By Emeka Ugwuanyi
All is set for the expansion of the refining capacity of Waltersmith Refinery in Ibigwe, Ohaji-Egbema Local Government Area of Imo State from its current 5,000 barrels of oil per day (bopd) to 10,000 bopd in the next 18 months.
The Chairman of Waltersmith Group, Mr. Abdulrazaq Isa, disclosed this at the ongoing 12th edition of Practical Nigerian Content (PNC) Forum in Yenagoa, Bayelsa State. According to him, apart from helping in bridging refining capacity gap in the country, the refinery has been able to pay dividends to its commercial venture partner – the Nigerian Content Development and Monitoring Board (NCDMB).
Isa said: “Last year at PNC, I spoke about the role NCDMB has played as a proactive business enabling regulator with collaboration on the phenomenally successful 5,000 barrels per day Waltersmith modular refinery in Ibigwe which commenced operations in November 2020.
“Today, as I projected last year, the refinery has delivered its first dividend payment to NCDMB, paid off a significant portion of its project financing and commenced an expansion phase designed to double refinery’s capacity to 10,000 barrels per day in the next eighteen months.
“NCDMB’s commercial ventures partnership programme continues to stimulate investment and promote in-country capacity. It is clear the Government’s effort in deepening local content in the Nigerian oil and gas industry is paying dividends and it is imperative that this effort is sustained with greater focus placed on bridging inherent capacity gaps; addressing infrastructural inadequacy and capital deficiency plaguing the industry at the moment in order to optimally derive the full benefits of the local content policy.”
“While we proudly recognize the major role that local content implementation has played in advancing our oil and gas sector, we must also be mindful of ensuring that our local content policies are constantly evaluated to ensure that they are continually fit-for-purpose and not counter-productive to our long-term industry growth and cost targets. Our industry continues to face growing pressures to remain profitable and cost-efficient as it faces competition from other investment destinations.”
Meanwhile, he stated that the PNC has always provided a viable platform for demonstrating the successes recorded in deepening Nigerian Content and fostering industry-wide collaboration in delivering the key tenets of the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act). I must, therefore, specially commend the Nigerian Content Development and Monitoring Board (NCDMB), under the able leadership of Engr. Simbi Wabote, for once again convening this event.
PNC, he noted, will always be a special one for IPPG – as an association of twenty-nine indigenous Exploration and Production companies, there is a natural synergy between the NCDMB and IPPG. The emergence of IPPG and strong indigenous Exploration and Production companies is a testament to thesuccessful local content policy.
“From the theme of this year’s conference, it is clear that a lot is happening in our industry – “Deepening Nigerian Content Amidst Divestments, Domestication & Decarbonisation” – our industry is witnessing atransformational shift and thus continues to underscore the importance of re-positioning our industry in the short to medium term. The ongoing global energy transition drive as well as the widespread reforms across the domestic landscape – notably the implementation of the Petroleum Industry Act, the ongoing divestment of onshore and shallow water assets by the IOCs and the Decade of Gas Initiative – means exciting times are on the horizon for the industry bringing with it immense opportunities for growth. As an industry we must remain focused on rapidly and efficiently exploiting our vast hydrocarbon assets for the socio-economic transformation of the nation.
“It is, therefore, imperative for the industry to be efficient and look inwards in fully optimising these hydrocarbon assets for today and future generations. The faithful implementation of the NOGICD Act is capable of unlocking the nation’s economic potential and serving as an enabler for rapid industrialisation.
“The acceleration of in-country capacity utilisation, reduction of capital flight and in-country retention of a significant portion of industry spend will no doubt continue to expand the participation of the indigenous companies across the industry value chain and create linkages to the wider economy,” he added.
