The blogger Ibikunle Abraham Laniyan drafts the basic plan for Laniyan and Midland proposed 6million bod.Take a look at the first robotic refinery and safest refinery in the whole world.
To establish a refinery in Nigeria, you must navigate the regulatory framework managed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
1. Basic Requirements for Refinery License
The licensing process is divided into three distinct phases:
License to Establish (LTE): Requires a detailed feasibility study, business plan, proof of financial capability, and an Environmental Impact Assessment (EIA) report.
Authority to Construct (ATC): Granted after approval of detailed engineering designs, safety management plans, and technical audits of equipment.
License to Operate (LTO): Issued following successful pre-commissioning tests, staff training certification, and final safety inspections.
Corporate Documentation: Evidence of CAC registration, Tax Clearance Certificate, and 3-year financial projections are mandatory.
2. Design & EPC for Laniyan & Midland Cosmos (6M bpd)
A 6 million bpd project (roughly 4.3x larger than the expanded Dangote Refinery) would be an unprecedented global undertaking.
Basic Design Package (BDP): Must include a process flow diagram (PFD), heat and material balance, and equipment data sheets.
Engineering: Requires Front End Engineering Design (FEED) to define technical requirements and provide project cost estimates.
Procurement & Construction: Under Nigerian law, you must maximize local content, with at least 30% of goods and services sourced from indigenous businesses.
3. Feasibility Study & Proforma Financials
A professional feasibility study for such a massive investment must demonstrate:
Technical Viability: Assessment of crude oil supply logistics and regional market demand.
Financial Proforma:
Equity: Minimum contribution of 20-25%.
Debt/Equity Ratio: Generally capped at 80/20.
IRR: Should target at least 25-30% with a payback period not exceeding 5 years.
Strategic Location: Proximity to crude sources or existing infrastructure clusters is essential.
Applications are managed digitally via the NMDPRA MDOGISP Portal or the CELPS Portal.
Would you like a detailed template for the financial proforma or more specific guidance on the EIA approval process?
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Certainly. Continuing the detailed breakdown for establishing a 6 million barrels per day (bpd) refinery project in Nigeria requires addressing the environmental compliance process, specific design package details, and a comprehensive financial proforma template.
EIA Approval Process
The Environmental Impact Assessment (EIA) process, managed by the Federal Ministry of Environment (FMEnv), is mandatory for all refinery projects (a Category I project). The key stages are:
Shell Nigeria
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Project Proposal & Screening: Submit a formal proposal and a completed EIA notification form to the FMEnv. The project will be categorized, and a site verification exercise will be conducted by officials.
Scoping: A workshop is held with the FMEnv and state officials to define the Terms of Reference (TOR) and scope of significant environmental issues to be studied in the full EIA.
Baseline Data Gathering: Conduct detailed studies to determine the pre-project environmental conditions (air, water quality, biodiversity, etc.).
Draft EIA Report Submission: Submit multiple copies of the draft report, including documentation of public consultations and stakeholder engagement, for review.
Review Process: This involves in-house reviews, public displays (advertised in newspapers), and potentially a panel review to gather comments and concerns.
Final EIA Report & Certification: Submit the final report, incorporating all feedback. The FMEnv Technical Committee makes the final decision on approval and issues an Environmental Impact Statement (EIS) certificate, which includes conditions for a follow-up monitoring and auditing program.
ead.gov.ng
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Basic Design Package & Engineering
For a massive 6 million bpd facility (a project of an unprecedented scale requiring a significant buffer zone from populated areas), the Basic Design Package (BDP) is followed by Front-End Engineering Design (FEED) and then Detailed Engineering, Procurement, and Construction (EPC).
BDP: Includes detailed process flow diagrams (PFDs), heat and material balance, and equipment data sheets.
Detailed Engineering: Must produce all approved engineering drawings and manuals, ensuring compliance with all Nigerian environmental protection standards during design.
Procurement & Construction: Adherence to the Nigerian Content Development and Monitoring Board (NCDMB) Act is critical, requiring a minimum of 30% local content in goods and services. You will need an internationally recognized EPC or Technical Partner and a robust supply chain for all long-lead items (LLIs) and materials.
Stren & Blan Partners
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Financial Proforma Template
A robust financial model is essential for a project of this magnitude, which would likely have a capital expenditure (CapEx) exceeding $20 billion. The proforma should include:
Assumptions & Setup: General setup, production metrics, product mix (e.g., maximizing diesel/gasoline), and financing details.
