…Asks FG to create platform to engage illegal refiners
The Federal Government has been asked to create a platform with which to engage with the mini, illegal, refiners with a view to mainstreaming them into the formal processes of crude oil refining sector of the economy.
This development was part of the resolution of national summit on the integration of mini/modular refinery operations into the in-country oil refining programme of the oil and gas sector recently held in Abuja.
The summit declared open by the Vice President, Prof. Yemi Osinbajo, also was attended by the Hon. Minister of State for Budget and National Planning, Prince Clem Agba and the Senior Special Assistant to the President on Niger Delta Affairs, Senator Ita Enang among others.
According to the communiqué, the summit resolved among other things that the Department of Petroleum Resources, DPR, should develop guidelines for licensing of mini refining operations, and prescribe graduated fees commensurate with the production capacity
The communiqué signed by the Minister of State, Budget and National Planning, Prince Clem I. Agba, Senior Special Assistant to the President, Niger Delta Affairs, Senator. Ita Enang and the Permanent Secretary, Federal Ministry of Niger Delta Affairs, Dr. Babayo -+Ardo and 13 others, also asked that the National Assembly and other relevant stakeholders be engaged to ensure mainstreaming the relevant legal framework for seamless integration of mini and modular refineries.
According to it, “That Federal Government should continually create the platform to engage with the mini (illegal) refiners with the aim to mainstreaming them into the formal processes.
“Upon successful formalization of the mini refineries, part of the funds budgeted for security agencies and pipeline protection could be applied in setting up small scale mini/modular refineries whereby integrated practitioners would now be employed to refine for the nation.
“That the Ministry of Petroleum Resources should establish a desk under the relevant department (Midstream Department) for modular and mini refiners’ operations and develop framework to organize the mini refinery operators into legal operations as it obtains in the Mining Sector;
“The National Assembly and other relevant stakeholders are to be engaged to ensure mainstreaming the relevant legal framework into the National legal system to ensure seamless integration of mini and modular refineries into the national economy by addressing issues addressed herein in the Petroleum Industry Bill.
“This will be consistent with what is contained in the Minerals and Mining Act 2007, particularly Chapter VI.
“That the DPR should develop guidelines for licensing of mini refining operations, and prescribe graduated fees commensurate with the production capacity;
“To ensure National technical regulations and standards in the design, testing and construction of all critical infrastructure, as well as safety and compliance with all extant environmental laws, regulations and standards in the petroleum industry, are adhered to in all phases of the mini and modular refineries;
“That a special fund be set up by the Central Bank of Nigeria in collaboration with Sovereign Wealth Funds, Multi-lateral funds and the Federation Account as was done in the Power Sector reforms to address Modular and Artisanal refineries, and refunds be structured as was done in the power sector and Paris club funds.”
The summit resolved further that, “That relevant agencies of the Federal Government such as NNPC, PPPRA, NDDC, NASENI, PTDF, PEF, NCDMB, Presidential Amnesty Office, DPR, etc., who are stakeholders in the oil industry should each identify, mentor and sponsor at least one Pilot each of the mini refinery model developed in the country, as corporate social responsibility to the Nation;
“That the Government of each states should in accordance, just as the agencies of government and oil companies also mentor and establish at least one standard oil modular/mini refinery to make products available locally;
“That a technical team be set under the Ministry of Science and Technology and the Presidency, National Agency for Science, Engineering and Infrastructure (NASENI) to coordinate the team of experts and researchers to undertake field visits to mini refineries for the purpose of ascertaining the level of technological needs and standards and to recommend appropriate technologies for mini refiners;
“That the Petroleum Training Institute (PTI) Warri, Federal University of Petroleum Resources (FUPRE), Ahmadu Bello University, Zaria (ABU) and NASENI should be engaged and on their own engage the mini refinery operators on standard construction of modular and mini refineries which shall be subject to approval by Standard Organization of Nigeria (SON) and other relevant bodies before it is deployed for purchase by domestic artisanal refiners;
“That intervention agencies should be mandated to support, sponsor and fund training sensitization and orientation exercise for mini refining operators and fabricators/researchers;
“That waivers be granted from various government agencies and institutions in order to fast track the licensing process of modular and artisanal refineries in Nigeria;
“That individuals and organizations setting up or establishing refineries in the region should be encouraged to partner with local mini refiners for ease and smooth integration, knowledge sharing and technology transfer.”
Source: VANGUARD
