet to commence.

According to DPR, Rehoboth Natural Resources Limited that was granted an LTE license in 2008 to construct a Topping (hydro-skimming) 12,000bpsd capacity refinery plant in Immingiri, Bayelsa State revealed that the project execution strategy has not firmed up. But the company has applied to convert ATC to LTE while they are currently working on retrieving commitment deposit. Construction is yet to commence.

The web site also noted that an LTE license was granted to Amexum Corporation to construct 100,000bpd capacity Complex conversion (cracking) refinery in Ikang, Cross Rivers State. The plant is to be constructed in four phases with each of 25,000 bpd capacity modules. However, lack of financing for project has stalled the kickoff of the project.

Another refinery that is yet to commence construction is the Ipokia, Ogun State 100,000bpd Complex conversion (cracking) refinery by Gasoline Associates International Limited Refinery.

According to DPR’s web site, the project is yet to kick off.  DPR explained on its web site that the licensee didn’t attend refiners’ status meeting.