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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When the plant capacity exceeds 30,000BPD, the plant shall be upgraded to a full conventional
refinery.

5. Location and Carrying Capacity
The location of a modular refinery shall be strategic and influenced by proximity to the source of
crude oil, producing marginal fields and tie-in to supply infrastructure or clusters
Government also recognizes that there is a limit on the carrying - capacity in each of the oil
producing states, consequently, establishments would be based on the acceptable carrying
capacity indices of each state which is determined by the production capacity, access to
infrastructure and limit of the environmental degradation.

6. Modular Refinery Business Model
Government envisages amongst others, a model that will be private-sector led partnership with
equity participation from the state government or its agencies, registered local cooperative
societies and the integration of the regional refinery stakeholders, with the private investor having
majority equity as well as operate the Joint Venture.
State Government contribution could be in the form of land-for-equity and or paid off shares.

7. Investors Category

The Federal Government seeks the participation of credible investors and integration of key
stakeholders in the modular Refinery initiative. The size of the investment structure will determine
significantly the investor categorization and selection process.
The prospective investors will be categorized as follows:
A. Private Investor with financial and technical capacity, preferably with established Nigerian
presence or partnership
B. Public-Private Partnership with credible participation from relevant stakeholders such as
foreign technical partners, State Government, MDAs, Local Govt. Council, organized
private organizations, cooperative societies, community equity contribution etc.
C. Regional refinery stakeholders involved in artisanal activities with focus to converting the
vocationally acquired skills to cognitive technical skills. They shall be considered for equity
partnership with technical and financial partners.

8. Qualification Requirements
A sustainable and transparent framework is provided for the selection of potential investors, and
shall take cognizance of the existing guidelines and objectives of the Refinery Expansion plan.
The licensing processes as prescribed in the guidelines for the establishment of Hydrocarbon
Processing Plant in Nigeria by Department of Petroleum Resources (DPR) are in three phases
namely
(a) License to Establish (LTE),
(b) Authority to Construct (ATC)
(c) License to Operate (LTO).
To qualify and move between phases requires certain criteria to be satisfied. Section 9 and 10 of
this document presents some of the key general and technical criteria which interested investors
must satisfy.