NNPC, NCDMB, ZED Energy  partners on N10.5bn Brass Petroleum Products Terminal

Chinazor Megbolu

The Nigerian National Petroleum Corporation (NNPC), Nigerian Content Development and Monitoring Board (NCDMB) and ZED Energy Limited had partnered by signing the shareholders agreement on the construction of Brass Petroleum Products Terminal Limited (BPPT).

The BPPT project, which will be sited at Okpoama, Brass Local Government Area, Bayelsa State, the groups said at the weekend is  estimated to cost  N10.5 billion.

A report showed that NCDMB and NNPC owns 30 per cent while ZED Energy owns 40 per cent and would operate the terminal upon completion.

The terminal, they also noted would make refined petroleum products available at riverine communities of the Niger Delta at the standard prices, discourage the operations of illegal refineries and create employment opportunities for citizens of the Niger Delta and other Nigerians.

The terminal, according to them would serve as a strategic reserve for the country as it would hold up to 50 million litres of products.

“It would also serve as a two-way product jetty – land and marine trucks loading of automotive gas oil (AGO), premium motor spirit (PMS), dual purpose kerosene (DPK) and aviation turbine kerosene (ATK).

“The project would enhance energy security in the Niger Delta and is expected to create 1000 direct jobs during construction and another 5000 direct and indirect jobs during the operations phase, because of the nature of downstream operations to create huge employment opportunities”.

The Minister of State for Petroleum Resources, Dr. Timipre Sylva, in his remarks, said the project is another major achievement of President Muhammadu Buhari in the Niger Delta region.

He explained that the Oloibiri Museum and Research Center (OMRC), the Brass Fertilizer and Petrochemical Company Limited (BFPCL), the Nigerian Oil and Gas Park, amongst others are a pointer to that effect.

Sylva further noted that no former leader of Nigeria had impacted the oil sector in the Niger Delta region more than President Buhari.

Sylva averred that residents of the riverine areas had perpetually bought refined petroleum products at astronomical prices as a result of the huge cost of transporting products to those locations.

He also attributed the prevalence of illegal refineries in the region to the non-availability legitimate alternatives and added there’s hope that the BPPT would solve some of the problems of the Niger Delta region.

However, the Executive Secretary NCDMB, Engr. Simbi Wabote said the economic benefits of co-locating the BPPT with the Energy Infrastructure Park being developed at Okpoama and the Brass Fertiliser and Petrochemical Company Limited (BFPCL), at Odioma, Brass – both projects being developed with equity financing by the NCDMB.

“If you go to developed economies, there are parks for manufacturing and industrialisation.

“When you have the Brass Fertilizer, the BPPT and the refinery that is being built in the same area, you get the benefits of being within a Free Trade Zone. It will bring down the costs of developing those products simultaneously because the raw materials are just behind them.

“There is no reason to take the investments to distant locations where costs would increase,” Wabote said.

In his address, the Group Managing Director, NNPC, Mallam Mele Kyari maintained that the NNPC should have invested in the terminal 30 years ago, saying that what is happening now is a mean feat that would be delivered.

“Beyond the clear social responsibilities, this makes business sense. The location of the planned depot would create a platform for the delivery of petroleum products to some of our offshore facilities.

“NNPC is playing the role of facilitating the supply of petroleum products to all sections of this country, more importantly to the region that produce the resources, where refined products are not readily available.

“This initiative would make sure that we deliver products in the most fair and equitable means,” Kyari said.