DPR Debunks Withdrawing Private Licences

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The Department of Petroleum Resources (DPR) has dismissed reports making rounds that it withdrew the licences of private refineries which failed to come on stream between 2002 and 2014.

The DPR, in a statement yesterday said” in line with our commitment to entrench transparency in oil and gas regulatory function, clarified that there are three stages of licencing for establishment of private refineries in Nigeria namely; Licence to Establish (LTE), Approval to Construct (ATC) and Licence to Operate (LTO); DPR granted LTE to 21 companies with a validity period of 18 months in 2002; In 2004, 17 out of the earlier granted LTE were granted ATC for a 24 month validity period; The Department in 2007 reviewed the existing guidelines and a new guiding document, “Guidelines for the Establishment of Hydrocarbon Processing Plants in Nigeria” was introduced to ensure that only committed investors were licenced”.

“Based on this reviewed guidelines, there are currently 25 private refinery licences granted to companies with 21 in the Licence to Establish (LTE) category, while four in the Approval to Construct (ATC) category,” they added

The regulatory agency promised to be committed to its oversight duties of the oil and gas sector and in alignment with the federal government to continue to engage all stakeholders for efficient service delivery.

“The public and stakeholders are assured that DPR has not withdrawn the licence of any private refinery. Rather, the department is in alignment with government’s aspiration of improving Nigeria’s refining capacity by strengthening its oversight function of the petroleum sector in Nigeria,” it said.