Warri Oil Refinery Development by Limult

The Warri refinery was established
in 1978 with a refining nameplate capacity of 100,000 barrels per stream day
plant and was debottlenecked to 125,000 barrels per stream day in 1987. The
refinery is located at Ekpan, Warri, Delta State, and it is operated by the
Warri Refining & Petrochemicals Company (WRPC) Limited, an NNPC subsidiary.
The refinery was installed as a complex conversion plant capable of producing
Liquefied Petroleum Gas (LPG), Premium Motor Spirit (PMS), Dual Purpose
Kerosene (DPK), Automotive Gas Oil (AGO), and Fuel Oil from a blend of Escravos
and Ughelli crude oils’. WRPC has a petrochemical plant complex that produces
Polyproylene, and carbon black from the propylene-rich feedstock and decant oil
from the Fluid Catalytic Cracking unit (FCCU).

Apr. 30, 2000, Nigeria awarded
Italian company Comerint SPA a $7.6 million contract for turnaround maintenance
for its 125,000 b/d refinery at Warri, said a spokesman for Nigerian National
Petroleum Corp. The work was expected to be completed within 5 months. The
contract was part of a drive by NNPC to repair all its refineries, which have
been plagued for years by repeated and debilitating failures.

The plant has been out of service
due to an explosion in its crude distillation unit heater that caused major
damage to the main crude oil heater. Ten companies were shortlisted for the
Warri contract before Comerint won the bidding process. The most recent
maintenance work was in 1994.

Nigeria has three other refineries
60,000 b/d and 150,000 b/d plants at Port Harcourt in the
southeast and a 110,000 b/d plant at Kaduna, in the north. Turnaround
maintenance at Port Harcourt's 60,000 b/d refinery was completed in 1999, while
the 150,000 b/d plant was shut for similar work on May 15. It is being rehabilitated
by Nigerian firm Chrome.

The rehabilitation of the Kaduna
plant, started more than 2 years ago with an expected cost of $240 million, is
yet to be completed.

Nigeria plans to eventually
privatize the four plants, which provide only 40% of domestic refined products

Contact us at +2347052446249 for
more information on our refining industry development services or visit our
store at www.limult.com/shop to see more products that we make available for
the people.

Port Harcourt Oil Refinery Development by Limult

Petroleum Minister Timipre Sylva was cited by Agence France-Presse (AFP) as saying that Italian firm Maire Tecnimont has already been selected by the government to undertake the repair work at the Port Harcourt refinery, which has a refining capacity of about 210,000bpd.

Due to the lack of domestic refining capacity, the country relies on imported petroleum products despite being Africa’s top oil producer, reported AFP.

Crude oil almost always needs to be processed (refined) prior to consumption. The process of refining separates crude oil into useable finished products for transportation, residential and commercial heating, power generation, petrochemical production and asphalt formation. It is refining that gives oil its value to end-customers. Marketing refers simply to the distribution and sale of refined products, from bulk distribution to retailing. Integrated oil companies tend to report refining and marketing earnings together.

The refining industry is a global, highly cyclical commodity business in which profitability is sensitive to marginal changes in product supply or demand. Marketing, on the other hand, is more regional in nature, and earnings are more stable. The volatility of refining and marketing, or ‘downstream’ earnings, arises primarily because of the cyclicality of refining margins.

Limult Group provide a refinery project management service, providing our clients with expert consultation on refinery construction projects and new proposals, oil refinery plant optimization and the development of new strategies for the marketing of crude oil products.

Contact Us at +2347052446249 for more information on our refining industry development services or visit our store at www.limult.com/shop to see more products that we make available for the people.