The modular refineries in Nigeria are not working due to price regulation.
The Nigerian National Petroleum Company Limited disclosed this on Wednesday, adding that the government’s controlled pump price of PMS was one of the main reasons modular refineries in Nigeria were not producing Premium Motor Spirit, also known as petrol.
A modular refinery is a scaled-down refinery that requires far less capital than standard full-scale refineries. They’re crude oil processing plants that can process up to 30,000 barrels of oil per day.
Nigeria now has a number of modular refineries in Edo, Delta, Imo, and other states, with intentions to expand the number through private sector investment.
OPEC increased Nigeria’s oil production limit from 1.718 million barrels per day in March to 1.735 million bpd in April 2022, according to figures issued on Wednesday by the Organization of Petroleum Exporting Countries.
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Amid the rise in OPEC oil output quota for Nigeria, the cost of Brent, the crude against which Nigeria’s oil is priced, increased on Wednesday, increasing to $111.03/barrel as of 6.54 pm Nigerian time.
Following the completion of the 26th OPEC and non-OPEC Ministerial Meeting, held by videoconference on March 2, 2022, the organization increased the country’s crude oil output limit.
Nigeria has recently fallen short of its oil production quota. OPEC upped Nigeria’s crude oil production target for March early last month, despite the country’s failure to meet its authorized monthly output targets.
Nigeria’s oil production target for March 2022 was boosted by OPEC to 1.718 million barrels per day, a little rise from the 1.701 million barrels per day objective authorized in February.
