Integrated Modular Refinery: American EXIM Bank to finance 85% of US Content

Capt. Emmanuel Iheanacho, Chairman Integrated Oil and Gas Ltd.

The Modular Refinery project by Integrated Oil and Gas Limited has been assured of 85 per cent financing of the US Content by the American EXIM Bank, which is a part of the $450 million Tomaro Industrial Trade Park project in Apapa, Lagos.

The Chairman of Integrated Oil and Gas Limited, Capt. Emmanuel Iheanacho, disclosed this in an interview with OnepageAfrica.

Besides the $800,000 given as support for the engineering design by the United States Trade and Development Agency (USTDA), the United States Export, Import Bank has also offered to finance 85 percent of the US content.

Iheanacho  said that the cost of the US content, which is the Central Processing Unit, will be $32million.

In his words: “ 85 per cent of the US content is the Central Processing Unit of the refinery. The refinery will be of American design. It will cost about $32 to buy that piece. They will give us 85 percent of that money and we will then bring 15percent of it as our contribution.

He, however, explained that the cost for the US content was different from the total cost of building the refinery which he put at  $116 million.
The amount of the entire refinery is $116 million, so there will be about $80m that we have to look for, he said.

Iheanacho noted that prospective investors have been drawn to the project, considering the detailed approach it has been taking from the start, and that the company has stayed with its policy of first approach to everything.

He said: “we have taken our time to plan this project… if people see the US EXIM investing its money in an idea, if they see the USTDA also supporting by shelling out $800000 of it, then they will know that the project is being well conceived and so it will spur other people to come forward to also put in their resources by way of equity.

He disclosed that having carried out the detailed engineering work, the company will be hosting technical experts from the United States, the Department of Petroleum Resources (DPR) and the Nigeria Export Processing Zone Authority (NEPZA) for a review meeting of the project.

His words:  “We are now through with the detailed engineering. We are now going to review the project from the beginning to the end and if there are no negative issues that are raised we will take the report from that project to the DPR and ask for an authority to construct.

So, technically speaking, we have finished designing it, starting from articulating it , market report, first of all carry out the market survey, is there the market for refineries, yes, there is the market, then we go into business feasibility report. We have done that, then we create a model , a financial model to show that there is money in it … We have done all of these things – and they have been approved by the DPR.

“Then the Americans, when they gave us a grant to do the detailed engineering last year, they specified their own parameters to be covered so that if they end up giving us more money, then they know that we are prepared. We have absolutely carried out study necessary for establishing a refinery.

“ So next week, the Americans will be coming for us to have a review meeting. The meeting will involve the DPR, NEPZA.. once we finish that meeting and everyone is satisfied, we will then go to the Director, DPR and ask for authority to construct. So, once that is done, we will go into full search for funding – so that is where we will require the services of major accountants in Nigeria – KPMG, PWC , go to people who are likely to invest and invite them. Once we have the money, off we go.

Iheanacho appreciated the Americans for their support for the project and made good to say that the project has generated more reports than any of the local prospective refineries.