INVESTMENT OPPORTUNITY FOR TODAY 1: ESTABLISHING A MINI REFINERY AND PORTABLE CRUDE OIL DISTILLATION PLANT IN NIGERIA Nigeria has for long been a major producer of crude oil ever since the first commercial well was drilled in Oloibiri in present day Bayelsa state. The country presently has an estimated 35.3 billion barrels of hydrocarbonboth onshore and offshore assets mostly domiciled in the Niger Delta basin. Nigerias hydrocarbonis classified mostly as light and sweet, as the oil is largely free of sulphur. Nigeria is the largest producer of sweet oil in OPEC, the organization for petroleum exporting countries.This sweet oil is similar in composition to petroleum extracted from the North Sea. This crude oil is known as Bonny light. Names of other Nigerian crudes, all of which are named according to export terminal, are Qua Ibo, Escravos blend, Brass rivers, Forcados, and Pennington Anfan. Investment opportunities in the oil and gas industry in Nigeria can be stratified along three categories namely the up-stream, middle stream and down-stream sectors.While the middle-stream and downstream sectors as to do with importation,storage and marketing of refined petroleum products,the upstream sector is devoted to the exploration ,production and refining of hydrocarbons. For far too long the nation has been dependant on importation of refined petroleum products due to the fact the four crude oil refinery in Nigeria cannot meet the local demand for the product which currently stands at an estimated sixty million {60,000,000} liters of refined petroleum products {PMS, DPK and AGO} per day. Really there has never been a doubt about the large size of the Nigeria market for the refined petroleum products which is one of the largest in Africa; the problem has been that of government policy and regulation. The idea of using subsidy to augment the retail price of refined petroleum products in Nigeria though a good initiative encourages the importation of the product than local refining of the product. In view of the recent ban on subsidy, the coast is now clear for savvy investors to the opportunity and invests the local refining of hydrocarbon in Nigeria hence the need for this article to raise awareness about the opportunity. The Mini Refinery & Portable Crude Oil Distillation Plant is capable of processing from 2,000 Barrels Per Day (BPD) of any stream of Light or Heavy Crude Oil within API Gravity of 29°- 42.8°, into Naphtha, Diesel, Kerosene and Fuel Oil. Mini Refineries are ideally suited for remote locations and are viable for Investments by Private and Public Sector Groups as a source of rapid production of primary fuel products and raw materials for Petrochemical Downstream Industries. The investor can apply for oil block allocation or partner with government at different level on a PPP basis to guarantee investment and feedstock for the production plant. Establishing a crude oil refinery requires approval from the department of petroleum resources, the petroleum regulatory organisation in Nigeria. FOR FURTHER INFO/ FEASIBILITY STUDY, CALL 234-8160209243.
Posted on: Sat, 13 Dec 2014 09:31:46 +0000
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