Nigerian Refinery Achieves New Feat One Year After Commencing Diesel, Other Fuel Production

Nigerian Refinery Achieves New Feat One Year After Commencing Diesel, Other Fuel Production

  • Three companies in Edo State, Dufil Prima Foods, Edo Refinery, and Don Mac Limited, have obtained pioneer status incentives
  • Last year, the Edo Modular Refinery began production at its 6,000bpd plant in Ologbo, Ikpoba Okha local government
  • With its feedstock, the plant can generate 20% of Low Pour Fuel Oil (LPFO), 25% of naphtha and 50% of diesel

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

Leading Edo state manufacturers, such as Dufil Prima Foods, Edo Refinery, and Don Mac Limited, have obtained pioneer status incentives to boost their investments in the state.

These investments, valued at over N205 billion, are a result of reforms implemented by Governor Godwin Obaseki's administration.

Nigeria’s refinery gets new investment
The Obaseki-led administration has implemented a strong investment promotion strategy. Photo Credit: Edo Govt, Natnan Srisuwan
Source: UGC

The development comes after the Edo state government-backed Edo modular refinery began production at its 6,000bpd plant in Ologbo, Ikpoba Okha local government area last year

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The facility, with its feedstock, can produce 50% diesel (500,000 litres), 25% naphtha (300,000 litres), and 20% Low-Pour Fuel Oil (LPFO) (200,000 litres).

Strong investment promotion

Over the past seven years, the Obaseki-led administration has implemented a strong investment promotion strategy that has drawn several manufacturing companies to the state, increasing productivity and broadening the state's industrial base.

ThisDay reported that the Nigerian Investment Promotion Commission (NIPC) provided the manufacturers with incentives to take advantage of waivers to grow their businesses.

Six Edo state enterprises were included on the longlist of businesses with active applications in an announcement on the Pioneer Status Incentives Application for Quarter One, January to March, 2024.

NIPC stated:

“In compliance with the requirements of the Industrial Development (Income Tax Relief) Act Cap I7, Laws of the Federation of Nigeria 2004 and the Pioneer Status (Delegation of Certain Statutory Functions) Order of 2017, Nigerian Investment Promotion Commission (NIPC) is pleased to provide details of Pioneer Status Incentive (PSI) applications processed between 01 January and 31 March 2024.”

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Dufil Prima Foods Plc was the most recent application to be approved, and approval was granted for a three-year term beginning on January 1, 2024, and ending on December 31, 2026.

Refineries get crude oil

Legit.ng had reported that Decklar Resources Inc. and its partner, Millennium Oil & Gas Company Limited, operators of the Oza Oil Field, disclosed they have delivered 75,500 barrels of crude to two modular refineries in Edo state.

The facilities are the Edo Refinery and Petrochemical Company (ERPC) in Ologbo, Ikpoba Okha local government area, and the Duport Midstream Company Limited (DMCL) facility in Egbokor, Orhionmwon LGA in the state.

According to Decklar Resources' chief executive officer, Sanmi Famuyide, the deliveries are part of the deals with the two oil facilities for the supply of crude for refining.

The refinery was financed through the provision of an investment guarantee by Obaseki’s government, which made way for the construction of the refining facility, opening up the petroleum refining sub-sector in the state.

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Port Harcourt refinery begins test-run

Legit.ng also reported that Port Harcourt Refining Company Limited would begin test-running after receiving the crude oil supply from the Nigerian National Petroleum Company Limited (NNPCL).

Oil marketers, who confirmed the development to Punch, said the plant would supply refined Premium Motor Spirit (petrol), Automotive Gas Oil (diesel), and other products.

They said the products would be distributed to 12 states, including Abia, Rivers, Akwa Ibom, and Delta.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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