Yemisi Izuora
The United States, US, government said it will continue to offer necessary support to encourage ongoing restructuring efforts of government to tap existing potentials in the oil and gas sector of the economy.
The US government expressed deep concern about lack of local capacity to create value in the industry and generate the needed employment that will help grow the economy.
Speaking at the signing of USD1 million, Memorandum of Understanding, MOU, between Integrated oil and gas company and the US Trade and Development Agency (USTDA), for the development of the company’s 20,000 barrels of oil daily capacity modular refinery in Lagos at the weekend, the US Ambassador to Nigeria, Stuart Symington, assured of the US government continued support towards growing Nigeria’s economy.
Syminton, said the oil and gas sector is strategic to Nigeria and it is the desire of his government to support local capacity in developing the right infrastructure that will add value to the system especially partnerships that will help deliver local partnerships.
The envoy also challenged Nigerians to develop interest in investing in the economy as such would help empower local entrepreneurs, create jobs and facilitate economic development.
He commended Integrated Oil and Gas for the initiative to support efforts of the government in bridging infrastructure gap in the sector and in particular adding value through local refining of crude oil.
In his remarks, acting director of USTDA, Thomas Hardy described the facility as bedrock for economic development which he said will bring the desired innovative solutions towards efforts to rejuvenate the national economy.
Hardy said it is the desire of the agency to invest in Nigeria as it is currently working with about eight other firms in various aspects of the economy.
He said the partnership with the oil firm aims at lending the desired support to enable Nigeria meet its in-country refining capacity.
Speaking also, the minister of state for petroleum resources, Ibe Kachikwu promised to give all needed support to see actualisation of the project.
Kachikwu who was represented by Rabiu Suleiman executive director downstream restated his commitment to ensured Nigeria attains self sufficiency in local refining of petroleum products in 2019.
He said he was inspired by the level of commitment by the management of the company to develop the facility just as he said that government was challenged by inability of those who had earlier obtained licenses to develop modular refineries.
The minister said about 33 licenses have been issued but the operators have not demonstrated commitment to take off except Integrated oil and gas and appreciated the level of support offered by the US government.
Earlier, the chairman of Integrated oil and gas, Capt. Emmanuel Iheanacho explained that the project was conceptualised to steer the country away from the wasteful historical practice whereby the country exclusively sold its crude oil exports and procured its refined products for domestic consumption.
Iheanacho said the 20,000 barrels per day refinery located at Tomaro Island Lagos, would help to boost local refining capacity, conserve scarce foreign exchange while also generate major export earnings.
He said the US government acting through the USTDA, has accelerated the process of the planned economic investments through the Industrial development grant, in the sum of $797,343 which it has seen fit to bestow the company which is first tranche of the $1 million seed grant.
Iheanacho described the grant as the first of its kind as it is the first Offshore grant to the project and which is a critical validation of the company’s business efforts and direction.