In a statement released over the weekend, the Department of Petroleum Resources (DPR), has disclosed that it issued 21 licences to investors to establish new refineries in the country, adding that four investors had earlier been issued licences to construct new plants in the country.
"There are currently 25 private refinery licences granted to companies with 21 in the Licence to Establish, LTE, category, while four are in the Approval to Construct, ATC, category," the statement said.
According to the agency, three out of the 25 licensed companies are billed to construct conventional stick-build plants, while 22 will construct modular units with a proposed combined refining capacity of 1,429,000bpd.
The statement noted that DPR has not withdrawn the licence of any private refinery. It disclosed that rather, it is in alignment with the Federal Government’s aspiration of improving the country’s refining capacity by strengthening its regulatory oversight function. DPR said that in line with its commitment to entrench transparency in oil and gas regulatory function, it has to make some clarifications.
"There are three stages of licencing for establishment of private refineries in Nigeria, namely; Licence to Establish, Approval to Construct and Licence to Operate, LTO.
"DPR granted LTE to 21 companies with a validity period of 18 months in 2002. In 2004, 17 out of the earlier granted LTE were granted ATC for a 24 month validity period.
"The Department in 2007 reviewed the existing guidelines and a new guiding document ‘Guidelines for the Establishment of Hydrocarbon Processing Plants in Nigeria’ was introduced to ensure that only committed investors were licenced," the statement added.
Meanwhile, the fuel scarcity, which showed improvement last week, has worsened in Lagos and other parts of the country as operators cashed in on the situation to sell fuel at exorbitant prices, ranging between N100 and N300 per liter.
Executive Director, Spaces for Change, Mrs. Victoria Ohaeri said the situation in Nigeria at the moment was far from ideal with no fuel, electricity and water, compounded by scorching heat, rising food and transportation prices.
"The majority of filling stations are under lock and key, while the few dispensing fuel have unilaterally hiked the pump price from the official rate of N86.50 to between N100 and N150 per litre.
"The organisation observed that with the economy in tatters, and Naira values falling like a house of cards, families-particularly female-headed households-live under pressure, as job losses mount, school fees skyrocket and housing rental costs soar," she said.
She maintained that beyond the far-from-ideal situation, the greatest source of worry to many is that there is no projection of its end in sight.
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