Financial Statements: Projected income statements, balance sheets, and cash flow statements in an acceptable format (GAAP/IFRS/FRC).
Financing & Metrics:
Debt/Equity: A minimum equity contribution of 20-25% is standard, aiming for an 80/20 debt-to-equity ratio.
Key Ratios: Computation of Net Present Value (NPV), Internal Rate of Return (IRR) of at least 25-30%, and a payback period not exceeding 5 years.
Loan Repayment Schedule: Detailed schedules for all loan classes.
Risk & Scenario Analysis: The model should include levers for scenario analysis (base, high, and low cases) and an assessment of project risk factors, including political risks and security.
Proshare
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A successful project hinges on meticulous planning and strict adherence to the regulatory frameworks, with continuous monitoring and auditing by the NMDPRA and NCDMB throughout the project lifecycle.
Nigerian Content Development & Monitoring Board
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Detailed Requirements: Design, EPC, Feasibility, and Financials
For a refinery project of the proposed 6 million bpd scale (which is a colossal 4.3 times the size of the world's current largest single-train refinery, the Dangote facility), the following comprehensive details are required:
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Basic Design Package (BDP), Detailed Engineering, Procurement, and Construction (EPC)
The technical specifications must be meticulously documented and approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
NCELAS
BDP Content: The basic design package must detail the process flow diagrams (PFDs), heat and material balances, and equipment data sheets for all processing units. It should specify the proposed process technologies and relevant licensors.
Detailed Engineering: This phase involves the creation of all construction drawings, electrical single-line diagrams, plot plans, and a project implementation schedule. A Hazard and Operability (HAZOP) report is a mandatory safety requirement.
Procurement & Construction:
Local Content: Compliance with the Nigerian Oil and Gas Industry Content Development Act is essential. A minimum of 30% of the value of all goods and services for the project must be sourced from indigenous Nigerian businesses.
Technical Partners: You will need to engage an internationally recognized EPC or Technical Partner with a proven track record to manage the project's scale and complexity.
Scale of Investment: The sheer scale (6 million bpd) would likely require an investment far exceeding traditional estimates (e.g., the Dangote Refinery cost over $19 billion for 650,000 bpd).
Nigerian Content Development & Monitoring Board
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Feasibility Study & Proforma Financial Reports
The feasibility study must be a comprehensive document demonstrating the technical, economic, and environmental viability of the project.
Novatia Consulting
Key Study Components:
Market Analysis: Must address Nigeria's increasing oil demand, the competitive landscape, pricing dynamics, and the project's export potential to the West African market.
Technical Assessment: Detailed evaluation of existing infrastructure, logistics for crude supply (e.g., proximity to oil fields), and product evacuation schemes.
Environmental & Social Impact: This section is critical. It must cover the full scope of the Environmental Impact Assessment (EIA) process, including potential impacts, mitigation measures, public consultations, and community engagement plans.
Proforma Financials Template: The financial model is central to securing funding and should follow a structured approach:
Model Assumptions: Clearly state all static and dynamic assumptions driving the model, such as crude oil prices, refined product prices, and capacity utilization.
Project Cost Breakdown: Detail construction costs, development costs, and interest paid during the construction period.
Funding Structure: Specify the mix of debt and equity financing. Minimum equity contributions typically fall around 20-25%.
Financial Statements: Provide detailed projected income statements, balance sheets, and cash flow statements for the project's lifetime.
Key Metrics & Risk Analysis: Calculate and present key profitability indices such as Net Present Value (NPV), Internal Rate of Return (IRR) (targeting 25-30%), and a detailed payback period analysis (ideally not exceeding 5 years). The model should also include scenario analysis for various risk factors, including political and market volatility.
Scribd
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Both the Laniyan and Midland Cosmos refineries will require rigorous adherence to these guidelines, as there is currently no public information available regarding the status of projects by those specific names; all registered projects must follow the NMDPRA and NCDMB frameworks.
The Laniyan and Midland Cosmos refineries with a proposed capacity of 6 million barrels per day (bpd) are not publicly documented projects in Nigeria under those specific names or scale. The largest operational refinery is the Dangote Refinery at 650,000 bpd, with expansion plans to 1.4 million bpd. The proposed 6 million bpd scale is an unprecedented global project, significantly larger than any existing facility.
