Waltersmith Petroman Oil has announced a US$40mn investment plan to set up a 5,000 bpd refinery in Nigeria

A company statement said that evaluation for the feasibility of the project had been ongoing and there were plans to bring it on stream before the end of 2013.

Waltersmith chairman and CEO, Abdulrazaq Isa, said that the proposed refinery would produce jet A-1 fuel (aviation fuel) and automated gas oil (diesel).

Isa added that the company also has plans to provide an alternative income stream due to the frequent disruption in export schedules caused by the vandalisation of pipelines in the Niger Delta region.

The chief executive revealed that the company would rely on indigenous banks to finance the refinery.

Isa said, “Nigerian banks can support us with the money needed to bring the refinery on stream. The US$40mn can be sourced from local banks because of the earlier records of the team.

“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.”

Isa added that the company had completed the first phase of the Ibigwe field development with investment of about US$180mn into a five-well drilling project, one workover campaign and a 15,000 bpd low station.

 

Source : abdas.org