Abia State is set to benefit from a major private sector investment and the creation of thousands of jobs as HSI Energies prepares to commence construction of a 10,000 barrels-per-day modular refinery at the Abia Industrial Innovation Park, Owaza, in Ukwa West Local Government Area.
The refinery, which will be developed in phases, is expected to not only generate employment opportunities but boost the State’s Internally Generated Revenue(IGR) and attract foreign direct investment.
Speaking after a meeting with Governor Alex Otti in Nvosi Isialangwa South LGA, the Chairman and Chief Executive Officer of HSI Energies, Ugwumba Chikezie Nwosu, said the project had reached an advanced stage while equity sourcing, debt financing among others are in progress.
The HSI Energies Boss said that the refinery will create about 1,000 direct jobs in its first phase, with expansion plans up to 30,000 barrels per day, translating to 3,000 direct jobs, thousands of indirect jobs, and $300 million in foreign direct investment.
He added that each 10,000 barrels per day capacity is expected to generate about $68 million in tax revenue for the State.
“The refinery is 10,000 bars of oil per day. That’s what the license is. And for each 10,000 bars of oil per day, there will be about 1,000 direct jobs created in Abia State.
“We intend to getto 30,000. The only thing stopping us from going to 30,000 immediately is because we have to source for the crude oil that will refine. So by the time we get to 30,000, that means 3,000 direct jobs and many indirect jobs.
“For each 10,000 barrels of oil per day refinery, the tax that will come to government, internally generated revenue from tax will be about $68 million.
“It will also bring in foreign direct investment of $300 million, by the time we get to 30,000 barrels of oil per day. This first two phases will be about $100 million of foreign direct investment, just for the modular refinery part of it”, Ugwumba Nwosu explained.
According to him, the socio-economic impact of the refinery will be immense, ranging from training opportunities for Abians in the refining and oil and gas business, to local access to petroleum products.
“It will create employment opportunities, like I’ve mentioned, training opportunities to develop people in the refining business and oil and gas business in Abia State.
“And the socioeconomic impact of being able to have your own petroleum products near you is indescribable so there are quite a number of benefits it will bring to Abia State”, Nwosu said.
He said that construction is slated to commence in the first quarter of next year, while designs are ongoing with the Nigerian firm Cakasa handling civil works and U.S.-based Refuels LLC, Houston, responsible for the crude distillation unit.
Ugwumba Nwosu also disclosed plans for gas projects to follow the refinery phase, as well as potential future collaborations in palm wine processing and natural Medicine/Pharmaceuticals once energy infrastructure at the park is put in place.
“They (US based Refuels) mentioned that they would want to bring in processing into the Industrial Park and that process includes palm wine processing and also pharmaceutical using traditional methods.
“Those will come later on where there is energy available in the park, which is what my company is currently doing”, Nwosu noted.
He thanked State Government for the construction of access road leading to the refinery as well as the multifarious developmental projects ongoing in the State.
In his response , Governor Otti reaffirmed his commitment to ensuring the timely realisation of the Abia Industrial and Innovation Park (AIIP), Owaza, by the first quarter of next year.
The Governor, while noting that the AIIP, covering about 2,000 hectares of land has the capacity to host numerous industrial companies, stated that his administration has been working tirelessly to create a conducive business environment with 100 percent return on investment.
He explained that the expansive site at Owaza has been designated for a gas-powered industrial ecosystem, comprising energy facilities, logistics, housing, a modular refinery, petrochemical plants, fertiliser companies among others.
Governor Otti also expressed gratitude to the Group Chief Executive Officer of the company for the decision to site the modular refinery in Abia, having concluded preliminary works on the project site.
