Integrated Oil and Gas Ltd., an indigenous company has been licensed to commence preliminary work for the establishment of a 20,000 capacity modular refinery in one of the Islands on the coast of Lagos State.
The Chief Executive Officer, CEO, of the company, Capt. Emmanuel Ihenacho in Lagos yesterday revealed his company has been granted preliminary approval from the Department of Petroleum Resources, DPR, and has since commenced work on the Environmental Impact Assessment, EIA. He revealed further that the project will cost the company between $75 – $250 million adding that his company was making all the necessary ground preparations in order to secure a final approval for the refinery establishment.
Iheanacho, explaining the process leading up to the final approval and his source(s) of funds said; “If you go to the DPR website you will see all the terms and conditions for granting of refinery licenses. The DPR gives you license in stages, it gives you license to establish, license to construct and after that it gives you license to operate.
“DPR would not sit down and say let us go and do an EIA and after that they will give you license. They give you license based on the technology that is used for refining and your ability to give then very good presentation on that subject before they say alright go and start it.”
Iheanacho explained that the cost of establishing the refinery was will be based on the components produced, he said if the refinery will be constructed without the capacity to produce Petroleum Motor Spirit, PMS, Automated Gas Oil, AGO and the like, the cost would be around $75 million, whereas if those components are included, the cost would shoot up to as much as $200 million.
He explained that his company’s management has met to hold meetings with several of the traditional rulers in the area to secure host community’s consent while adding that contrary to rumours, the refinery construction is yet to begin, he said; “We have not even started construction by the way; we are just going through the pre-application process.
“I am ready to stand by the truth and what is right at all times. I am not the one to go and appropriate property to build a refinery. I am not going to put my hands in your pocket and force money out of it. I am not going to force you to tell me what you do not know about building refineries. Refineries are very important infrastructure in the country and it will enhance the image and prestige of the country.
“If I think that I can articulate a business plan that I can take to the bank and they would then lend me money to build the refinery, while will I not do it? I do not want anybody to be deceived or fooled by fake or funny stories,”.