The Federal Government is set to support the development of modular refineries as a strategy to curb crude oil pipeline vandalism, according to the Minister of Petroleum Resources (Oil), Senator Heineken Lokpobiri.

During a weekend visit to the ongoing Ebenco Global Link Limited modular refinery in Koko, Delta State, Lokpobiri urged illegal refiners to consider replicating the Ebenco model by acquiring modular refineries, with financial assistance from the government.

He explained that operators of modular refineries would legally procure crude oil, pay taxes, and create employment, offering a sustainable solution that benefits both the government and former illegal operators.

“Producing modular refineries locally is one way to address pipeline vandalism,” Lokpobiri said. “When Ebenco is completed, we want to replicate this model in collaboration with stakeholders so that those breaking pipelines can instead acquire modular refineries. If they don’t have the funds, we will explore options for them to procure them and pay back over time. This will generate employment, revenue, and a win-win situation for all.”

The minister expressed satisfaction with Ebenco’s progress, promising to commission the refinery once fully established. He highlighted the successful integration of foreign technology, which has been domesticated in line with global standards.

“This is what other countries do: acquire technology and localize it. Ebenco, in partnership with international partners, is ensuring that its production meets global standards. I am very impressed and recommend this model to anyone seeking to operate in the midstream sector,” Lokpobiri said.

He also confirmed that the Federal Government would support the fledgling local refinery and pledged to involve the Nigerian Content Development Monitoring Board (NCDMB) in assessing potential partnerships.

Ebenco CEO Ebenezer Oluwagbemiga Akin revealed that the plant is in its final stages of development. While the company holds a license for a 30,000-barrel-per-day plant, it is currently producing at a capacity of 1,000 barrels. The refinery will produce Automotive Gas Oil (AGO), kerosene, naphtha, and FPSO products.

Ngozi Nwankwo, Director of Liquid at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), praised the refinery for leveraging innovative local technologies, noting that it avoids common challenges faced by other modular refineries, such as high operating costs and inconsistent crude supply. She encouraged local investors to emulate Ebenco’s model.

With government backing and a focus on local content, the Ebenco modular refinery is poised to become a benchmark for sustainable, homegrown petroleum production in Nigeria.