FG approves licence for 10,000 barrels refinery in Delta

 FG Approves License for New 10,000 BPD Refinery in Delta State

The Federal Government of Nigeria, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has approved the construction of a new refinery in Delta State.

The license was granted to MRO Energy Limited for the establishment of a 10,000 Barrels Per Stream Day (BPSD) refinery in Imode, Ughelli.

Boosting Nigeria’s Refining Capacity

This approval comes just two months after Process Design and Development Limited was granted a similar license to construct a 27,000 BPD refinery in Dole-Wure, Akko, Gombe State.

Announcing the development via its official X (Twitter) handle on Tuesday, the NMDPRA stated:

“The Authority Chief Executive, Engr. Farouk Ahmed, presented a License to Establish a 10,000 Barrels Per Stream Day Refinery at Imode in Ughelli, Delta State, to MRO Energy Limited.”

Nigeria’s Expanding Refinery Network

With this latest approval, Nigeria now has around 11 operational modular and regular refineries, increasing the country’s refining potential.

Earlier this month, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) announced a partnership aimed at establishing a 50,000 BPD refinery, further enhancing domestic refining capacity.

Challenges in the Refining Sector

Despite the rising number of refineries, many remain non-operational or functioning below full capacity due to infrastructure and operational challenges.

To address domestic refining needs, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has set a production target of 770,500 barrels of crude oil per day for local refineries.

This move aligns with the government’s broader strategy to boost local refining capacity, reduce reliance on fuel imports, and enhance energy security.