Library / [Type text] May 2017 GENERAL REQUIREMENTS AND GUIDANCE INFORMATION FOR THE ESTABLISHMENT OF

[Type text] May 2017 GENERAL REQUIREMENTS AND GUIDANCE INFORMATION FOR THE ESTABLISHMENT OF

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GENERAL REQUIREMENTS AND GUIDANCE INFORMATION FOR THE ESTABLISHMENT OF
MODULAR REFINERIES IN NIGERIA

1. Introduction
As part of the strategy to reposition the Nigeria Oil & Gas industry, a roadmap of short and
medium term priorities aimed at developing a stable and enabling Oil and Gas landscape with
improved transparency, efficiency, stable investment climate and a well-protected environment,
tagged “7big wins” was developed and launched by His Excellency, Mr. President in October
2016.
The fourth initiative in the roadmap, “Refineries and Local Production Capacity” seeks to transit
Nigeria from being an import dependent Nation into a net exporter of refined petroleum products.
Thus, presenting huge investment opportunities in the mid - downstream sector that will result in
GDP growth and jobs creation.
A key component of this initiative is Government support for the establishment of third party
financed Greenfield and modular refineries for in-country petroleum products sufficiency that will
stimulate products export.
It is the intention of government that the refineries should be scalable and located within refinery
clusters for effective operations and minimal environmental footprint.
This document therefore highlights essential guidance information, some important general and
technical requirements for interested investors in refineries to enable smooth implementation of
the initiative.
2. Key Objectives of the Modular Refinery Initiative

•
To promote availability of petroleum products in the country.
•
To conserve foreign exchange utilization for the importation of Petroleum Products.
•
To promote socio economic development in order to stop restiveness, criminal and illegal
refinery activities thereby sustaining peaceful coexistence in the Niger Delta Region
•
To mitigate and eliminate environmental degradation associated with illegal refinery
activities, crude oil theft and pipelines vandalism
3. Legal Framework
The process for establishing a Petroleum Refinery in Nigeria is regulated by the Department of
Petroleum Resources (DPR) through Polices and Regulations promulgated by the Ministry of
Petroleum Resources and Minister of Petroleum Resources respectively. The regulatory procedure
is laid out pursuant to Regulation (2) and (3) of the Petroleum Refining Regulations (PRR) of 1974
made under section 9 of the Petroleum Act 1969. Furthermore, under Regulation 47 of the PRR, the
Director, Petroleum Resources may from time to time, give directions as to the manner of
compliance with any matter provided for under the PRR regulations.
Consequently, DPR has concluded the review of the guidelines that shall apply for the
establishment of Hydrocarbon Processing Plants and also issued an addendum “Supplementary
guidelines for the Design, Construction and Operation of Modular (mini) Refinery Plants in Nigeria”
which details mandatory requirements, processes and procedures that will significantly simplify
compliance.

4. Scope
The guidelines shall cover all refinery establishment. However, establishment of modular refinery
plants, shall be with design capacity not more than thirty thousand barrels per day (30,000BPD).