Can you introduce OPAC Refineries to our audience? 

OPAC Refineries is a modular refinery in Nigeria, promoted by our parent company, OMSA Integrated Services Limited, with the core mission to refine crude oil and supply clean fuels in Nigeria and Sub-Saharan Africa. We started our 10,000 bpd proof-of-concept project in 2017, with the plan to increase the plant’s capacity to 60,000 bpd within the next five years, with the intent to locate more modular refineries close to onshore marginal fields across Nigeria. Various challenges, especially the lack of crude oil supply to the refinery, have limited our expansion plans, but we see challenges as stepping stones and are continuously working on opportunities to optimize the plant’s installed capacity.    

Why is there a lack of crude oil supply?

One would have thought that a country like Nigeria which produces crude oil would be able to supply crude to our refinery, but we are still faced with the lack of supply. To mitigate this challenge, the government needs to create a solid platform for the supply of feedstock to refineries in Nigeria. As a crude-producing country, the government’s first focus should be to dedicate a particular quantity of that supply to local refineries in Nigeria. The PIA and the Regulations have captured domestic crude supply, but we have not seen these regulations being implemented. However, there are current conversations that are ongoing about implementing this law.

Read the full interview here to explore more on refining opportunities, the gas market, and OPAC’s strategies for the future.