Lagos govt approves 250 hectares of land for Mid Oil refinery
Lagos State government has approved about 250 hectares of land for the establishment of 100,000 barrels per day Mid Oil Refining and Petrochemical Company Limited proposed refinery in Ejirin, Epe Local Government Area of the state.
The acquisition of the land would enable the company commence necessary construction activities that would lead to it refining
petroleum products after it would have gotten approval for the project from the Department of Petroleum
Resources (DPR).
The approved land covers parts belonging to neighbouring communities of Ejirin, Sekungba, Lumodan, Ododugba and Arogbo all in Epe Local Government Area.
The company, according to a source close to Lagos State government, had meetings with various leaders of the communities concerned with the aim of fashioning out a proper social corporate responsibility (CSR) that would give the communities a sense of belonging and foster good relationship with the management of the company.
The oil firm had proposed to the Lagos State government to establish 100,000 barrels per day capacity refinery in the state.
According to a DPR source, the firm’s application is receiving the necessary attention and in due course it would get the go ahead to start work on the site for the project.
The source further stated that Mid Oil, among other companies, that have indicated intentions to establish refineries, except Dangote Refinery, is the only one that has exhibited some level of seriousness.
“It brings an update of it activities to DPR for review constantly”, the source said.
If the firm is able to carry through its proposals and scale all the hurdles, Lagos will be joining the comity of oil states. This refinery
will later complement the efforts of Dangote Refinery that is proposing to establish 400,000 barrels per day refinery at the Lekki Free Trade Zone.
There are presently four refineries in the country, two in Rivers State and one each in Delta and Kaduna states, all of which are publicly- owned and performing abysmally below expectation leading to the country relying on imported refined petroleum products to run its economy.
The state government is said to have welcomed the idea, and is presently studying the proposals through its Ministry of Energy and
Mineral Resources.
The government would, however, not want to see the type of environmental degradation in the Niger Delta happen in the state
on account of the activities of the company.
So the issue of Environmental Impact Assessment (EIA) and the location is important, the source told BusinessDay.
The Lagos State government has so far shown more than passing interest in the oil and gas sector. A little over three years ago, the state established the Ministry of Energy and Mineral Resources, and took a step further to establish the Lagos Oil and Gas Corporation aimed at optimising the benefits of oil and gas in the country.
Dangote Group is investing about $9 billion in the establishment of oil refinery/petrochemical company within the LFTZ which sits
on about 16,000 hectares.
Dangote had during a visit assured that the communities stand to benefit enormously as over 8,000 engineers would be trained
while jobs would be created for youths of the communities, adding that “the zone also holds enormous economic benefits for Lagos
State and the country.”
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