FG Targets 46b bpd Strategic Reserves

The Oil Services Department, Ministry of Petroleum Resources is seeking an increase of the national strategic reserve to 46 billion barrel per day of crude oil by  2025, it was learnt yesterday.

 It also sought the improvement of crude oil production to three million per day through huge investment across the value chain and deployment of improved technology.

This was contained in the memorandum that the department submitted to the 4th National Council on Hydrocarbons held in Abuja.

The report on the technical session which The Nation obtained from the council, also noted that the Petroleum Equalisation Fund (PEF)  sought the approval of the Federal Executive Council (FEC) for the establishment of a National Hydrocarbon Fund to be managed by the PEF management board.

In its memorandum, the Federal Ministry of Science and Technology, called on the Federal Government to allocate marginal field for the establishment of 1,000 barrel per day modular refinery.

It also sought support for the ministry to coordinate the modular refinery pilot scheme in collaboration with the ministry, Department of Petroleum Resources (DPR), the Nigerian National Petroleum Corporation (NNPC), government of oil producing states and other relevant stakeholders.

Meanwhile, the Acting Permanent Secretary, Ministry of Petroleum Resources, Engr. Busari Kamoru, who presented the report on the memoranda, asked the Ministry of Science and Technology to work in collaboration with the DPR for the acquisition of the marginal field for the modular refinery.

The Ministry of Science and Technology had predicated its request for building the pilot modular refinery on the fact that the country was still facing acute shortage of refined petroleum products in spite of abundance of deposit of hydrocarbons in Nigeria.

It also posited that “the five existing refineries in the country which were built by foreigners have suffered from pipeline vandalism, oil bunkering/theft’ dilapidation, low production etc.”

The FMST also sought the council’s support for the utilisation of refinery flared gases emitted to drive Quint as locally manufactured steam communities of flow stations and refineries.

It told the council that “in order to augment the insufficiency experienced in Nigeria’s power situation, viable renewable off-grid, high local content, energy solution investments should be encouraged to minimise the present hugh investment cost of electricity generation in the country and optimise the gains.”

The FMST prayed that the council grants it permission for siting of the pilot steam power plant within the confines of the refineries and flow stations.

The ministry also sought the council’s permission for the connection to flare columns for the diversion of flared gases to the pilot steam power stations.

On the whole, 18 memoranda were presented for consideration from different departments and agencies in the relevant ministries.

In his goodwill message, the Senior Special Adviser to President Buhari, Senator Ita Enang called on the council to consider the facts that oil communities were still suffering deprivation while oil companies were still adamant at giving attentions to their plights.

He urged the council to see to the integration of artisanal refiners into conventional ones in order to contain the challenges in the Niger Delta region.