LAGOS, Nigeria (VOICE OF NAIJA)-A South Korean consortium has finalized plans to construct four refineries, each with a capacity of 100,000 barrels, in different locations across Nigeria, the Federal Government announced on Tuesday.
The Minister of State for Petroleum Resources, Heineken Lokpobiri, shared this information at the inaugural summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
He emphasized that the Federal Government is fostering an open environment to attract investors for refinery construction.
Lokpobiri also mentioned that approval has been given to engage the 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 narrated.
The oil minister stated that this initiative will be effective, as the Federal Government is receptive to equity investments in modular refineries and other new refineries to enhance energy security.
“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.
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“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 explained.
He spoke further, “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 explained that while the Petroleum Industry Act established the Ministry of Petroleum and the National Gas Infrastructure Fund, which is funded by domestic petroleum product sales, the ministry intends for a portion of this fund to be allocated to support infrastructure development for refineries, similar to the approach taken 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 no distant time, we intend to create the apprenticeship programme in collaboration with existing refineries to develop expertise in our refinery operations,” he disclosed.
To combat crude oil theft and illegal refining, he stated that the ministry has established an international emergency committee focused on developing home-grown solutions for domestic refining.