The Department of Petroleum Resources has announced its readiness to release the guidelines for the establishment of modular refineries in the country, with the aim of shortening the approval time for licensing of refineries.

It also said that the Federal Government was working towards refining 50 per cent of the country’s crude oil locally.

The bulk of the refined petroleum products is imported as the country’s four refineries are working below their respective installed capacities.

The Deputy Director, Engineering and Standards, DPR, Mr. Alfred Ohiani, said the new guidelines would reflect the processes for the issuance of licences, which would span a period of 12 months.

He spoke at a sensitisation workshop in Abuja on the modular refineries initiative.

Ohiani stated that the Federal Government was working towards ensuring that 50 per cent of Nigeria’s crude oil production was refined locally.

He expressed optimism that the target of increased refining capacity would be achieved with modular refineries, adding, that the licensing fee would remain at $50,000.

According to him, a modular refinery, valued at between $1m and $15m depending on the capacity, will squeeze out value from stranded hydrocarbon in remote locations and marginal fields to enhance resource utilisation and spur economic activities.

“To facilitate the process of setting up modular refineries, the DPR will pre-qualify a number of original equipment manufacturers thereby eliminating/minimising the process of verification of engineering,” Ohiani said.

He added that several vendors and suppliers of modular refineries available worldwide had approached the DPR, adding that the OEMs would be evaluated, pre-qualified and recommended to partner with the Federal Government on the modular refinery initiative.

He stated that the decision to pre-qualify the original manufacturers of modular refineries was to facilitate the process of licensing and plant establishment.