- South Korean investors to construct four refineries in Nigeria
- The refineries, with a capacity of 100,000 barrels each, will be located in different parts of Nigeria
- Minister Lokpobiri emphasised the government's support for equity investment in modular refineries
As part of efforts to boost local petroleum refining and ensure energy security, the Nigerian government has approved plans by a South Korean consortium to build four refineries with a capacity of 100,000 barrels each at different sites in the country.
This was disclosed by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri at the inaugural summit hosted by the Crude Oil Refineries Owners Association of Nigeria in Lagos on Tuesday, October 8.
Public-private partnership model to drive investment in oil and gas sector
“We encourage investors to build limited refineries by providing an open environment. A recent approval was granted to invite to Nigeria a consortium of investors from South Korea, which intends to establish four 100,000 barrels-model refineries in four different locations in Nigeria,” Lokpobiri stated.
He mentioned that the Federal Government is offering a conducive and transparent environment to attract investors interested in building refineries.
Lokpobiri further said, “We have adopted the public-private partnership model to unlock investment in the midstream and downstream segments of the oil and gas sector, which will lead to the establishment of more modular and mega refineries.”
Oil minister optimistic about success of new refinery initiative
Lokpobiri mentioned that approval was recently given to extend an invitation to the consortium, though he did not disclose its name.
The oil minister expressed optimism, stating that the initiative will succeed since the Federal Government is welcoming equity investments in modular and upcoming refineries as part of efforts to secure energy supply.
“The Nigerian Upstream Petroleum Regulatory Commission has developed and published the domestic crude supply obligation guidelines to ensure transparency in the oil industry and ensure access to feedstock by our local refineries.
“In addition, we prioritise and work with stakeholders to ensure effective implementation of the recommendations of the Modular Refinery Committee to give special concession to local refineries’ owners, thereby guaranteeing feedstock to their refineries,” Lokpobiri added.
He further said, “We will ensure the deregulation of the downstream sector is 100 per cent and put in place a necessary framework that will ease the impact on the poor masses.
“The ministry has facilitated easier access to existing tax and other exemptions on refinery equipment importation, which is part of our plan to make Nigeria self-sufficient for petroleum producers and become Africa’s petroleum refining hub.”
Ministry forms emergency committee to promote domestic refining solutions
He stated that, as part of efforts to curb crude oil theft and illicit refining activities, the ministry has formed an international emergency committee focused on developing local solutions for domestic refining.
Lokpobiri explained that while the PIA established both the Petroleum Ministry and the National Gas Infrastructure Fund, financed by local petroleum sales, the ministry's thought was to use some of these funds to support refinery infrastructure, similar to developments in the gas value chain.
Marketers express concerns over NNPC portal closure amid petrol shortages
Meanwhile, TheRadar earlier reported that the Nigerian National Petroleum Company Limited (NNPCL) has closed its purchasing portal, preventing them from placing orders for petrol according to oil marketers.
The Nigerian National Petroleum Company Limited (NNPCL) spokesperson Olufemi Soneye assured that the portal will reopen after clearing backlogs.