Executive Summary
Nigeria
is the top ten country in the world with highest oil reserve and the second in
Africa after Libya. With 37 billion bbls proven oil reserve and current
consumption level, the s abundant oil resources can be utilized for about 237
years excluding future possible oil discoveries in the country to support the
nation growth.
Leading
global oil and gas producers are operating in Nigeria including Shell,
ExxonMobil, Chevron, Total and Agip. Unfortunately, the country is heavily
relied on imported refined petroleum products. Total import of refined
petroleum products was amounted to USD
11.3 billion in 2021 or equal to about 436,000 bopd. These companies combine
production are equal to about 95% of the country’s total oil production.
|
Refinery |
Location |
Notes |
Nameplate Capacity (barrels per day) |
|
Kaduna
refinery |
Kaduna state |
crude sourced from Escravos and Forcados terminals |
110,000 |
|
Port
Harcourt refinery I and refinery II |
Rivers state |
crude sourced from Escravos terminal |
210,000 |
|
Warri
refinery |
Delta state |
crude sourced from Bonny terminal |
125,000 |
|
Dangote
refinery |
Lagos state |
commissioning expected by end-2023 |
650,000 |
|
Total |
|
|
1,095,000 |
The
three refineries: Kaduna, Port Harcourt and Warri are currently being revamped
by the government to bring back the capacity to close to its nameplate capacity
from current actual capacity of about only 30%.
Lack
of infrastructure, uncertainties in regulations, and security concerns have led
Nigeria to underutilize its refining capacities, thereby pushing the country to
become a net importer of refined petroleum products. However, Nigeria is on the
edge of altering refined products’ supply dynamics in the region with the help
of the upcoming Dangote Refinery, and it is expected to become the regional
refining hub in the coming years. Once completed, the country is planning to
become the refinery hub in Africa. This, in turn, is expected to attract
foreign players to tap into the country's downstream market, creating several
opportunities in the future.
We
have run preliminary economic analysis to understand the potential of refinery
business in Nigeria with result is shown here. We think that there is high
possibility that we can take some benefit from this opportunity.
|
Project IRR |
19% |
|
NPV (thousand USD) |
3,941,063 |
|
Payback (year) |
9.28 |
|
Payback Since Production |
4.28 |
About The Company
[Company
xxx] develops investments and runs business related to processing oil and
natural gas and other materials into high-value fuel, lubrication and
petrochemical products as well as developing processing and petrochemical
businesses in order to meet the needs of refined and petrochemical products
according to market developments in Nigeria and Africa. We incorporate
state-of-the-art technologies to operate our oil refinery that will result in
the most efficient and effective way.
Vision:
Nigeria's
Leading and Preferred Oil Refining and Petrochemical Company
Mission:
To increase our position
through integration, development of human capital and preferred partnership, in
a sustainable manner that will contribute to the growth of Nigeria and Pan
Africa
Our
company believes that petroleum products still significantly important to
support the economic growth of the nations. By delivering petroleum products
that make people move we are contributing in Nigeria’s economic growth and help
support domestic energy security and to be energy independent. At the same time
we are assisting the country in reducing the oil trade deficit.
By
implementing state-of-the-art technologies to operate our refinery, we are
initiating our role in the future energy transition. Efficient processes will
result in energy efficiency and also reduce carbon to preserve the world. We
will be actively involved in downstream business in Nigeria and ready to
support the country to reach its goal becoming the refining hub in Africa.
Transformation
is what’s needed in today’s uncertain climate. It’s the only path to elevating
financial performance, building capabilities and changing culture in ways that
will sustain them in the years ahead.
We
have been experiencing the fluctuation of oil prices and also negative oil
price back in 2020. We can learn from those experiences and set up strategies
for a better future. Let’s produce and deliver energy for the better future!
Figure
1. Crude refinery capacity worldwide in 2010 and 2021, by major country
(Source:
Statista)
Figure
2. Oil Refinery Capacity in Selected African Countries in 2021, in thousand
bopd
(Source: Statista)
Figure
3. Export Volume of Petroleum Products from Africa in 2021, in thousand bopd
(Source:
Statista)
Figure
11. Schematic Refining Processes
(Source:
Internal)
|
Crude Feed Stock ('000 Bbls / day) |
|
|
300 |
|
Bonny Light |
|
|
100 |
|
Qua Iboe |
|
|
100 |
|
Escravos |
|
|
100 |
|
Total Feedstock Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fuel Products ('000 Bbls /
day) |
|
|
295 |
|
C3 |
|
|
6 |
|
C4 |
|
|
1 |
|
Gasoline Ron 92 |
|
|
115 |
|
Gasoline Ron 95 |
|
|
29 |
|
Jet Fuel / Kerosene |
|
|
3 |
|
Diesel |
|
|
141 |
|
|
|
|
|
|
|
|
|
|
|
Total Petrochemical Products ('000
Bbls / day) |
|
|
12 |
|
Benzene |
|
|
|
|
P-Xylene |
|
|
|
|
Butadine |
|
|
|
|
Poly Propylene |
|
|
8 |
|
Poly Ethylene HDPE |
|
|
|
|
MEG |
|
|
|
|
DEG |
|
|
|
|
Sulphur |
|
|
4 |
Comments
Post a Comment