I've gone through the Federal Ministry of Petroleum Resource's General Requirement and Guidance Information for the Establishment of Modular Refineries in Nigeria. I'm also aware that license have been given to about 38 firms to establish modular refineries in Nigeria, yet only about 3 have constructed or are constructing.

For those that know more than I do, I seek to know if its advisable to invest in the downstream sector (modular refinery operation) of the petroleum industry. Considering the technical economics and operational elements required to make it commercially viable.

backbone503:
I've gone through the Federal Ministry of Petroleum Resource's General Requirement and Guidance Information for the Establishment of Modular Refineries in Nigeria. I'm also aware that license have been given to about 38 firms to establish modular refineries in Nigeria, yet only about 3 have constructed or are constructing.

For those that know more than I do, I seek to know if its advisable to invest in the downstream sector (modular refinery operation) of the petroleum industry. Considering the technical economics and operational elements required to make it commercially viable.

Cc:
Ahiboilandgas

Frezhkid10:

Cc:
Ahiboilandgas

why not appoint me as business consultant to the projects for a fee......u want to build refinery na us small investors u dey ask are you for real

ahiboilandgas:
why not appoint me as business consultant to the projects for a fee......u want to build refinery na us small investors u dey ask are you for real

lol

ahiboilandgas:
why not appoint me as business consultant to the projects for a fee......u want to build refinery na us small investors u dey ask are you for real

I know how capital intensive investments in the oil sector are. However, every project starts with a single idea, and most times, this doesn't come from the money bags.

So tell me, why do you think the Modular refinery project hasn't so far been a success in Nigeria. I've read of and heard several reasons, I just need more. Its always good to know more (if possible ALL) of the disadvantages/possibilities of failure before venturing into anything.

backbone503:


I know how capital intensive investments in the oil sector are. However, every project starts with a single idea, and most times, this doesn't come from the money bags.

So tell me, why do you think the Modular refinery project hasn't so far been a success in Nigeria. I've read of and heard several reasons, I just need more. Its always good to know more (if possible ALL) of the disadvantages/possibilities of failure before venturing into anything.

Spoke brilliantly.

It is obvious, you are writing a research proposal and need diverse information from readers.

backbone503:


I know how capital intensive investments in the oil sector are. However, every project starts with a single idea, and most times, this doesn't come from the money bags.

So tell me, why do you think the Modular refinery project hasn't so far been a success in Nigeria. I've read of and heard several reasons, I just need more. Its always good to know more (if possible ALL) of the disadvantages/possibilities of failure before venturing into anything.

are u writing a thesis for the award of a degree

ahiboilandgas:
are u writing a thesis for the award of a degree

lol. NO. This is not an academic exercise, and why its not in the Education Forum. Besides, NL is definitely not a place to get referenceable materials.

Godlylifeoneart:
It is obvious, you are writing a research proposal and need diverse information from readers.

And you feel this is a good place to source for research materials?

The first question an investor would consider is, what is the closest alternative? Import of refined products or alternative energy source (like electric vehicles) are the only two businesses that could compete with or hinder the market shares of a modular refinery.
Now, compare the economic value of these alternatives, considering availability and sustainability of each and you will have the answer. What advantage does modular refinery have over others.

backbone503:


And you feel this is a good place to source for research materials?

refinery tends to be profitable from 100 thousand barrels daily... smaller refinery can only produce deseal and the grade can compet with the one from real refinery.....grade (density)

.

backbone503:
I've gone through the Federal Ministry of Petroleum Resource's General Requirement and Guidance Information for the Establishment of Modular Refineries in Nigeria. I'm also aware that license have been given to about 38 firms to establish modular refineries in Nigeria, yet only about 3 have constructed or are constructing.

For those that know more than I do, I seek to know if its advisable to invest in the downstream sector (modular refinery operation) of the petroleum industry. Considering the technical economics and operational elements required to make it commercially viable.

I'm not sure it's commercially viable to profitably operate a modular refinery in Niger because it have very high fixed costs but prices are regulated in Nigeria therefore it will be difficulty to break even because the capacity of the refinery is limited

SavageResponse:


I'm not sure it's commercially viable to profitably operate a modular refinery in Niger because it have very high fixed costs but prices are regulated in Nigeria therefore it will be difficulty to break even because the capacity of the refinery is limited

Will this narrative change if/when the downstream sector is fully deregulated or PMB finally decides to accent to the Petroleum Industry Bill? Or are there other problems? e.g. the "Nigerian factors"?

sonnie10:
The first question an investor would consider is, what is the closest alternative? Import of refined products or alternative energy source (like electric vehicles) are the only two businesses that could compete with or hinder the market shares of a modular refinery.
Now, compare the economic value of these alternatives, considering availability and sustainability of each and you will have the answer. What advantage does modular refinery have over others.

Well, refining locally will definitely be cheaper, because transportation and other logistics involved in importation will be greatly reduced. On alternative source of energy, I don't think Nigeria is ready for that. Remember that Ben Murray Bruce present a bill on this, and the House overwhelmingly voted against it.

I feel the greatest problem against modular refining in Nigeria is political, and this really scares the willing foreign investors.

ahiboilandgas:
refinery tends to be profitable from 100 thousand barrels daily... smaller refinery can only produce deseal and the grade can compet with the one from real refinery.....grade (density)

.

Are you aware that quality PMS is illegally refined in the creeks in Niger Delta? If this can be done illegally, why not also legally?

backbone503:


Are you aware that quality PMS is illegally refined in the creeks in Niger Delta? If this can be done illegally, why not also legally?

am aware time bomb is been poorly refractorted in the creeks ...without chemist on ground to take flash points but some ogogoro drinking boys thing organic chemistry and hydrocarbon na play .....abi chemist no worry to explain

backbone503:


Will this narrative change if/when the downstream sector is fully deregulated or PMB finally decides to accent to the Petroleum Industry Bill? Or are there other problems? e.g. the "Nigerian factors"?

The Nigerian factor will always affect project dynamics for a long time until Nigerian learn to be contented and not steal

Once the government has the balls to deregulate the Oil Sector it will open up the sector to more players because refineries will be more profitable since the owners will then be able to charge cost reflective prices for their products

ahiboilandgas:
am aware time bomb is been poorly refractorted in the creeks ...without chemist on ground to take flash points but some ogogoro drinking boys thing organic chemistry and hydrocarbon na play .....abi chemist no worry to explain

You call someone skilled in the art of fractional distillation an "ogogoro drinking boy"? Those guys are very skilled and highly literate.

backbone503:



You call someone skilled in the art of fractional distillation an "ogogoro drinking boy"? Those guys are very skilled and highly literate.

story i watch aljeezera documentary on poorly high explosives refining processes with raw fire and woods .....causing permanent damage to the ecology and risking the live of innocent consumer of their deadly cock tails

They dont even have thermometers to know at what temperatures pms is distilling talkless of fractionation......they bunch oil thieve and nusaince
......they are driven by greed ,money fail state called Nigeria