In an exciting development for the Nigerian oil sector, Abdulrazaq Isa, the Chief Executive Officer of Waltersmith Petroman Oil Limited, has announced the projected completion of the Waltersmith Modular Refinery expansion by the second quarter of 2025 (Q2/2025). This revelation was made during a press briefing on Tuesday, November 21, as Isa provided insights into the company’s progress and future plans.
The occasion saw Waltersmith Petroman Oil Limited playing host to Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, who toured the 5,000 barrels per day Waltersmith Modular Refinery located in Ohaji-Egbema, Imo state. Isa took the opportunity to underscore the efficient management of the refinery and the increasing demand for its products nationwide. Despite the successful export of some products to regions like Sokoto state, Isa emphasized the pressing need for expansion to meet the growing demand adequately.
Isa elucidated on the current operational limitations, stating, “It is very obvious to us that the capacity we have is so limited, and we need to ramp up the capacity.” He further outlined the company’s dedication to concluding the next phase of expansion by Q2/2025, coinciding with the anticipated finalization of negotiations regarding the condensate’s feedstock.
The Waltersmith modular refinery, a collaborative effort with the Nigerian Content Development and Monitoring Board (NCDMB), stands as a testament to successful indigenous initiatives in the oil and gas sector. Situated near the Ibigwe marginal field flow station, the refinery has garnered praise for its significant contributions to the production of various petroleum products.
During the inspection of the expansion project, Minister Lokpobiri expressed confidence in the refinery’s management and assured the government’s unwavering support for the company’s needs. He reiterated his commitment to facilitating the completion of the Port Harcourt refinery by the Nigerian National Petroleum Company Limited (NNPCL), originally slated for December 2023.
Simbi Wabote, the Executive Secretary of the NCDMB, lauded the Waltersmith Modular Refinery as a success story, citing its production of nearly 600 million liters of diverse petroleum products. Highlighting the refinery’s impact on the market, Wabote revealed that approximately 20 trucks loaded with petroleum products leave the facility daily.
The significance of this expansion project was further underscored by the presence of Olasupo Olusi, the Chief Executive Officer of the Bank of Industry, during the inspection. Olusi emphasized the crucial role of providing additional support to the modular refinery, asserting that such assistance would contribute to stabilizing the oil sector, managing inflation, and effectively addressing fiscal pressures.
In a broader context, the development aligns with recent regulatory measures in the Nigerian oil industry. On November 1, 2023, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) declared its commitment to enforcing crude supply obligations to local refineries. This commitment is rooted in Section 109 of the Petroleum Industry Act (PIA) of 2021, which mandates the NUPRC to allocate domestic crude oil supply obligations based on the National Crude Oil demand requirement supply curve to respective lessees.
In light of this commitment, the NUPRC urged crude oil producers to consistently provide details on their committed and uncommitted barrels. This move aims to ensure the fulfillment of domestic crude oil supply requirements, as outlined in the PIA, and to guarantee an ample provision of crude oil to local and modular refineries.
As Waltersmith Petroman Oil Limited navigates the pathway to expanding its modular refinery, the industry watches with anticipation, recognizing the potential impact on national energy security, economic stability, and the broader objectives of the Nigerian oil and gas sector. The collaboration between government bodies, regulatory agencies, and industry players reflects a concerted effort to strengthen the indigenous capacity of the oil industry and drive sustainable growth in Nigeria’s energy landscape.
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