By Ediri Ejoh
LAGOS — To encourage and fast-track the establishment of modular refineries in the country, the Department of Petroleum Resources, DPR, has slashed by 50 per cent the licensing fee. Participants are to pay half a million dollars as against the initial $1 million.

The measure was unveiled, yesterday, at a one-day stakeholders’ workshop on the Guidelines for Establishing Modular Refineries in Nigeria.

“DPR has reduced the licensing fee from $1 million to $50,000 for establishment of the modular refineries in the country. We do not think that the amount is too much for any serious investor. Setting up a refinery is a capital intensive project, which demands that all financial related issues are settled before application could be made,” it said.

The move is meant to solve the problems associated with shortages of refined petroleum products in the country. This came as the DPR lists conditions for participation under the new guidelines.

The conditions

Besides the formal application, investors must also conduct detailed feasibility studies; identification of technology application; source of funding; application and licensing.

Others include:

*capacity range of a module of between 1,800 and 30,000

*installation must be typically skid mounted for easy mobility from one location to the other,

*plant location must be at the discretion of investors

*feedstock choice must be typical Niger Delta light sweet crude oil with good sulphur content of 0.2.

The event which played host to all the major players in the upstream sector including some Marginal Oil Field operators, presented opportunities for DPR to engage investors on how to tackle some of the issues and challenges hindering the setting up of refineries.

The Director, DPR, Mr. George Osahon, who spelt out the guidelines, said the regulator’s role will be limited to the entire process, especially in the management of the initiative as well as the issuance of licenses and approvals to operators.