Private Refinery: 13 Companies Get Development Approval DPR Faults House Committee On Oil Block Awards

Orifice rippleThirteen corporations have to this point received Federal Government approval to commence construction of non-public refineries, greater than two years after they were initially granted preliminary licences.

Director of the Department of Petroleum Assets (DPR), Mr. Mac Ofurhie, who made this recognized yesterday in Lagos, faulted the report of the House of Representatives Committee on Petroleum Assets concerning the strategy of awards of oil blocks by the department.

Ofurhie mentioned that the thirteen firms, which he didn’t name, have been the ones that met the June 2004 extended deadline to fulfill pointers for approval to construct.

“We issued licences to 18 companies two years ago. They have been supposed by June this yr, to have been ready to start out construction. Out of the 18, only about 13 have been issued licence to start out development, that is, the second section,” mentioned Ofurhie.

The remaining five corporations, in response to the DPR boss, will have to await Federal Authorities’s decision whether to increase the deadline or not.

“There isn’t a indication that we will extend it for now. They are already late. however it may very well be reconsidered in future,” he stated.

The Petroleum Assets Ministry had in June 2002 given 18 companies preliminary licences. The companies embrace Akwa Ibom Refining and Petrochemicals Limited, Tonwei Refinery, Ilaje Refinery and Petrochemicals, NSP Refineries, Oil Companies Ltd, and Ode-Aye Refinery Ltd.

Others are Orient Petroleum Sources Ltd and Owena Oil and Gasoline Ltd., Southwest Refineries and Petrochemicals Company, Starex Petroleum Refinery Ltd, The Chasewood Consortium, Total Help Refineries and Union Atlantic Petroleum Ltd.

The private refineries had been to compliment the existing ailing four state-owned refineries, which regardless of having a mix manufacturing capacity of 445,000 barrels per day (bpd), remain unable to meet the nation’s petroleum merchandise demand.

Analysts have contended that rising local manufacturing of gas remained the only answer to the frequent hike in fuel prices.

The DPR chief also yesterday informed news males that the House Committee on Petroleum Assets goofed in its report on oil lifitngs, awards of blocks and the discharge of information on operations of the trade to the National Meeting.

The Committee chairman, Hon. Cairo Ojougbo, had in his report on the end result of the oversight features of the committee, acknowledged amongst others, that the DPR had failed to assist the committee with information and that it discovered an award of oil block to a hairdresser to the wife of a president. Ofurhie challenged Ojougbo to name the hairdresser or the oil block concerned. “I am unable to think about it. They did not even identify the block. In the event that they said the block, then we might have been ready to say yes, this block was given to a lady, whether or not she is a hairdresser we’d probably will not know. “Until we get an idea what block they had been referring to, I am unable to even hazzard a guess,” he stated. Ofurhie, however, mentioned the purported block might have been awarded below discretionary awards by past military regimes. “But this regime, since 1999 we never had any discretional allocation of blocks. We had one open block bidding that occurred in 2000.” “One of the key responsibilities of the DPR is the monitoring and supervision of crude oil manufacturing and export. Large Pressure Vessel On-site Tank It’s subsequently unimaginable that anybody who has not studied the procedure put in place can question, based on assumptions, the competence of the DPR to monitor crude oil export on the terminals or the processes put in place for similar. “When chosen members of the House of Representatives Committee on Petroleum Sources visited the Department as a part of their oversight obligations on Monday, October 18, 2004, we obliged them with all the data demanded and made presentations to them on our mode of operations and the personnel finances efficiency as at August 2004. “We explained that the Department’s personnel price allocations cover salaries and other personnel allowances, medical bills, Canteen companies, transfer benefits and different sundry expenditures as obtained within the NNPC (Nigeria National Petroleum Corporation). We also submitted all our personnel expenditure profiles from January – August 2004 to the committee as we had done to members of an identical committee from the Senate, who earlier visited for a similar train,” Ofurhie stated. In a associated development, authorities of the Nigeria-Sao Tome and Principe Joint Growth Authority (JDA) yesterday received a directive to begin processes resulting in the award of extra oil blocks out of the excellent eight blocks whose offer for tender was put ahead in April 2003. Talking on the opening of the 8th Joint Ministerial Council (JMC) Assembly yesterday in Abuja, Nigeria’s Minister of State for International Affairs, Alhaji Abubakar Tanko mentioned the Authority is being directed to give you the mandatory pointers for a value efficient and transparent system for the award of extra oil blocks in the Joint Growth Zone. “Aware of the fact that licensing just one block won’t generate the desired degree of exercise and income to the two governments, the JDA shall be directed to provide you with mandatory tips for a price effective and clear system for the award of extra blocks for the 2003 Licensing Round”, he stated. He described the 2-day council assembly as very essential as it might additionally take a final look on the negotiations of the Production Sharing Contract (PSC) which has been on in the previous couple of months. Other important points thought of by the ministers embrace matters relating to the smooth operating of the JDA and its activities and consideration of the processes for awarding additional oil blocks. The Minister observed that the JDA has in current occasions undergone some transformation, apparently referring to the modifications which led to the approaching on board of extra individuals to the Joint Ministerial Council as well as appointment of a new board for the authority. Tanko expressed confidence that with the calibre of the brand new members of the JMC and JDA board, they will all work assiduously to actualize the dreams and aspirations of the founding fathers of the undertaking. The leader of the Sao Tome delegation and the country’s Minister of Pure Resources and Environment, Engr. Arlindo Carlhvalo, said his team has thought-about all elements of the PSC for first oil block in readiness for the ultimate agreement. “Now we have analyzed issues relating to the final PSC agreement on the primary part of the bidding and is creating situations for the award of more oil blocks from the zone, which is of great significance to us”, he mentioned. Nigeria and Sao Tome and Principe signed a treaty on February 21, 2001 to jointly develop and handle the petroleum and natural assets within the JDZ. The signing of the treaty led to the inauguration of the board for the JDA on January 16, 2002 and since then, the JDA has been able to formulate tips on the fiscal regimes that may guide oil and gas operations within the zone. The announcement of the American oil firm, Chevron-Texaco, because the winner of the operatorship of the primary oil block in October 2003 formed a part of the high point of the Joint Improvement agreement.

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