The Federal Government announced on Tuesday that a consortium of investors from South Korea has finalized plans to build four refineries, each with a capacity of 100,000 barrels, at various locations across the country.
This investment is expected to enhance Nigeria’s refining capabilities and contribute to the local economy.
This was disclosed by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, at the maiden edition of a summit organised by the Crude Oil Refineries Owners Association of Nigeria in Lagos, according to The Punch.
According to him, the Federal Government is actively encouraging investors to establish refineries by creating a conducive environment for all participants.
He noted that recent approvals were granted to invite the South Korean consortium, although he did not disclose its name.
“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.
“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,” he stated.
Lokpobiri stressed that this initiative will yield positive results, as the Federal Government is open to equity investments in modular refineries and other new refinery projects.
This approach is part of efforts to ensure energy security in the country.
“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,” he expounded.
He added “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.”
Lokpobiri noted that while the Petroleum Industry Act established the petroleum ministry and the National Gas Infrastructure Fund—financed by domestic petroleum product sales—the ministry envisions utilizing a portion of this fund to support infrastructural development for refineries, similar to initiatives in the gas value chain.
“In effect, we will initiate the review of the PIA to enable this. Meanwhile, CORAN as a body should take up the campaign. Through the Petroleum Technology Development Fund and the Nigerian Content Development and Monitoring Board, we are prioritising partnerships with international institutions in knowledge transfer for manpower in refinery operations, and investment in research and development, to support technological advancements and innovation in the refining sector.
“In In no distant time, we intend to create the apprenticeship programme in collaboration with existing refineries to develop expertise in our refinery operations,” he disclosed.
