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Nigeria: DPR – Moribund Facilities Limiting Domestic Refining

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The Department of Petroleum Resources (DPR), has said moribund oil and gas facilities across the country would limit domestic refining capacity and hinder projected benefits and revenues.

A statement from the organisation stated that DPR Director, Mr Sarki Auwalu, made the comment during a visit to a fabrication yard located at Ilase Village, Snake Island, Lagos State.

He insisted that the federal government was, however, committed to reactivating the moribund oil and gas support facilities across the country, adding that the move was part of the government’s effort to increase domestic refining capacity and gas utilisation to curb unemployment and poverty in Nigeria.

Auwalu expressed dissatisfaction that the facility which was licensed to provide oil and gas service had not been operational since 2015 due to contractual issues and expressed worry that the critical equipment in the facility was currently not being utilised for the benefit of Nigeria and Nigerians.

He said: “The industry depends on facilities like this to actualise its investment because it is like a support system for the oil and gas sector. Our visit is to the edifice that we licensed and it is dormant. But we are going to make it active because we see it as an opportunity to grow the oil and gas industry.

“We have seen an opportunity we can use to support our gas utilisation, penetration and expansion programme. We have issued several licenses for modular refineries that need fabrications. We cannot allow this kind of facility to remain under-utilised.”