FG denies revoking 32 refinery licenses

THE Federal Government has denied reports that 32 refinery licenses that were issued earlier within a period of 3 years to some private companies across the country have been revoked.

The clarification reaction was made through a statement issued by the Head, Public Affairs of the Department of Petroleum Resources (DPR), Mr Paul Osu, on Tuesday, April 13, 2021, in Lagos on behalf of the agency.

The DPR stated that the refinery licenses have validity periods for the investors to achieve certain milestones and that the they would become inactive after its expiration until the company reapplies.

The statement read, “We wish to clarify that DPR did not revoke any refinery licence. Refinery licenses, like our other regulatory instruments, have validity periods for investors to attain certain milestones.

“This implies that after the validity period for the particular milestone, the licence becomes inactive until the company reapplies for revalidation to migrate to another milestone. This does not in any way translate to revocation of the licence of the company.”

The DPR had, in line with the aspirations of the government, initiated the refinery revolution programme of the country in a bid to boost local refining capacity by enabling business and creating new opportunities for new investors with the granting of modular and conventional refinery licenses to investors.

Osu further emphasized that the regulatory agency would continue to support investors in the oil and gas industry in Nigeria using its regulatory instruments such as licences, permits and approvals to stimulate the economy and align with the government’s job creation initiatives.

It should be noted that some media reports recently suggested that the DPR had revoked the refinery licenses, include modular refineries and conventional plants, that were issued to some companies for being inactive beyond the validity period.