The Delta State Government has said the ongoing construction of the MB Refinery and Petrochemical Company Limited in Ajagbodudu, Warri North Local Government Area, is expected to begin production within 18 months.
The state Commissioner for Oil and Gas, Peter Uviejitobor, disclosed this during an inspection visit to the refinery site following a presentation by the management of the company.
The project is a 30,000-barrel-per-day modular refinery being developed in phases, with the first phase expected to produce 5,000 barrels of crude oil per day.
Uviejitobor said the project was one of the investments emerging from the Delta State Government’s efforts to attract private-sector investment following its recent Economic and Investment Summit.
He said the refinery would increase local refining capacity, create jobs and strengthen Delta’s industrial base when completed.
According to the commissioner, the state government is committed to supporting private investments that can create employment and expand economic opportunities for residents.
He said inspection of the facility showed that work had progressed on the basement and foundation, while areas for the installation of petroleum product storage tanks had also been developed.
Uviejitobor said the location of the refinery along the riverbank and the large expanse of land acquired by the company would provide advantages for transporting equipment to the facility and moving refined products.
He added that the location would also support future expansion of the refinery into petrochemical production.
The commissioner described the project as having the potential to grow into a major industrial hub and urged investors and strategic partners to support it through financing arrangements and public-private partnerships.
He said the arrival of equipment from overseas would further speed up construction and move the project closer to production.
“The project has the potential to develop into a major industrial hub capable of competing with some of the country’s leading refineries,” Uviejitobor said.
He added that the proposed petrochemical component could attract other industries to the area, create more jobs and stimulate economic activities in surrounding communities.
Refinery to expand in three phases
The Chairman and Chief Executive Officer of MB Refinery and Petrochemical Company Limited and Bob and Sil Global Services Limited, Akuyoma Bobson, said the refinery would be developed in three phases.
Bobson explained that the first phase would have a capacity of 5,000 barrels per day and produce products including Naphtha, Automotive Gas Oil, also known as diesel, Fuel Oil and Jet Fuel.
He said the second phase would increase production capacity to 15,000 barrels per day.
According to him, the final phase would take the refinery to its planned 30,000-barrel-per-day capacity and introduce facilities for converting Naphtha into Premium Motor Spirit, commonly known as petrol.
The company also plans to use Liquefied Petroleum Gas for power generation at the facility.
Bobson said using LPG for power generation would help reduce operating costs and improve the refinery’s efficiency.
He projected that the refinery would create between 150 and 200 direct jobs for residents when fully operational.
He added that the project would generate additional opportunities for contractors, service providers, suppliers and businesses in the host communities.
The refinery management thanked the Delta State Government and the host community for their support, saying the cooperation would be important to completing the project and commencing operations.
The development comes as the Delta State Government continues to seek private-sector investments in the oil and gas industry and other sectors as part of efforts to expand the state’s economic base beyond traditional government revenue sources.
