Waltersmith today executed the EPC agreement for its proposed 5,000 bopd refinery with VELEM, a consortium of US based company, VFUELS LLC and Nigerian based Lambert Eletromec Limited. The refinery will process 5, 000 bopd and produce 271m liters of refined products, Diesel, Naptha, HFO and Kerosene to meet domestic demand.
The project was conceptualized in 2011 to mitigate the frequent outage of the third-party export Trans Niger Pipeline (TNP) and to optimize the full value of our produced crude through in country processing and refining. Waltersmith believe that
The crude feedstock will be supplied from the adjoining Ibigwe flowstation to the dedicated crude storage tanks at the refinery site via a 6” diameter pipeline equipped with a flowmeter where it will be pumped into the Crude Distillation Unit (CDU).
Waltersmith worked extensively with the Africa Finance Corporation (AFC) in negotiating the contract with VELEM. AFC is also raising the debt of $35m for the project.
Estimated completion time is March 2020.