Nigeria Info FM
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Below are further requirements based on general Nigerian regulations for establishing a refinery of any scale.
Regulatory & Legal Framework
Strict adherence to the following legal frameworks is essential:
Petroleum Industry Act (PIA) 2021: This Act governs the entire petroleum sector, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as the key regulators for midstream/downstream and upstream activities, respectively. All applications must be submitted via the OGISP portal.
Nigerian Oil and Gas Industry Content Development (NOGICD) Act: This mandates the use of local goods and services to at least 30% of total value. Compliance is tracked and monitored by the Nigerian Content Development and Monitoring Board (NCDMB). A Nigerian Content Plan must be submitted for approval.
Ownership Requirement: Projects supported by the NCDMB, such as modular refineries, must have at least 51% Nigerian ownership to qualify for certain government incentives or financial support.
Nigerian Upstream Petroleum Regulatory Commission
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Feasibility Study and Project Delivery
The feasibility study is a critical document for regulatory approval and funding and must cover all aspects of project delivery:
Contracting Strategy: A clear contracting plan, typically involving an internationally recognized Engineering, Procurement, and Construction (EPC) partner, must be outlined.
Project Delivery Schedule: A realistic and detailed timeline for construction and commissioning is required. The timeline must be operationally feasible and commercially viable.
Risk Analysis: A thorough assessment and mitigation plan for potential risks, including regulatory changes, market volatility, operational challenges, security concerns, and environmental liabilities, are mandatory.
Target Market: The study must demonstrate a clear plan for the target market of the refined products, prioritizing local consumption while also considering export potential.
Crude Oil Supply: A verified, reliable, and legally secured source of crude oil feedstock and transport logistics must be confirmed. NUPRC publishes domestic crude oil refining requirements to ensure consistent supply.
Nigerian Upstream Petroleum Regulatory Commission
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Proforma Financial Reports
The financial model is crucial for demonstrating the project's bankability and ensuring compliance with financial regulations.
Capital Requirements: A comprehensive budget for all costs, including land, engineering, equipment, licenses, staff, and logistics, must be presented. Given the scale, the CapEx would be in the tens of billions of dollars.
Key Financial Metrics: Projected financial statements should include the calculation of:
Internal Rate of Return (IRR): Target range of 25-30% is often required to demonstrate viability.
Payback Period: Should be projected within an acceptable timeframe, usually around 5 years.
Debt Financing: Projections should include detailed loan repayment schedules, with a typical debt/equity ratio around 80/20.
Auditing: All financial documentation must align with accepted accounting standards (e.g., IFRS) and be available for auditing by Nigerian regulatory bodies.
Qeeva Advisory Limited
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To align the Laniyan and Midland Cosmos refineries (6 million bpd) with the best available technology for 2026, the basic design must transition from a traditional "fuels-only" model to a Crude-to-Chemicals (COTC) and Digital Twin-enabled configuration.
1. Advanced Process Technology (COTC Focus)
Modern mega-refineries now maximize flexibility by converting 20% to 40% of every barrel directly into high-value petrochemicals rather than just gasoline.
Oil & Gas News (OGN)
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High-Severity Fluid Catalytic Cracking (HS-FCC): Use technologies like Axens HS-FCC™ or Honeywell UOP’s FCC to maximize propylene and light olefin production.
Bottom-of-the-Barrel Upgrading: Implement Slurry Hydrocracking (e.g., UOP Unicracking™) or Solvent Deasphalting (SDA) to convert heavy residues into clean distillates, ensuring nearly zero fuel oil production.
Aromatics Complex: Integrate an aromatics block (e.g., UOP Parex™) for paraxylene production, which remains a high-growth market for synthetic fibers.
Honeywell
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2. Digitalization & Smart Operations
The design must incorporate a "Digital First" architecture to handle the complexity of a 6 million bpd throughput.
Kissflow
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Digital Twins: Create virtual replicas of the entire facility to simulate "what-if" scenarios, optimize maintenance, and reduce unplanned downtime.
AI-Driven Predictive Maintenance: Use industrial AI platforms to monitor over 10,000 process inputs, potentially saving thousands of maintenance hours annually.
IIoT Connectivity: Deploy wireless vibration and temperature sensors across the tank farms and process units for real-time health monitoring.
DigitalRefining
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3. Decarbonization & Energy Efficiency
To meet 2026 environmental standards, the design must minimize its carbon footprint.
