Adedapo Adesanya
By Adedapo Adesanya
The federal government has said that the integration of artisanal and modular refinery operators into the mainstream oil and gas sector will drive the inclusion of more local content in the industry while advancing the use of home-grown technology in the refining of petroleum products.
This was disclosed by Vice President, Mr Yemi Osinbajo, on Tuesday in a virtual address delivered at a national summit on the Integration of Artisanal and Modular Refinery Operations in Nigeria, convened by the Senior Special Assistant to the President on Niger Delta Affairs, Mr Ita Enang.
The Vice President explained that the integration of artisanal refiners will curb environmental issues in the Niger Delta, promote the availability of petroleum products, stabilize prices, eliminate shipping costs and provide employment opportunities for the people.
“We are confident that the integration of artisanal and modular refinery operations into the oil and gas sector will not only promote the inclusion of more local content in the industry; it will advance the use of home-grown technology in the refining of petroleum products and also curtail illegal oil activities in the Niger Delta region,” he said.
Mr Osinbajo had in 2016 toured oil-producing communities in the Niger Delta as part of the new administration’s bid to address lingering issues in the region.
“One of the nagging issues we were confronted with during my tour was how to deal with the proliferation of artisanal refinery and its attendant negative environmental impact. Our solution was to promote the establishment of modular refineries,” Prof. Osinbajo recollected.
Speaking on how to resolve the issue, the Vice President noted that artisanal refiners will be seen as investors and considered for strategic equity partnerships with technical and financial partners.
“This vision is hinged on the commitment of this present administration to develop the region and ensure that the people of the region benefit maximally from the wealth of their land. Indeed, the New Vision speaks to a progressive partnership between the federal government, state government, private sector, and the local communities,” he stated.
Explaining the federal government’s position on the adoption of a viable model, Mr Osinbajo said the transition from artisanal refineries to modular refineries has been delayed because of the operators’ expectation that the process will be fully underwritten by the government.
“However, what this framework envisages is a private sector-led partnership with equity participation from the state government or its agencies, registered local cooperative societies and the integration of regional refinery stakeholders, with the private investor having majority equity.”
While calling on stakeholders at the summit, to fashion a workable and viable blueprint that will guide and facilitate the integration of artisanal and modular refinery operators, the Vice President said the gains of a seamless integration were enormous.
“We are confident that the integration of artisanal and modular refinery operations into the oil and gas sector will curtail illegal oil activities in the Niger Delta regions.
“It will also promote the availability of petroleum products, stabilize prices, eliminate shipping costs and provide employment opportunities for the youths in the region and Nigeria in general.
“We recognize that with enough artisanal and modular refineries in the country, we should be able to conserve foreign exchange now utilized for the importation of petroleum products and promote socio-economic development.
“The resultant proliferation of employment opportunities will also have the effect of curbing youth restiveness which is largely driven by a dearth of socioeconomic opportunity. With most of the youth engaged in productive endeavours, the region will be able to turn a new page in its history.”
