The Department of Petroleum Resources (DPR) has issued new guidelines for the establishment of hydrocarbon processing plants. It also issued an addendum “supplementary guidelines for the design, construction and operation of modular refinery plants in Nigeria”, The Guardian reports.

According to the DPR, the guidelines shall cover all refinery establishments, adding that the establishment of modular refinery plants, shall be with a design capacity not more than 30, 000 barrels per day (bpd). The new guidelines became necessary to make it flexible for licensed refineries to begin operations without delay. Already, about 25 private refinery licences issued by the DPR to investors are yet to commence operation and risk having their licences revoked.

The new guidelines disclosed that 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. This is determined by the production capacity, access to infrastructure, and limit of the environmental degradation.