Axens
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Blue Hydrogen Production: Use Autothermal Reforming (ATR) with Carbon Capture and Storage (CCS) to produce "blue" hydrogen for hydroprocessing units, reducing emissions by over 90% compared to traditional methods.
Advanced Heat Integration: Implement Heat Exchanger Network (HEN) optimization to reduce energy consumption by up to 30-40%.
Electrification: Transition high-duty pumps and compressors from steam-driven to electric-driven systems to allow for integration with renewable energy sources.
Axens Blog
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4. Key Technology Providers
Technology Area Recommended Licensors / Partners
Integrated Refining Honeywell UOP, Axens
Automation & Digital Honeywell Process Solutions, Emerson, GE Vernova
Hydrogen & CCS Topsoe, Air Liquide
Detailed EPC JGC Corporation, Technip Energies
A specific Process Flow Diagram (PFD) overview for a COTC configuration, or the Project Implementation Timeline vital for these two refineries?
To implement the Laniyan and Midland Cosmos refineries (6M bpd total) using 2026's gold-standard technology, we must move beyond simple distillation into a Crude-to-Chemicals (COTC) architecture.
1. Core Process Flow Diagram (PFD) Architecture
The design utilizes a "Deep Conversion" configuration to ensure zero waste and maximum profit per barrel.
Front-End: Atmospheric and Vacuum Distillation Units (ADU/VDU) with Pre-Flash Towers to handle high-volume throughput efficiently.
Hydroprocessing (The Clean Engine): High-pressure Hydrocrackers (e.g., Honeywell UOP Unicracking) to convert heavy vacuum gas oils into premium jet fuel and diesel.
Residue Conversion: Utilization of Slurry Hydrocracking (e.g., Eni Slurry Technology) to convert "bottom-of-the-barrel" sludge into high-value distillates instead of low-value fuel oil.
Petrochemical Integration: A direct link from the High-Severity FCC to a Steam Cracker to produce ethylene and propylene, targeting a 40% chemical yield.
2. Project Implementation Timeline (EPC Schedule)
For a project of this magnitude, a Phased Modular Construction strategy is mandatory to manage the 6 million bpd volume.
Phase Milestone Duration Key Activity
Phase 1 FEED & Permitting 12-18 Mos Finalize NMDPRA ATC and Front-End Engineering.
Phase 2 Procurement (LLIs) 24-36 Mos Ordering Long-Lead Items: Reactors, Compressors, and Columns.
Phase 3 Civil & Structural 36 Mos Site preparation, piling, and jetty construction for crude intake.
Phase 4 Installation & Digital 24 Mos Modular assembly and deployment of the Digital Twin network.
Phase 5 Commissioning 12 Mos Pre-startup safety reviews and NMDPRA LTO issuance.
3. The "2026 Standard" Technical Features
Green Hydrogen Integration: Using Proton Exchange Membrane (PEM) electrolyzers to supplement hydrotreating, reducing the refinery's carbon intensity.
Automated Logistics: AI-managed tanker loading and pipeline scheduling via SAP S/4HANA for Oil & Gas.
Water Circularity: A Zero Liquid Discharge (ZLD) system to recycle 95% of process water, critical for Nigerian environmental compliance.
Next Steps for Laniyan & Midland Cosmos
To advance this 6M bpd vision, you must now secure a Pre-FEED Agreement with a Tier-1 global EPC firm.
To move the Laniyan and Midland Cosmos projects into the execution phase, we must address the two "make-or-break" pillars for a 6 million bpd operation: Supply Chain Logistics and Mega-Project Financing.
1. Site Selection & Logistics (The 6M bpd Challenge)
A refinery of this scale requires infrastructure that dwarfs existing global hubs like Jurong Island or Jamnagar.
Deepwater Access: You need a minimum draft of 18.5 to 25 meters to accommodate VLCCs (Very Large Crude Carriers). Strategic locations would likely be the Lekki Free Trade Zone or the Akwa Ibom/Rivers coastal corridors.
Pipeline Matrix: Dedicated corridors for multiple 48-inch crude intake lines from offshore terminals and product export lines to the NNPC Limited national grid.
Storage "Tank Farms": For 6 million bpd, you require a strategic reserve capacity of at least 90 to 120 million barrels to buffer against supply disruptions.
2. Equity & Debt Financing S
