Sterling Bank Finances $100m Amakpe Refinery

No Comments » July 22nd, 2008 posted by // Categories: Energy Development Project


July 23, 2008


Sterling Bank Finances $100m Amakpe Refinery
By Mojeed Jamiu, Deputy Editor, Daily


Sterling Bank has provided guarantee for $100 million (N1.18 billion) for Amakpe International Refinery planning to process about 12,000 barrels of crude per day to boost domestic fuel supply.

Amakpe President and Chief Executive Officer, Usua Amanam, confirmed this to journalists on Monday in Lagos, where he said everything is on the ground to ensure that the refinery begins production in 12 months.

The project, sited in the Qua Iboe basin in Eket, Akwa Ibom State, is onstream with 50 per cent mechanical and electrical designs completed.

“I can assure you that we have the revalidation of our licence by the Directorate of Petroleum Resources (DPR), and the engineering design is about 80 per cent complete while the crude oil will be supplied by ExxonMobil,” Amanam stated.

He said the refinery will be one of the most modern in the world, without it being as complex and huge as conventional ones which require huge sums for a Turn Around Maintenance (TAM).

It will be based on a modular system “which makes it very easy to operate and maintain, because if one part goes bad that could be fixed while the other parts can continue to produce,” he added.

Sterling Bank Group Managing Director and Chief Executive Officer, Yemi Adeola, said it will be the first indigenous refinery to be completed in the country, and confirmed that the bank has provided guarantee for the United States Exim Bank’s funds for it.

The first phase will cost $36.5 million, the second about $57 million; much of that to lay pipelines, refine crude, and build storage tanks.

Adeola noted that the guarantee from Sterling Bank would provide support for the sub-contractors in line with the government’s local content policy.

At completion, the refinery is expected to provide direct employment for at least 250 people, and indirectly for thousands of others.

The DPR, about five years ago, licensed 18 private refineries, but cancelled them all in 2006 when they failed to meet the deadline for the take off.

Amakpe’s licence was among the ones revalidated last year.

Others are at different stages of re-certification.


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