Uchenna Izundu
International Editor
LONDON, Aug. 20 -- Nigeria's Department for Petroleum Resources (DPR) has received 26 applications from private companies wishing to build refineries in Nigeria.
According to DPR's midyear 2007 report, four of the 26 companies had their licenses overturned in March because they failed to build the refinery by the given deadline. The applications are at different stages of processing.
Under DPR's guidelines companies will be required to deposit $1 million for every 10,000 b/d of planned capacity, which would be refundable within 18 months provided the project is carried out to deadline.
The report also said the 210,000 b/d refinery in Port Harcourt operated at just about 38% capacity in the first half of this year. The facility is the only refinery working in Nigeria since Feb. 18, 2006. The Warri and Kaduna refineries remain closed because the Chanomi Creek pipeline, which would otherwise transport oil to both of the facilities, had been damaged by vandals.
Contact Uchenna Izundu at [email protected].