Lagos — An indigenous oil company, Waltersmith Petroman Oil Limited has announced a $40 million investment for a 5000 barrels per day refinery in the country.
It said evaluation of the feasibility project is in top gear and there are hopes to bring it on stream before the end of the year.
Chairman and Chief Executive Officer of the company, Mr.Abdulrazaq Isa, said the proposed refinery will produce jet A-1 fuel (aviation fuel) and Automated Gas Oil (otherwise called diesel.)
Mr. Isa said the company plans to provide alternative income stream especially in the wake of frequent disruption in export schedules caused by the vandalisation of pipelines in the Niger Delta area of the country.
He said the company would rely on indigenous banks to finance the refinery as well as commitment from the company's staff.
"Nigerian banks can support us with the money needed to bring the refinery on stream. The $40million is still manageable and can be sourced from local banks because of the integrity and records of the team on the company. We will focus on the segment of the market that is deregulated and whose return would ginger the banks to show interest in financing the project," he said.
Isa also said his company has completed the first phase of the Ibigwe field development with investment of about $180 million in a five well drilling, one workover campaign and 15,000 barrels per day low station.
via Daily Trust