Firm to establish $10bn refinery in Bayelsa

20 September 2012, Sweetcrude, LAGOS – A NIGERIAN firm, Epic Refinery and Petrochemicals Company Nigeria Limited, in conjunction with its foreign partners, Sino Asia Energy Company Limited, is set to commence construction of a $10 billion refinery with a daily production capacity of 100,000 barrels at Oporoma, Bayelsa State.

Disclosing this in Lagos, Managing Director of Epic refinery, Sir Barango Mathew Wenke Jr., said that preliminary work at the 1,000 hectares of land has already commenced, awaiting approval from the Department of Petroleum Resources, DPR, for actual construction to begin.

The Epic refinery boss while making a presentation to DPR for license consideration for the refinery, noted that they have put all necessary machinery in place to complete the construction work on the refinery 24 months from the date they get their license from DPR.

He explained that while SAE Group is expected to carry out the construction work, the HSBC Global, will be providing the needed funds. According to Wenke, HSBC will provide additional $20 billion for investment in the upstream sector of the oil and gas industry after the completion of the construction of the refinery.

He said this will include “the buying over of choice oil blocks,” establishment of retail outlets, etc. while the $10 billion will be used for the construction of the refinery, gas plant and a petrochemical plant.

He explained that they are holding talks with some local banks that would warehouse the funds before construction begins.

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  • We welcome the investment initiative and hope it is not a gambit to obtain crude oil allocation without actually delivering. At times like this, we cannot help being skeptical because we have heard this kind of talk in the past.